PM Mitra Mega Textiles Park inaugurated in Lucknow and Hardoi districts

• 19 Apr 2023

Why in News?

On 18 April 2023, Union Minister of Commerce, Industry and Textiles Piyush Goyal inaugurated PM Mitra Park in Lucknow and Hardoi of the state in the presence of Chief Minister Yogi Adityanath.

Key Points

• The MoU was signed in Lucknow in the presence of Union Minister of Commerce, Industry and Textiles Piyush Goyal for setting up of Textile Parks in Lucknow and Hardoi under 'PM MITRA Yojana'.
• PM Mitra Park Lucknow will be developed in public private partnership mode through a Special Purpose Vehicle (SPV), which will be owned by the central and state government. The Special Purpose Vehicle (SPV) / Master Developer will not only develop the Industrial Park but will also maintain it during the concession period.
• PM Mitra Park Lucknow will have a total area of 1,000 acres, with an investment of Rs 10,000 crore and is expected to provide direct employment to one lakh people & indirect employment to two lakh people.
• PM Mitra Park is being developed at Attari village in Maliha bad block of Lucknow district, which is very well connected to major cities of the country by road, rail and air connectivity. The nearest dedicated freight corridor and inland container depot to the park is Kanpur, which is at a distance of 95 kilometers (about 59.03 mi) from the park.
• PM Mitra Park Lucknow will have an incubation center, common processing house, a common effluent treatment plant, design center, testing center and other textile related facilities.
• Under this scheme, the central government will provide an assistance of Rs 500 crore to PM Mitra Park Lucknow for the development of general infrastructure.
• PM Mitra Park will strengthen the value chain of the Lucknow textile sector to make it globally competitive.
• It is known that a successful Global Investors Summit was organized in Uttar Pradesh in February 2023, in which investment proposals of more than Rs 33 lakh 50 thousand crores were received. Out of this, an investment proposal of more than Rs 56,000 crore is for the textile sector.
• The Ministry of Textiles, Government of India will provide incentives to the manufacturing units to be set up in PM Mitra Park Lucknow on a ‘First Come First Serve’ basis.
• The Ministry of Textiles, Government of India, has made a provision of Rs 300 crore to encourage the manufacturing units to be set up in PM Mitra Park, Lucknow.
• This incentive amount will be three percent of the total annual turnover of the unit, the limit of which per company will be as follows-
  • Investment of Rs 300 crore or more- 10 crore per annum on the total incentive for an Anchor Investing Company subject to a maximum limit of Rs.30 crore.
  • Investment of Rs 100-300 crores- A cap of Rs.5 crore per annum on the total incentive for an investee company subject to a maximum limit of Rs.15 crore.
  • Other investment companies and contractors- 1 crore per annum and a maximum limit of Rs 3 crore on the total incentive but they should have employment of 100 or more people.
• According to Uttar Pradesh Textile and Garmenting Policy 2022, additional incentive amount for manufacturing units established in PM Mitra Park Lucknow.
  • Power tariff subsidy of Rs 2 per unit (up to Rs 60 lakh per annum) for five years for units established in PM Mitra Park and employing a minimum of 50 persons.
  • 100% stamp duty exemption for manufacturing units set up in PM Mitra Park, Lucknow.
  • Open permission to access power to the master developer.