Each park to be operated in PPP-mode by a Central-State Government SPV
As a major move to position India strongly on the global textiles map, the Government has approved the setting up of seven PM MITRA parks with a total outlay of Rs.4,445 crore in a period of five years as announced in Union Budget for 2021-22.
The 7 Mega Integrated Textile Region and Apparel Parks (PM MITRA) will be setup at Greenfield and Brownfield sites located in different States.
Proposals of State Governments having ready availability of contiguous and encumbrance-free land parcel of 1,000+ acres along with other textiles related facilities and ecosystem are welcome, the Cabinet said on 6 Oct 2021.
Maximum Development Capital Support (DCS) of Rs.500 crore to all Greenfield PM MITRA and a maximum of Rs.200 crore to Brownfield PM MITRA will be provided for development of Common Infrastructure (@30% of the Project Cost) and Rs.300 crore of Competitiveness Incentive Support (CIS) will also be provided to each park for early establishment of textiles manufacturing units, said the Cabinet.
Core Infrastructure: Incubation Centre & Plug & Play facility, Developed Factory Sites, Roads, Power, Water and Waste Water system, Common Processing House & CETP and other related facilities e.g. Design Centre, Testing Centres etc.
Support Infrastructure: Workers’ hostels & housing, logistics park, warehousing, medical, training & skill development facilities
The park will develop 50% Area for pure Manufacturing Activity, 20% area for utilities and 10% of area for commercial development.
Each park will be developed by a Special Purpose Vehicle (SPV) owned by the State and Central Governments in a Public Private Partnership (PPP) Mode.
The Master Developer will not only develop the Industrial Park but also maintain it during the concession period. Selection of this Master Developer will be based on objective criteria developed jointly by State and Central Governments.
The majority State Government-owned SPV will be entitled to receive part of the lease rental from developed industrial sites and will be able to use that for further expansion of textiles industry in the area by expanding the PM MITRA Park, providing Skill Development initiatives and other Welfare measures for workers.
The Central Government will also provide a fund of Rs.300 crore for each park to incentivize manufacturing units to start operations. This will be known as Competitiveness Incentive Support (CIS) and will be paid up to 3% of turnover of a newly established unit the park. Such support is crucial for a new project under establishment which has not been able to break even and needs support till it is able to scale up production and be able to establish its viability. #investment #infrastructure #parks #textile #manufacturing /fiinews.com
