New Delhi: The Centre is likely to set up PM Mega Integrated Textile Region and Apparel Parks (PM MITRA) in Assam after the State government has expressed its willingness for the same.
The decision to set up PM MITRA was taken following Union Cabinet’s meeting. chaired by Prime Minister Narendra Modi here today. The government has approved the setting up of 7 PM MITRA projects with a total outlay of Rs 4,445 crore in a period of 5 years.
A Cabinet note said that 7 mega parks will be set up at greenfield and brownfield sites located in different willing States.
“Proposals of State governments having ready availability of contiguous and encumbrance-free land parcel of 1,000+ acres along with other textiles-related facilities and ecosystem are welcome,” it noted.
Several other states such as Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Karnataka, Madhya Pradesh, and Telangana have expressed their interest.
Setting up of such parks was announced in Union Budget for 2021-22. PM MITRA is inspired by the ‘5F vision of Prime Minister Modi. The ‘5F formula includes farm to fibre: fibre to factory; factory to fashion; fashion to foreign.
This integrated vision is expected to help to further the growth of the textile sector in the economy.
Maximum Development Capital Support (DCS) of Rs 500 crore to all greenfield PM MITRA and a maximum of Rs 200 crore to brownfield PM MITRA will be provided for the development of common infrastructure (30 percent of the project cost) and Rs 300 crore of competitiveness incentive support (CIS) will also be provided to each PM MITRA park for early establishment of textile manufacturing units.
State government supports will include the provision of 1,000 acres of land for the development of a world-class industrial estate.
The PM MITRA park will be developed by a special purpose vehicle (SPV) which will be owned by the State government and the Government of India in a public-private partnership (PPP) model. The master developer will not only develop the industrial park but also maintain it during the concession period. Selection of this master developer will happen based on objective criteria developed jointly by State and Central governments.
SPV in which the State government has majority ownership will be entitled to receive part of the lease rental from developed industrial sites and will be able to use that for further expansion of the textiles industry in the area by expanding ing the PM MITRA park, providing skill development initiatives and other welfare measures for workers.