PM MITRA: States asked to consider power tariffs at parks
03 September 2022, Mumbai:
Ahead of approving proposals for Mega Integrated Textile Region and Apparel (PM MITRA), the central government has asked states to provide a long-term projection for power tariffs that would be charged at these parks.
About 13 states had sent 18 proposals for the textile park.While Madhya Pradesh has sent four proposals, Maharashtra and Karnataka have sent two each. The government will most likely select only one proposal from each state.Punjab, however, did not fulfil the criterion of providing 1,000 acres of litigation/encumbrance-free land.
States that ensure support measures such as affordable power, land and effective labor laws will get preference in the selection for the proposed MITRA parks scheme.The scheme was announced in budget 2021 and given a budget of Rs 4,445 crore for seven years up to 2027-2028. Seven such parks are due to be approved. States where mega textile parks will be set up have almost been finalised, but the government is trying to get a few things from the states by way of concessions. It is trying to get states to agree to a better power regime.
In some states, the cost of power is quite high and the government wants that reduced. They have been asked to submit a long-term roadmap – say, 15 years – of the power tariff that will be charged at these textile parks. They have been advised to refrain from raising power charges for 15 years.
Join our community on Linkedin
