Mega Textile Park proposal in Hardoi got authorised | 18 Mar 2023

Why in News?

• On 17th March 2023, the Government of India announced sites for setting up 7 PM Mega Integrated Textile Region & Apparel (PM MITRA) parks for the textile industry, including Hardoi district of Uttar Pradesh.

Key Points

• With the construction of Mega Textile Park on 1000 acres in Hardoi district of the state at a cost of 1200 crores, all the works and facilities related to the textile industry will be available in a single complex. With this, an investment of Rs 10,000 crore and the employment of lakhs of people are expected in the state.
• Sant Kabir PM Mitra Textile and Apparel Park will be the name of the park that will be constructed in the Hardoi region of Uttar Pradesh under PM Mitra. The state will receive five billion rupees as compensation.
• It is noteworthy that the Central Government has approved the setting up of PM Mitra (Prime Minister's Mega Integrated Textile Region and Apparel) Park in seven states of the country namely Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra.
• Out of 18 proposals for PM Mitra Parks that were submitted from 13 states, these 7 sites were chosen. For this, the evaluation of eligible states and locations was carried out by a transparent selection system, based on various factors such as connectivity, existing ecosystems, clothing/industrial policies, infrastructure, utility services, etc., taking into account objective standards.
• For this purpose, model connectivity was also used for the verification of the PM Speed Power-Multi-National Master Plan.
• A special pavement wheel (SPV) owned by the central and state government will be established for each park, with 51 percent of the Northern Territory government and 49 percent of the Government of India. SPV will monitor the implementation of the project.
• The Ministry of Textiles will provide financial assistance of up to Rs 500 crore per park as capital assistance for the development of the park SPV.
• Competitive incentive support (CIS) of up to 300 crores per park will also be provided to encourage the rapid implementation of units in PM MITRA Park. The Master Developer and Investor Units will also be facilitated by mixing with other plans of the Government of India to ensure additional incentives.
• The textile park in the province will be developed in PPP mode. The free-of-charge land has been granted to the Handloom and Textiles Department for this. The Additional Chief Secretary, Handloom and Textiles Department, Government of Uttar Pradesh will be appointed as the Chief Executive Officer (CEO) of SPV.
• About 1 lakh direct and 2 lakhs of lateral employment is expected to be generated from this park.