- Tuesday, February 25, 2025
By: Shubham Ghosh
THE cabinet of Indian prime minister Narendra Modi on Wednesday (6) approved setting up of seven new mega textile parks with an aim to put India on the global textile map. The move is directed at attracting foreign direct investments into the textile sector and generating employment. The cabinet cleared a total outlay of Rs 4,445 crore (£437 million) to build seven mega integrated textile region and apparel parks (PM-MITRA) over a period of five years, a report in News18 said.
Sharing a glimpse of the government’s mega plan to bolster export and employment, the cabinet said that the integrated parks will be at greenfield or brownfield sites located in various states of the country that are eager to participate.
ALSO READ: India’s new drone policy will help people living in remote areas
For developing the common infrastructure of PM-MITRA in greenfield sites, the Modi government will extend capital support of up to Rs 500 crore (£49 million) or 30 per cent of the project cost, whichever is higher, the report added.
India’s textiles minister Piyush Goyal on Wednesday tweeted about the government’s move, calling it “landmark” and will create 21 lakh (2.1 million) jobs.
Modi Govt’s landmark decision to empower Textiles sector.
Approval for 7 Mega Integrated Textile Region & Apparel (PM MITRA) Parks. ₹ 4,445 Cr outlay for #PMMitra4Textiles in 5 yrs to enable:
?World class infrastructure
? 21 lakh jobs
? More production & export led growth pic.twitter.com/6dTLb5NzyI
— Piyush Goyal (@PiyushGoyal) October 6, 2021
“For Brownfield sites, after assessment, Development Capital Support at 30 per cent of project cost of balance infrastructure and other support facilities to be developed and restricted to a limit of Rs 200 crore (£19.6 million),” the government said.
Besides, the government will also provide Rs 300 crore (£29.5 million) competitiveness incentive support to each PM-MITRA park for the initial establishment of textiles manufacturing units, the cabinet said. It added that this will be paid up to three per cent of turnover of a newly set up unit in PM-MITRA.
“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,” it said.
The mega textile parks, as announced in Budget 2021, will feature integrated facilities and quick turnaround time for minimising transportation losses. It will also contribute towards positioning India as a fully integrated, globally competitive hub (manufacturing and exporting) for the textile sector, the government informed earlier.
The mega textile parks will include an incubation centre and plug-and-play facility, developed factory cites, roads, power, water-and-wastage system and other related facilities.
