PM MITRA Parks: The Union Cabinet recently gave its approval to set up seven PM MITRA parks.
Note: PM MITRA parks stands for “Mega Integrated Textile Region and Apparel” parks.
- This initiative been approved to accomplish the vision of Prime Minister Narendra Modi to establish Atmanirbhar Bharat.
- The announcement to establish such parks was made in Union Budget 2021-22.
- This move seeks to help India to stand at par with Global textile giants.
- PM MITRA parks will be set up with an outlay of Rs 4445 crores in five years.
- The sites of the park will be selected by a Challenge Method based on objective criteria.
- PM MITRA parks will be based on the 5F vision of the Hon’ble Prime Minister. The ‘5F’ Formula consists of Farm to Fibre to Factory to Fashion to Foreign.
- These parks will be set up at Greenfield and Brownfield sites in different States.
- The parks will be established by a Special Purpose Vehicle which will be owned by the State Government and Government of India in a Public-Private Partnership (PPP) Mode.
- The Master Developer will develop and also maintain the park during the concession period.
Government Support under this scheme:
The various support provided by the Government under this scheme are:
- Rs 300 crore of Competitiveness Incentive Support (CIS)will be provided to investors who are setting up production facilities to incentivize manufacturing units to get established.
- For a Greenfield Park ‘developer’, the centre will provide 30% of Capital Support from the Project Cost, with a cap of ₹ 500 Cr.
- For a Brownfield sites ‘developer’, the centre will provide 30% of Capital Support from the Project Cost, with a cap of ₹ 200 Cr.
- Apart from this, the developer will get a 25-year lease of the park, and this could be extended by another 25 years.
- The scheme aims to create a world-class industrial infrastructure that would attract cutting-edge technology and boost FDI and local investment in the sector.
- PM-MITRA Parks will offer an opportunity to create an integrated textile value chain right from weaving, spinning, printing, processing/dyeing to garment manufacturing in one place.
- The establishment of these parks will benefit unemployed with seven lakh direct jobs as well as 14 lakh indirect jobs.
Which states are interested in establishing these parks?
- Till date, 10 states have shown their interest in establishing the PM MITRA parks namely, Punjab, Odisha, Assam, Gujarat, Rajasthan, Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and Madhya Pradesh.