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MoU for 1st PM Mitra Park in TN inked to integrate value chain

Days after the Government approved seven PM MITRA parks towards making India a global hub for textile manufacturing and exports, a Memorandum of Understanding to establish the first mega integrated textile regional and apparel park — PM Mitra Park — in Virudhunagar district of Tamil Nadu was signed in Chennai on Wednesday in the presence […]

Days after the Government approved seven PM MITRA parks towards making India a global hub for textile manufacturing and exports, a Memorandum of Understanding to establish the first mega integrated textile regional and apparel park — PM Mitra Park — in Virudhunagar district of Tamil Nadu was signed in Chennai on Wednesday in the presence of Commerce & Industry Minister Piyush Goyal and Tamil Nadu Chief Minister MK Stalin.

The park to be established in an area of over 1052 acres, will have an investment of over 10,000 crore and provide direct employment to 2 lakh people. Highlighting Prime Minister Narendra Modi’s vision to work with state governments to create a developed India, Goyal said the idea of establishing these integrated parks was to integrate the value chain of the textile industry which was spread out leading to increase in cost of producing the final product which had to be exported to different parts of the world.

Such parks will be established in six other states including Madhya Pradesh, Uttar Pradesh and Karnataka and will together cost Rs 4045 crore and involve investment of nearly Rs 70,000 crore. The parks will offer 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 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 7 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. State governments will provide contiguous and encumbrance-free land parcel of at least 1000 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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