PM MITRA Parks | 07 May 2022

For Prelims: PM MITRA Parks.

For Mains: Textile Industry.

Why in News?

The Ministry of Textiles has organized a National Conference on PM Mega Integrated Textile Regions and Apparel (PM MITRA) Parks Scheme.

What is PM MITRA Parks Scheme?

  • About:
    • A park will be developed by a Special Purpose Vehicle which will be owned by the Central and State Government and in a Public Private Partnership (PPP) Mode.
    • Each Park will have an incubation centre, common processing house and a common effluent treatment plant and other textile related facilities such as design centres and testing centres.
    • The Master Developer will not only develop the Industrial Park but also maintain it during the concession period.
  • Funding:
    • The centre will provide development capital support for the development of common infrastructure of Rs 500 crore for each greenfield MITRA park and upto Rs 200 crore for each brownfield park.
    • Greenfield describes a completely new project that has to be executed from scratch, while a brownfield project is one that has been worked on by others.
  • Eligibility for Incentives:
    • An additional Rs 300 crore will be provided as Competitiveness Incentive Support for the early establishment of textiles manufacturing units in each of these parks.
    • Investors who set up “anchor plants” that employ at least 100 people will be eligible for incentives of upto Rs 10 crore every year for upto three years.
  • Significance:
    • Reduce Logistics Cost:
      • It will reduce logistics cost and strengthen the value chain of the textile sector to make it globally competitive.
      • High logistics costs are considered a key hurdle to India’s goal of boosting textile exports.
    • Employment Generation:
      • Each park is expected to directly generate 1 lakh jobs and indirectly generate a further 2 lakh jobs.
    • Attract FDI:
      • The parks are crucial to attract Foreign Direct Investment (FDI).
      • From April 2000 to September 2020, India’s textile sector received Rs 20,468.62 crore of FDI, which is just 0.69% of the total FDI inflows during the period.

What is the Status of India’s Textile Sector?

Source: PIB