- To create a world-class infrastructure for the integration of different processes involved in the textile industry, the Union Cabinet has approved the establishment of seven Prime Minister Mega Integrated Textile Region and Apparel (PM MITRA) parks.
- The parks will be developed with a total spending of ₹4,445 crore over five years.
- PM MITRA parks were announced in the Union Budget for 2021-22.
- PM MITRA would provide an opportunity to develop an integrated textiles value chain at one place, starting with spinning, weaving, processing/dyeing, printing, and garment manufacture.
- The core infrastructure of PM MITRA parks will include, among other things, an incubation centre and plug-and-play facility, developed factory sites, roads, power, water, and waste-water systems, a typical processing house, a common effluent treatment plant (CETP), and other related facilities such as a design centre and testing centres, according to the official release. Workers’ hostels and accommodation, a logistics park, warehousing, medical, training, and skill development facilities will be available.
- The parks would be developed by a Special Purpose Vehicle (SPV) owned by the Central and State governments and would get two kinds of support.
- Development Capital Support, aimed at helping develop infrastructure, would fund 30% of the project cost with a cap of ₹500 crore for greenfield projects and ₹200 crore for brownfield projects.
- A separate Competitiveness Incentive Support would be limited to ₹300 crore per park.
- Note: With greenfield investing, a company will build its own, brand new facilities from the ground up. Brownfield investment happens when a company purchases or leases an existing facility.
- The parks are expected to generate 7 lakh direct jobs and provide indirect jobs to almost 14 lakh people.
Why in News?
- A National Conference on PM Mega Integrated Textile Regions and Apparel Park (PM MITRA) Parks Scheme was organized by the Ministry of Textiles on 4th May, 2022.
- PM MITRA Park will offer the opportunity to create an Integrated Textiles Value Chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing etc. at one location and will reduce logistics cost of Industry.