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17 January 2022, Mumbai:
Operational guidelines for the PM Mega Integrated Textile Region and Apparel (PM MITRA) parks project have been announced by the Ministry of Textiles (MoT).
The project, which has a budget of Rs. 4,445 crore, includes administrative expenses of Rs. 30 crores over a seven-year period, from 2027 to 2028.
It intends to boost the Indian textile sector by enabling the scale of operations, lowering logistical costs by bringing the full value chain together in one location, attracting investment, creating jobs, and increasing export potential.
According to the rules, the State Government would transfer land to the Special Purpose Vehicle (SPV) at a nominal price, and the SPV will be a legal entity with the State Government owning 51 percent of the equity and the Central Government owning 49 percent.
A Competitive Incentive Support (CIS) provision of Rs. 300 crore per park has been made to encourage manufacturing units to establish themselves early in PM MITRA Park.
This incentive will be given to manufacturing units up to 3% of total sales turnover to the unit built in the park in order to cut costs and partially offset disadvantages.
The CIS will have a limited number of spots available and will be given out on a first-come, first-served basis. The incentives will only be accessible to manufacturers who are not currently participating in the Production Linked Incentive (PLI) for Textiles scheme.
For one anchor investor company with an investment of Rs. 300 crore or more in its unit in these parks, the incentive cap will be Rs. 10 crores per year, with a maximum cap of Rs. 30 crores.
Similarly, the incentive cap is Rs. 5 crores per year, with a maximum cap of Rs. 15 crores for one investor company with Rs. 100-300 crore investment.
Other investment companies and tenant companies will have a cap of Rs. 1 crore per year on incentive and a maximum cap of Rs. 3 crore on incentive, but they must employ 100 people or more.
Gujarat, Tamil Nadu, Rajasthan, Telangana, MP, Bihar, and Andhra Pradesh are all pushing for a park, and several trade organisations from these states have made representations.
The distance from the nearest highway to the site, the distance from air cargo, the distance from the airport/railhead, the distance from the seaport/inland waterway/dedicated freight corridor, and the distance from the multimodal logistic park/ICD/CFS will all be given a 25% weighting.
Distance from an existing textile cluster, availability of raw resources and skilled labour suited for the textiles sector, and availability of skill development institutes/research associations/institutes will all be given a 25% weighting.
A 20% weighting is given to the availability of a good quality power source on-site to enable the development and operation of the park, as well as the certainty of a power distribution license for the Master Developer for the parking area and approval for open access power sourcing.
The Park SPV will receive Development Capital Support (DCS) in the form of a grant in aid (Capital) from the Central Government. According to the construction phasing, the DCS for Greenfield Park will be Rs. 300 crore and for Brownfield Park, Rs. 100 crore.
Phase 1 would have a 25-year concession period, while phase 2 will cost Rs. 200 crores for Greenfield Park and Rs. 100 crore for Brownfield Park. DCS is a tool that aids in the development of core infrastructure.
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