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Modi Govt's Big Push to Make India Global Export Hub; Cabinet Clears Mega Textile Park Scheme

Union Minister Piyush Goyal

Union Minister Piyush Goyal

Union Cabinet approves setting of seven mega integrated textile region and apparel parks in the next five years. This move will help to attract FDI into the textile sector and generate thousands of employments.

With an aim to put India on global textile map, the Union Cabinet on Wednesday approved setting up of seven new mega textile parks. This move will help to attract foreign direct investments (FDI) into the textile sector and generate thousands of employments. Union Cabinet cleared a total outlay of Rs 4,445 crore to build seven mega integrated textile region and apparel parks (PM-MITRA) over the next five years.

Sharing a glimpse of Modi government’s mega plant to boost export and employment, Union Cabinet said that the integrated parks will be at greenfield or brownfield sites located in different states who are willing to participate. For developing the common infrastructure of PM-MITRA in greenfield sites, the Union government will provide capital support of up to ₹ 500 crore or 30 per cent of the project cost, whichever is highest. “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," the government said. The aim is to make the project attractive for of private sector. Along with this, the government will also provide Rs 300 crore competitiveness incentive support (CIS) to each PM-MITRA park for early establishment of textiles manufacturing units, the Union Cabinet said. This will be paid up to 3 per cent of turnover of a newly established unit in PM-MITRA, it added, mentioning, “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."

Announced in Budget 2021, the mega textile parks will have integrated facilities and quick turnaround time for minimising transportation losses. It will also help to position India as a fully in integrated, globally competitive manufacturing and exporting hub for the textile sector, the Union government said earlier.

The PM-MITRA parks will have a incubation centre and plug-and-play facility, developed factory sites, roads, power, water-and-waste-water system, common processing house & CETP and other related facilities e.g. design centre, testing centres etc. Besides, it will also accommodate workers’ hostels and housing, logistics park,  warehousing, medical, training and skill development facilities for the workers. The mega integrated textile region and apparel parks will develop 50 per cent area for pure manufacturing activity, 20 per cent area for utilities, and 10 per cent of area for commercial development.

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Commenting on this game-changer project for the Indian textile industry, Union commerce and textiles minister Piyush Goyal said, “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: 1) World class infrastructure, 2) 21 lakh jobs, 3) More production & export led growth,"

The Union Cabinet on October 6 asked the state governments who have a ready ‘availability of contiguous and encumbrance-free land parcel of over 1,000 acres along with other textiles related facilities and ecosystem’ to participated in this mega project. The parks will be built by a special purpose vehicle that will be owned by state government and government of India in a Public Private Partnership (PPP) Mode.  Gujarat, Tamil Nadu and Maharashtra have shown interest in setting up textile parks, according to sources.

Under the special purpose vehicle, the state government has a majority ownership and it will be entitled to receive part of the lease rental from developed industrial sites. “The state will be able to use that for further expansion of textiles industry in the area by expanding the PM-MITRA park, providing skill development initiatives and other welfare measures for workers," it added.

Union commerce and textiles minister Piyush Goyal earlier said that the sector will achieve $44 billion exports target in 2021-22. The industry aims for $100 billion outbound shipments in the next five years, Goyal added. “Delighted at the way the textiles sector has engaged with the idea of achieving bigger targets. We must aim for a $100 billion export target in the next five years," he said.

Union Cabinet earlier approved a Rs 10,683-crore production-linked incentive (PLI) scheme for man-made fibre segment (MMF) apparel, MMF fabrics and ten products of technical textiles for five years.

“Convergence with other Central Government and State Government Schemes is available as per their eligibility under the guidelines of those schemes. This will enhance the competitiveness of the textiles industry, by helping it in achieving economies of scale and will create huge job opportunities for millions of people," Cabinet concluded.

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first published:October 06, 2021, 13:24 IST