Scheme: Many major decisions were made at the latest cabinet meeting, which was held on October 6 under the presidency of Prime Minister Narendra Modi, one of which was the adoption of the Mega Integrated Textile Region and Apparel (MITRA) Scheme.
Union Minister Piyush Goyal informed the reporters after the meeting that the said scheme had been authorised in the cabinet meeting on the same day. This initiative will cost roughly Rs 4,445 crore, according to him.
What is the MITRA Scheme, and how does it work?
The government proposed the Mega Investment Textiles Parks (MITRA) programme in the Union Budget 2021-22 to make the textile industry globally competitive.
Under this initiative, the government will invest Rs 17,000 crore in the construction of seven textile parks across the country, providing jobs to 21 lakh people in both direct and indirect jobs.
Assam, Telangana, Madhya Pradesh, Karnataka, Rajasthan, Tamil Nadu, Odisha, Punjab, and Andhra Pradesh have all indicated interest in participating.
How would the Scheme be beneficial?
When Goyal was explaining the concept, he used the example of cotton cultivated in Maharashtra and Gujarat having to go to Tamil Nadu for spinning before being processed in Rajasthan and Gujarat.
Similarly, the garments are manufactured in Bangalore, Delhi-NCR, and Kolkata, and only travel to Kandla and Mumbai for export. As a result, the MITRA Scheme will be used to overcome these issues.
7 lakh workers will be hired on the spot. According to the government, 7 lakh people would be employed directly, while 14 lakh will be employed indirectly.
More detail on this was provided by Goyal, who stated that these parks will be established in areas that can easily provide labour, as well as water and cheap land.
Other than that, the government will assess whether or not there is a need for textiles. Parks will be constructed in either greenfield or brownfield sites.
According to Goyal, the textile park will be created in brownfield or greenfield sites around the country.
All green field parks would be developed with a budget of 500 crore. The creation of a brownfield park, on the other hand, will receive Rs 200 crore.
Textile Ministry
According to the textile ministry, the world-class industrial infrastructure would attract cutting-edge technologies and enhance FDI and domestic investment in the sector.
The parks will allow for the creation of an integrated textiles value chain from spinning to weaving, processing/dyeing, printing, and garment production all in one area.
On Thursday, the textiles ministry announced the establishment of the seven PM-MITRA parks, which were announced in the Union Budget 2021-22 and authorised by the central government.
According to the statement, these parks would be built in areas with natural strength for the textile sector to thrive and the required linkages to succeed.
The GOI development capital support for a greenfield PM-MITRA park will be 30% of the project cost, with a ceiling of Rs 500 crore, according to the textile ministry.
Brownfield Sites
It claimed that for brownfield sites, development capital support would be provided at 30% of the project cost of balance infrastructure and other support facilities to be created, with a limit of Rs 200 crore.
The state government will contribute 1,000 acres of land for the establishment of a world-class industrial park.
Several states have showed interest, including Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh, and Telangana, according to the government.
Each PM-MITRA park will also receive a competitiveness incentive support (CIS) of Rs 300 crore for the early creation of textile manufacturing units.
In a public-private partnership (PPP) model, the park will be created by a special purpose vehicle that will be jointly controlled by the state government and the Indian government.
