PM
MITRA - ECONOMY
News: PM MITRA Park launched
in Amravati, Maharashtra
What’s
in the news?
● The
Maharashtra Industrial Development Corporation (MIDC), the Maharashtra
government, and the Indian Ministry of Textiles joined hands by signing a
memorandum of understanding to establish the PM Mega Integrated Textile Regions
and Apparel Park (PM MITRA Park) in Amravati,
Maharashtra.
Key
takeaways:
● The
inauguration of the PM MITRA mega textile park took place with the aim of
attracting an investment of ₹10,000 crore and creating 300,000 job
opportunities.
PM
MITRA Scheme:
● The
7 PM MITRA parks will be set up at
Greenfield/Brownfield sites located in different willing States.
● PM
MITRA Park will be developed by a Special Purpose Vehicle which will be owned
by the State Government and Government of India in a Public Private Partnership
(PPP) Mode.
● It
is inspired by the 5F vision of the Prime Minister of India. The ‘5F’ Formula encompasses - farm to
fibre; fibre to factory; factory to fashion; fashion to foreign.
Mission:
● The
scheme aims to create a world-class
industrial infrastructure that would attract
cutting-edge technology and boost FDI and local investment in the sector.
● The
scheme also aims to boost employment generation within the textile sector.
Administrative
Control: Ministry of Textiles.
Budgetary
Support: ₹4,445 crores in a period of 5 years.
Features:
● They
will have plug-and-play facilities
(business facilities will be available ready-made) to help create global
champions in exports in the textile sector.
● It
is in line with the SDG-Goal 9:
“Build resilient infrastructure, promote sustainable industrialization and
foster innovation”
Site
Selection:
● Sites
for the scheme will be selected by a Challenge
Method, based on objective criteria for Greenfield / Brownfield sites.
Supports
Provided:
● Competitiveness Incentive
Support (CIS) - The government will provide a fund
of ₹ 300 Crore to ‘investors’ setting up production facilities to incentivize
manufacturing units to get established.
● For
a Greenfield Park ‘developer’, the
centre will provide 30% of Capital Support from the Project Cost, with a cap of
₹ 500 Crores.
● For
a Brownfield sites ‘developer’, the
centre will provide 30% of Capital Support from the Project Cost, with a cap of
₹ 200 Crores.
● The
developer will get a 25-year lease of the park, and this could be extended by
another 25 years.
Infrastructure
Development:
● Core Infrastructure:
Incubation Centre & Plug & Play facility, Developed Factory Sites,
Roads, Power, Water and Waste water system, Common Processing House and other
related facilities e.g., Design Centre, Testing Centres etc.
● Support Infrastructure:
Workers’ hostels & housing, logistics park, warehousing, medical, training
& skill development facilities.
Significance:
● 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.
Go
back to basics:
● The
Indian textile sector is the sixth-largest
exporter of textiles and apparel in the world.
● The
industry is also among the top employers in the country providing direct employment to 45 million people and 60
million people in allied industries.