Mega Investment Textiles Parks Scheme

The Cabinet Board has approved the PM Mitra Programme 2022, which calls for the establishment of seven mega textile parks. Under this Pradhan Mantri Mitra Yojana, the national government has set aside Rupees 4,445 crores for the following five years. 

This program’s goal is to create “holistic unified textile processing areas” across the nation. Massive Integrated Textile Area as well as Apparel (PM MITRA) parks will connect the presently fragmented textile supply chain. Throughout this section, we shall go over the whole PM Mega Investments Textiles Parks Program.

What is the PM Mitra 2022 Plan?

Cabinet authorised seven additional mega textile plants under the PM Mitra Plan on October 6, 2021. This new project intends to provide world-class infrastructures featuring plug as well as play capabilities that will allow for significant investments throughout exports. These parks are parts of the administration’s “Farm through Fibre through Factory through Fashion towards Foreign” initiative, and each will produce one lakh direct as well as two lakhs indirect jobs.

The government originally announced this Mega Investment Textile Parks (MITRA) project in February, with the goal of making the textile sector more internationally competitive while also increasing job creation and exportation. Such Mega Investment Textiles Parks would be built on greenfield as well as brownfield areas in several willing states.

Currently, the whole textile supply chain has been dispersed and fragmented across the nation. Cotton cultivated throughout Gujarat as well as Maharashtra, spun throughout Tamil Nadu, processed throughout Rajasthan as well as Gujarat, garmenting within the National Metropolitan Area, Bangalore, as well as Kolkata, plus exports from Mumbai as well as Kandla are all part of this.

Tamil Nadu, Rajasthan, Odisha, Andhra Pradesh, Karnataka, Punjab, Assam, Gujarat, Madhya Pradesh, among Telangana are among the states that have indicated interest in the PM Mitra Yojana.

PM Mitra Parks are Made up of the Following Components

The project will be divided into two sections, the greater of which would be development assistance. The government predicts that the expense of establishing each park will be rupees 1700 crores. According to specialists, the government would contribute up to thirty percent of overall project expense, or rupees 500 crores, in greenfield areas plus up to rupees 200 crores for brownfield sites as developmental capital assistance.

From the other side, the administration will provide fair incentive assistance to the first adopters who create anchor factories and recruit at least a hundred workers. According to the Ministry, these enterprises can get up to rupees ten crore every year for the three years, for just a maximum of rupees 30 crore.

The government plans to build ‘holistic unified textile processing zones’ around such parks. This will comprise common service offices, design institutes, R&D centres, training areas, medical plus housing centres, and also Inland Cargo Terminals and logistics warehouses.

According to experts, the system was designed to function in conjunction with this textile industry’s production related incentives program (PLI). The government announced the Rupees 10,683-crore PLI, which is focused primarily at increasing the manufacturing of man-made fibres (MMF) fabric, MMF garments, as well as technical textiles.

Whereas the majority of PLIs prioritised high-value items as well as those which would reduce import dependency, synthetic fibres such as rayon, polyamide, polyester, or even acrylic, as well as technical textiles, do not fall into either category.

Both initiatives, taken combined, are anticipated to restore the sector’s declining investment as well as productivity.

The Following are the Most Important Details Concerning the Mitra Scheme

• The initiative will allow the textile sector to compete on a worldwide scale.
• It will certainly attract significant investments, increase job creation, and improve exports.
• The scheme intends to build world-class architecture featuring plug as well as play capabilities in order to develop international export champions.
• MITRA would be introduced with this Production Linked Incentive Program (PLI).
• The government has subsequently announced a consistent 5% reduction in BCD rates upon synthetic rubber, nylon chips, plus nylon fibre as well as yarn.

There’s a Lot More at Stake

In aspects of employment, especially textiles and clothing, the industry throughout India is second only after the farming industry as a whole. Based on Invest India, Indian government’s investment development agency, it employs 45 million individuals directly plus 60 million individuals indirectly.

India is a major manufacturer of textiles as well as garments in the globe. The home textiles and clothing sector accounts for 5% of India’s Gross domestic product, 7% of industrial production in terms of market value, plus 12% of this country’s export revenues.

In 2019-20, India’s textiles as well as apparel exports accounted for 11% of total commercial exports. Having the commerce department now in charge of the industry, the specific trade difficulties that have harmed India’s performance throughout the worldwide textile marketplace have been anticipated to receive more attention.

Indian firms as well as exporters have consistently lost global share to increasingly aggressive competitors from China, Bangladesh, as well as Thailand. In certain industries, such as clothing, it has been extremely huge.

Conclusion

Mega-investment “Textile” Fields will assist to increase job prospects. All of this will contribute to increasing investment. The objective of building seven textile parks within three years has already been prioritised. Massive Investment Textile Fields will assist indigenous producers in improving their conditions and fulfilling the concept of “AtmaNirbhar Bharat.” 

Such parks will have raw product availability, transportation, water as well as electricity facilities, and so on. According to recent sources, Maharashtra, Bihar, M.P, and Gujarat have shown interest in hosting textile plants. The state government of Rajasthan recently has requested clearance from the centre for the establishment of the Big Investment Textile Complex at Kankaani in Jodhpur.