Bhubaneswar: The Ministry of Textiles Friday issued the notification for setting up of seven PM MITRA Parks as announced in Union Budget for 2021-22.
Odisha has not only expressed its deep interest but also has the requisite framework for such a mega investment opportunity as the State has required amount of encumbrance free land and other facilities, said a senior official in Department of Industries.
The proposal of State Government having ready availability of contiguous and encumbrance-free land parcel of 1,000 Plus acres along with other textiles related facilities and ecosystem provide more scope for the PM MITRA Park, official said.
The PM MITRA Park is the vision of Prime Minister Narendra Modi of building an ‘Aatmanirbhar Bharat’ and to position India strongly on the Global textiles map.
PM MITRA Parks are envisaged to help India in achieving the United Nations Sustainable Development Goal 9–building resilient infrastructure, promote sustainable industrialization and foster innovation.
The programme is inspired by the 5F vision of Prime Minister which encompasses – Farm to fibre; fibre to factory; factory to fashion; fashion to foreign.
This integrated vision will help further the growth of the textile sector in the economy. No other competing nation has a complete textile ecosystem like us. India is strong in all five Fs.
The scheme is to develop an integrated large scale and modern industrial infrastructure facility for entire value-chain of the textile industry. It will reduce logistics costs and improve competitiveness of Indian Textiles.
The 7 PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks will be set up at greenfield and brownfield sites located in different willing States.
For a greenfield PM MITRA park, the union government’s development capital support will be 30 percent of the project cost, with a cap of ₹500 crore.
For brownfield sites, after assessment, the development capital support @30 percent of project cost of balance infrastructure and other support facilities to be developed will be restricted to a limit of Rs. 200 crore.
The State Government’s support will include provision of 1,000 acre land for development of a world class industrial estate.
Competitiveness Incentive Support (CIS) of Rs.300 Crore will also be provided to each PM MITRA park for early establishment of textiles manufacturing units in PM MITRA Park.
Such support is crucial for a new project under establishment which has not been able to break even and needs support till it is able to scale up production and be able to establish its viability.
The PM MITRA Parks will be developed by a Special Purpose Vehicle which will be owned by the State Government and Union Government in a public private partnership (PPP) mode.
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.
The 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 the PM MITRA Park, providing Skill Development initiatives and other Welfare measures for workers.