PM MITRA: Seven states selected to develop Mega Textile Parks
- Category
Polity & Governance
- Published
24th Mar, 2023
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Context
The Centre has selected sites in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh to set up new textile parks under the PM MITRA scheme.
Key-highlights of the development:
- Each park will come up in at least 1,000 acre land with ready nearby availability of raw material, fully-equipped infrastructure including port, road and rail connectivity, water and power availability etc.
- Objective: The mega textile parks are expected to emerge as manufacturing hubs, create employment, create global champions and enable access to state of the art textile technology.
- Centre’s assistance: The Centre’s assistance for these parks, categorised into Greenfield and Brownfield, would be 51 per cent and the balance would have to be borne by the respective State governments.
- Cost: The Rs.4, 445-crore centrally sponsored scheme will be in operation till 2027 under the Ministry of Textiles.
- Implementation: A special purpose vehicle (SPV) owned by the Centre and state governments will be set up for each park, which will oversee the implementation of the project.
About PM MITRA scheme:
- PM MITRA parks are envisaged to help India in achieving the United Nations Sustainable Development Goal 9 — ‘Build resilient infrastructure, promote sustainable industrialization and foster innovation’.
- Objective: The scheme aims to realise the vision of building an Atmanirbhar Bharat and to position India strongly on the global textiles map.
- ‘5F’ Formula: PM MITRA is inspired by the ‘5F Formula’:-
- Farm to fibre
- fibre to factory
- factory to fashion
- fashion to foreign
- The scheme will develop integrated large scale and modern industrial infrastructure facility for total value-chain of the textile industry for example, spinning, weaving, processing, garmenting, textile manufacturing, and processing & printing machinery industry.
India’s Textile Sector:
- The textile sector accounts for more than two per cent of the total GDP and more than 12 per cent of the manufacturing sector gross domestic product (GDP).
- The sector is also the second largest provider of employment in India, after agriculture.
- It provides employment to an estimated 45 million people directly and to another 60 million indirectly through allied activities.
- India is the sixth largest exporter of textile and apparel in the world, with four per cent share of the global trade in textiles and apparel.
- Schemes launched by the Government in Textile sector:
- Production Linked Incentive Scheme
- Scheme for Capacity Building in Textile Sector (SAMARTH)
- Amended Technology Up-gradation Fund Scheme (ATUFS)
- National Technical Textile Mission
- Scheme for Integrated Textile Parks (SITP)
- Integrated Processing Development Scheme (IPDS)
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Significance:
- Reduced Logistics Cost: It will reduce logistics cost and strengthen the value chain of the textile sector to make it globally competitive.
- Employment Generation: Each park is expected to directly generate 1 lakh jobs and indirectly generate a further 2 lakh jobs.
- Advancement in infrastructure and investment: Parks would provide state-of-the-art infrastructure for the textiles sector, attract investment of crores.