Cabinet approves setting up new PM MITRA textile parks

Context:

The Union Cabinet approved the setting up of seven Mega Integrated Textile Region and Apparel (PM MITRA) Parks at an outlay of ₹4,445 crore.

Relevance:

GS-III: Industry and Infrastructure (Textile Industry, Government Policies and Initiatives, Industrial Policy)

Dimensions of the Article:

1. About PM Mega Investment Textiles Parks (PM MITRA) scheme
2. Latest updates on MITRA scheme
3. Significance of Textile Sector in India

About PM Mega Investment Textiles Parks (PM MITRA) scheme

• The PM Mega Investment Textiles Parks (PM MITRA) scheme was launched in 2020 with a plan to establish Seven textile parks which will have a world-class infrastructure over three years.
• These parks will also have plug-and-play facilities (business facilities will be available ready-made) to help create global champions in exports in the textile sector.

Aims and Significance of MITRA

• The Mega Investment Textiles Parks (MITRA) Scheme aims to enable the textile industry to become globally competitive and boost exports.
• The scheme also aims to boost employment generation within the textile sector and also attract large investment.
• The scheme was launched in addition to the Production Linked Incentive (PLI) Scheme.
• The scheme will create a level-playing field for domestic manufacturers in the international textiles market.
• It will also pave the way for India to become a global champion of textiles exports across all segments.
• MITRA will lead to increased investments and enhanced employment opportunities with the support from the Production Linked Incentive (PLI) scheme.

Latest updates on MITRA scheme

• The mega parks scheme will include brownfield and greenfield projects, spread over five years.
• The Cabinet approved the MITRA Parks at an outlay of ₹4,445 crore.
• The parks would be developed by a Special Purpose Vehicle (SPV) owned by the Central and State governments and would get two kinds of support:
  1. Development Capital Support, aimed at helping develop infrastructure, would fund 30% of the project cost with a cap of ₹500 crore for greenfield projects and ₹200 crore for brownfield projects.
  2. A Separate Competitiveness Incentive Support would be limited to ₹300 crore per park.
• As many as 10 States including Tamil Nadu, Telangana and Gujarat had already shown interest
• States offering the cheapest land (contiguous and encumbrance-free land of minimum 1,000 acres) and facilities such as adequate electricity and water would be selected through a transparent challenge route.
• The SPV would select a Master Developer to set up and maintain the park for a specified period.

Significance of Textile Sector in India

• The Textile Sector accounts for 7% of India’s manufacturing output, 2% of GDP, 12% of exports and employs directly and indirectly about 10 crore people.
• Owing to the abundant supply of raw material and labour, India is the largest producer of cotton (accounting for 25% of the global output) and second-largest producer of textiles and garments and man-made fibres (polyester and viscose).
• The availability of a strong domestic market in India is a major reason that increases the importance of the sector.

-Source: The Hindu