Seven mega textile parks under the ₹4,445-crore PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme will come up in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra, the Centre announced on Friday.

The scheme, which seeks to integrate textile value chain from spinning, weaving, processing/dyeing and printing to garment manufacturing, is likely to generate investments, including FDI, worth ₹70,000 crore and create 20 lakh jobs, Commerce & Industry and Textiles Minister Piyush Goyal said at a press briefing on Friday.

“PM MITRA mega textile parks will boost the textiles sector in line with 5F (Farm to Fibre to Factory to Fashion to Foreign) vision. Glad to share that PM MITRA mega textile parks would be set up in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, MP and UP,” Prime Minister Narendra Modi tweeted earlier in the day.

Funding pattern

An SPV, owned by the Centre and the respective State, will be set up for each park, Goyal explained. The Textiles Ministry, which is the nodal Central Ministry for the scheme, will provide financial support in the form of Development Capital Support up to ₹500 crore per park to the SPV. 

An additional ₹300 crore will be provided as Competitiveness Incentive Support for the early establishment of textiles manufacturing units in each of these parks. It will be fund-limited and available on a first-come-first-serve basis, the Minister said. 

The scheme will be implemented till 2026-27, said Textiles Secretary Rachna Shah. “The PM Mitra Scheme can help the textiles sector meet the export target of $100 billion by 2030,” she noted.

Convergence with other Central schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units.

State governments will provide contiguous and encumbrance-free land parcel of at least 1,000 acres and will facilitate provision of all utilities including power supply, water, waste water disposal system, an effective single window clearance as well as a conducive and stable industrial/textile policy, per a government statement.

Selection process

The Union Cabinet had given its clearance for seven parks under the PM MITRA scheme in October 2021. The Textiles Ministry had shortlisted 18 proposals from 13 States and had assessed them through several stages of evaluation using the `challenge’ method.

Other States that had expressed interest but were not selected include Andhra Pradesh, Bihar, Chhattisgarh, Odisha, Punjab and  Rajasthan.

Eligible States and sites were evaluated using a transparent Challenge Method based on objective criteria taking into account a variety of factors such as connectivity, existing ecosystem, textile/industry policy, infrastructure and utility services, Commerce & Industry Minister Piyush Goyal said.

“PM Gati Shakti- National Master Plan for multi-modal connectivity was also used for validation,” Goyal said adding that factors such as distance of the site from cotton-producing areas and availability of skilled labour,  water, electricity and investor eco-system were evaluated.

The parks will offer an excellent infrastructure, plug and play facilities as well as training and research facilities for the industry, the statement said.

“The modern industrial infrastructure facility for the entire value-chain of the textile industry will also significantly reduce the logistics costs and improve competitiveness of our textile exports with access to state of art technology,” said A Sakthivel, President, FIEO.