Mega textile parks to be set up in seven states

In a major step towards making India a global hub for textile manufacturing and exports, the plan for seven PM Mega Integrated Textile Regions and Apparel (PM MITRA) parks for the textile industry in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra, while factoring in a thrust on textile exports, is the Government’s “effort to bring consolidation in the industry”, Commerce and Industry Minister Piyush Goyal told The Daily Guardian.

The seven PM MITRA parks approved by the Central government on Friday will come up with a cost of Rs 4,045 crore and envisages investment of nearly Rs 70,000 crore, offering an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at a single location. “The scale helps you become more competitive both in India and internationally,” Goyal said, pointing out Prime Minister Narendra Modi’s wish to see the textile industry — that has developed in India over centuries – given an opportunity to consolidate.

“Competitiveness will happen when the different elements of the industry at one place bring down the cost of logistics, ensure availability of skilled manpower in that region and see that the goods become high quality both for India and for the rest of the world. As the Consumer Affairs Minister I have to see to Indian consumers getting good quality at affordable prices also,” Goyal said.

The Ministry of Textiles will provide financial support in the form of development capital support upto Rs. 500 crore per park to the SPV. A competitive incentive support of upto Rs 300 crore per park to the units in PM MITRA Park shall also be provided to incentivise speedy implementation. Inspired by the 5F vision of the Prime Minister — farm to fibre to factory to fashion to foreign – the parks will have world-class industrial infrastructure to attract cutting edge technology, global players to manufacture in India, higher FDI, local investment in the sector and generate 20 lakh jobs. A special purpose vehicle owned by the Centre and state government will be set up for each park which will oversee the implementation of the project.

The 5F vision has the potential to boost textile exports to USD 100 billion by 2030, according to president of the Federation of Indian Export Organisations (FIEO), A. Sakthivel. “India is on the radar of global investors, who are looking for investment and expansion outside China. A scheme like PM MITRA will hasten the process of decision making of such investors in favour of India,” Sakthivel said.

The seven sites were chosen out of 18 proposals for PM MITRA parks which were received from 13 states with eligible States and sites being evaluated using a transparent challenge Method based on objective criteria taking into account a variety of factors such as connectivity, existing ecosystem, textile/industry policy, infrastructure and utility services. The PM Gati Shakti- National Master Plan for Multi-modal Connectivity was also used for validation. The Ministry of Textiles will oversee the execution of these projects. Convergence with other GOI schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units.

“PM MITRA will re-establish India’s dominance as a global textiles leader,” says Naren Goenka, Chairman Apparel Export Promotion Council. “These mega textiles parks with integrated value chain will reduce the logistics costs and create global champions by enhancing apparel exports exponentially,” Goenka added.

State governments will provide contiguous and encumbrance-free land parcel of at least 1,000 acres of land and will also facilitate provision of all utilities, reliable power supply and water availability and waste water disposal system, an effective single window clearance as well as a conducive and stable industrial/textile policy

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