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Home » UP gives green light to Rs 19.47 billion textile park and urban infrastructure projects
Industry Update

UP gives green light to Rs 19.47 billion textile park and urban infrastructure projects

Divya SBy Divya SOctober 30, 20263 Mins Read
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The state cleared expenditure proposals for seven crucial drinking water and sewerage projects spanning across Lucknow and Varanasi.

The Uttar Pradesh Cabinet has approved Ramky Infrastructure as the preferred bidder to develop a 1,000-acre PM MITRA Mega Textile Park on the Lucknow-Hardoi border, costing an estimated Rs 19.47 billion. Alongside this, the state cleared expenditure proposals for seven crucial drinking water and sewerage projects spanning across Lucknow and Varanasi.

The textile park, part of the Centre’s PM MITRA initiative, aims to stimulate private investment and create direct and indirect employment for roughly one lakh individuals, per an official state government statement.

Chaired by Chief Minister Yogi Adityanath, the Cabinet greenlit the single received bid, selecting Ramky Infrastructure as the master developer. Handloom and Textiles Minister Rakesh Sachan noted the project’s Rs 19.47 billion estimated investment, supported by central financial assistance of up to 30 per cent, capped at Rs 5 billion.

The park targets domestic and international private investments, benefiting weavers, garment makers, and exporters alike, according to the minister. It will be executed via PM MITRA Park Uttar Pradesh, a special purpose vehicle where the state government retains a 51 per cent majority stake and the Centre holds 49 per cent.

Principal Secretary Anil Kumar Sagar stated that the state government leased 1,000 acres of land to the vehicle for 99 years at a nominal Re 1 per acre annually. Ramky Infrastructure qualified following national tendering, technical evaluations, and financial assessments.

The project follows a design, build, finance, operate, and transfer public-private partnership model featuring a five-year construction timeline and a 50-year concession period. Facilities will include internal roads, electricity grids, ready factory sheds, incubation centers, common boilers, and a zero liquid discharge effluent treatment plant.

Additional infrastructure encompasses worker hostels, healthcare centers, skill training institutes, warehousing, and logistics hubs. The state will provide external infrastructure like six-lane roads, plus continuous power and water supply.

Separately, the Cabinet cleared AMRUT 2.0 funding proposals for seven drinking water and sewerage undertakings in Lucknow and Varanasi. Finance Minister Suresh Kumar Khanna explained that these initiatives target enhanced utility coverage in specified municipal zones.

In Varanasi, sewerage updates across the old Trans Varuna District 2B/2C zones alongside Lahartara and Chitaipur will benefit approximately 8.52 lakh people. Concurrently, regional drinking water upgrades will serve about 8.22 lakh residents.

In Lucknow, a targeted drinking water initiative across Aishbagh, Alamnagar, and Kesharikheda wards will assist roughly 1.56 lakh citizens. The government seeks full service coverage throughout these designated zones.

Total funding allocations for these seven civic projects comprise Rs 6.96 billion from the Centre, Rs 18.66 billion from the state, Rs 2.22 billion from local bodies, and Rs 1.13 billion for centage charges, reinforcing overall urban infrastructure.

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