Swift implementation of PM MITRA to boost textile sector investments, FDI
The parks are currently under development in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.
Industry experts have stated that the expeditious implementation of the ambitious scheme to develop seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks would assist in attracting substantial investments, including Foreign Direct Investment (FDI), in the sector, in addition to generating significant employment. After inaugurating ‘Bharat Tex 2024,’ one of the largest-ever global textile events to be organised in the country, Prime Minister Narendra Modi shed light on the government’s expansive plans to establish seven PM MITRA parks in various states. He emphasised the creation of opportunities for the entire textile sector.
The parks are currently under development in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra. It is envisioned that these parks will attract nearly Rs 70,000 crore in investment and generate 20 lakh employment opportunities.
The valuation of the Indian textiles market is estimated at Rs 12 lakh crore.
The execution of these projects is overseen by the Union Ministry of Textiles. A Special Purpose Vehicle (SPV) owned by the Centre and state governments will be established for each park, overseeing the project’s implementation.
Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), mentioned that the PM MITRA parks aim to address both traditional and emerging challenges faced by the textiles industry. These parks will bring together the entire textile value chain under one roof, inspired by the PM’s 5F vision – farm to foreign via fibre, fabric, and fashion focus.
According to Thakur, PM MITRA parks will create an enabling ecosystem by providing utilities, reliable power supply, water availability, wastewater disposal systems, and a single-window clearance for all regulatory approvals at a single location.
He further stated, “Integration of the entire textiles value chain under these parks will lead to a substantial reduction in logistics costs. This park will not only attract investments, including FDI, but also create huge employment opportunities in the sector.”
The textiles ministry will offer financial support in the form of development capital support up to Rs 500 crore per park to the SPV.
Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), expressed that the PM MITRA scheme has been a pioneering initiative for capacity building and attracting new investments. The scheme’s mandate rightly captures the industry’s requirements for cluster-based production with a presence along the value chain and hub-and-spoke models for each PM MITRA park.
He emphasised the importance of a faster implementation of the scheme to meet the industry’s target of doubling the textile base to USD 350 billion by 2030.
According to a recent report by rating agency ICRA, investments in the textile value chain under the PLI scheme and PM MITRA park, along with the China Plus One strategy, are expected to be key growth drivers.
ICRA stated in its report on apparel and fabrics that PM MITRA parks would provide an opportunity to create an integrated textiles value chain and encourage capacity additions in the segment.
A Competitive Incentive Support (CIS) of up to Rs 300 crore per park will be provided to units in PM MITRA parks to incentivise speedy implementation.
Convergence with other Government of India (GOI) schemes will be facilitated to ensure additional incentives for the Master Developer and investor units.
Under the project, state governments where the parks are being established are required to provide contiguous and encumbrance-free land parcels of at least 1,000 acres. They will also facilitate the provision of utilities, reliable power supply, water availability, wastewater disposal systems, effective single-window clearance, and a conducive and stable industrial/textile policy.
