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PM Mega Integrated Textile Regions and Apparel (PM MITRA) Scheme

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March 27, 2023

Why in news?

Recently Union government announced that seven mega textile parks under PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme will be set up in the first phase.

What is PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme?

  • Aim -To create world-class textile industrial infrastructure that would attract large scale investment including foreign direct investment (FDI) and encourage innovation and job creation within the sector.
  • Execution of PM MITRA projects - Ministry of Textiles
  • Special Purpose Vehicle (SPV) -With a 51% equity shareholding of the State government and 49% of the Centre,  SPV will be formed for each park
  • Capital Support -The Ministry of Textiles will provide financial support in the form of Development Capital Support up to Rs. 500 crore per park to the Park SPV.
  • Competitive Incentive Support (CIS) –Up to Rs 300 crore per park to the units in PM MITRA Park
  • Plug and Play Facilities -The parks will offer an excellent infrastructure, plug and play facilities as well as training and research facilities for the industry.
  • Investments -Nearly Rs. 70,000 crores investment and 20 lakhs employment generation is envisaged through these parks.
  • First phase - In first phase large textile parks spread across at least 1,000 acres will come up in 7 States - Tamil Nadu Karnataka, Telangana, Madhya Pradesh, Maharashtra, Gujarat, and Uttar Pradesh.
  • The scheme will provide entire textile value chain, from fiber to fabric to garments.

How significant is this project?

  • Integrated Textile Value Chain– The scheme provides an opportunity to create an integrated textile value chain.
  • Accelerate Exports – The parks will accelerate the pace of exports in the textile value chain and will serve as a catalyst to achieve the export target of $ 100 billion by 2030.
  • Single Window Clearances -PM MITRA has single window clearances for quick decision making and timely implementation of the scheme.
  • Employment -PM MITRA Parks will generate around 1 lakh direct and 2 lakh indirect employment per park.
  • FDI -The scheme will be open for foreign direct investments (FDI).
  • Training centers and warehouses -The scheme will have skill training centers and warehouses too
  • Micro, small and medium enterprises (MSME) – Integration of MSMEs in the supply chain value of the MITRA parks will increase the employment and number of MSMEs.

The Micro, small and medium enterprises (MSME) sector is expected to control almost 80% of the textiles and apparels made in India.

Quick facts

  • The Apparel Park for Exports – It was announced in 2002 to create a niche in foreign markets for apparel made in India.
  • It provides financial assistance to set up apparel parks that house textile manufacturing units.
  • The focus is on making high-quality textiles that are sought after in the international market.
  • The Scheme for Integrated Textile Parks (SITP) – It was launched in 2005 by incorporating two Schemes
    • Apparel Parks for Export Scheme (APES) and
    • Textile Centre Infrastructure Development Scheme (TCIDS)
  • Aim - To provide the industry with world-class infrastructure facilities for setting up their textile units.
  • It is a model illustrating a user driven approach, with independent possession of the Micro, Small and Medium Enterprises (MSMEs).

 

References

  1. The Hindu │PM MITRA
  2. PIB │ PM MITRA
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