The Union Cabinet approved the setting up of seven Mega Integrated Textile Region and Apparel (PM MITRA) Parks at an outlay of ₹4,445 crore.
GS-III: Industry and Infrastructure (Textile Industry, Government Policies and Initiatives, Industrial Policy)
Dimensions of the Article:
- About PM Mega Investment Textiles Parks (PM MITRA) scheme
- Latest updates on MITRA scheme
- Significance of Textile Sector in India
About PM Mega Investment Textiles Parks (PM MITRA) scheme
- The PM Mega Investment Textiles Parks (PM MITRA) scheme was launched in 2020 with a plan to establish Seven textile parks which will have a world-class infrastructure over three years.
- These parks will also have plug-and-play facilities (business facilities will be available ready-made) to help create global champions in exports in the textile sector.
Aims and Significance of MITRA
- The Mega Investment Textiles Parks (MITRA) Scheme aims to enable the textile industry to become globally competitive and boost exports.
- The scheme also aims to boost employment generation within the textile sector and also attract large investment.
- The scheme was launched in addition to the Production Linked Incentive (PLI) Scheme.
- The scheme will create a level-playing field for domestic manufacturers in the international textiles market.
- It will also pave the way for India to become a global champion of textiles exports across all segments.
- MITRA will lead to increased investments and enhanced employment opportunities with the support from the Production Linked Incentive (PLI) scheme.
Latest updates on MITRA scheme
- The mega parks scheme will include brownfield and greenfield projects, spread over five years.
- The Cabinet approved the MITRA Parks at an outlay of ₹4,445 crore.
- The parks would be developed by a Special Purpose Vehicle (SPV) owned by the Central and State governments and would get two kinds of support:
- Development Capital Support, aimed at helping develop infrastructure, would fund 30% of the project cost with a cap of ₹500 crore for greenfield projects and ₹200 crore for brownfield projects.
- A Separate Competitiveness Incentive Support would be limited to ₹300 crore per park.
- As many as 10 States including Tamil Nadu, Telangana and Gujarat had already shown interest
- States offering the cheapest land (contiguous and encumbrance-free land of minimum 1,000 acres) and facilities such as adequate electricity and water would be selected through a transparent challenge route.
- The SPV would select a Master Developer to set up and maintain the park for a specified period.
Significance of Textile Sector in India
- The Textile Sector accounts for 7% of India’s manufacturing output, 2% of GDP, 12% of exports and employs directly and indirectly about 10 crore people.
- Owing to the abundant supply of raw material and labour, India is the largest producer of cotton (accounting for 25% of the global output) and second-largest producer of textiles and garments and man-made fibres (polyester and viscose).
- The availability of a strong domestic market in India is a major reason that increases the importance of the sector.
-Source: The Hindu