PM MITRA: Seven states selected to develop Mega Textile Parks

Published
18th Mar, 2023

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 is envisaged to help India in achieving the United Nations Sustainable Development Goal 9 — ‘Build resilient infrastructure, promote sustainable industrialization and foster innovation’.
The scheme aims to realise the vision of building an Aatmanirbhar 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, 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)

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.