The PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks Scheme is a significant initiative by the Ministry of Textiles (MoT), Government of India, aimed at strengthening the Indian textile industry. This scheme seeks to create integrated textile regions and apparel parks, aiming to reduce logistics costs, attract investment, generate employment, and augment export potential. This piece explores the operational guidelines of the PM MITRA Parks Scheme.
Introduction to the Scheme
The PM MITRA Parks Scheme aims to develop integrated large-scale and modern industrial infrastructure facilities for the entire textile value chain. The parks are envisioned to have necessary linkages for the textile industry to flourish, including spinning, weaving, processing, garmenting, and textile machinery manufacturing.
Objectives of the Scheme
The key objectives of the PM MITRA Parks Scheme are:
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To strengthen the Indian textile industry.
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To create integrated textile regions and apparel parks.
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To reduce logistics costs in the textile value chain.
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To attract investment in the textile sector.
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To generate employment opportunities.
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To augment export potential.
Eligibility and Modalities
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Land Requirement: PM MITRA Parks will be set up on the basis of proposals received from State Governments, having ready availability of contiguous and encumbrance-free land of a minimum of 1000 acres.
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Special Purpose Vehicle (SPV): The State Government will transfer the land to a SPV, which will be a legal entity with 51% equity shareholding of the State Government and 49% of the Central Government.
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Land Use: The specific modalities for land use will be defined in transaction documents, such as Request for Qualification (RFQ), Request for Proposal (RFP), and Concession Agreement.
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Selection Process: The selection of PM MITRA Park sites will be done in a two-stage process through a Challenge Method.
Two-Stage Selection Process
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Selection of Sites: State Governments will propose sites for PM MITRA parks. The selection of a Master Developer will be based on their experience and ability to prepare a detailed project report.
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Development of the Park: Selected sites will receive grants-in-aid from MoT for infrastructure development. This will ensure the commencement of work at the PM MITRA sites.
Funding and Release of Grant
The scheme has a budget outlay of ₹4,445 crore, including administrative expenses. Funding is provided through:
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Development Capital Support (DCS): Central government support for infrastructure development.
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Core infrastructure: internal roads, power distribution, water and waste treatment.
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Support infrastructure: textile design centers, apparel manufacturing units, etc.
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Competitive Incentive Support (CIS): Incentives for manufacturing units to establish early in the parks.
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A provision of ₹300 Cr per park, limited to 3% of total sales turnover.
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Caps on incentives for anchor units and other investors.
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Release of Government of India Funds
Funds are released based on the progress of the project and matching contributions from the Master Developer. The first tranche is released after mobilization by the Master Developer and utilization of minimum ₹25 crore for infrastructure. Further releases are based on the utilization of earlier tranches and physical progress.
Project Monitoring
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MoT will monitor the progress of projects.
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A Project Management Agency (PMA) will provide technical support.
Project Approval Committee (PAC)
The proposals are approved by a Project Approval Committee (PAC), comprising:
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Secretary Textiles (Chairperson)
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Financial Advisor, MoT (Member)
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AS/JS MoT (Member Convener)
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Representative of NITI Aayog (Member)
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Representative of DPIIT (Member)
The PAC has the authority to approve projects, sanction expenditure, and fine-tune the scheme policies.
Submission of Proposals and Evaluation
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State Governments with a minimum of 1000 acres of unencumbered land can submit proposals.
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A Preliminary Project Report (PPR) is required, outlining the potential for textiles value chain and infrastructure.
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The State Government confirms industrial land use and provides support for environmental clearances.
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The PMA examines the PPR and submits recommendations to the PAC.
Finalization of RFQ, RFP, and Concession Agreement
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MoT develops model RFQ, RFP, and Concession Agreement for the selection of Master Developers.
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A Master Developer is selected for each PM MITRA Park through a transparent process.
Key Aspects of the Scheme
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Public-Private Partnership (PPP): The scheme leverages a PPP model for faster implementation.
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Integrated Infrastructure: The parks provide integrated facilities for the entire textile value chain.
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Financial Incentives: The scheme offers financial support to both developers and manufacturing units.
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State Government Role: State governments play a key role in land acquisition and implementation.
Conclusion
The PM MITRA Parks Scheme represents a strategic effort to strengthen India’s textile industry. By creating modern, integrated textile parks, the scheme aims to attract investments, generate employment, and enhance the competitiveness of the sector. The focus on infrastructure development, financial incentives, and a transparent selection process makes this scheme a significant step towards a self-reliant and robust textile industry in India.