PM MITRA Park

Background

India’s textile sector is one of the oldest industries and a major source of employment. However, most units are fragmented and small, which increases logistic costs and reduces competitiveness in the global market. To overcome this, the Government of India launched the PM MITRA Parks scheme in 2021.

Think of it as creating world-class textile hubs, similar to integrated IT parks, but here for the textile industry — covering the entire value chain “Farm to Fibre to Factory to Fashion to Foreign.”

Quick Facts

  • Purpose: Attract investment, boost employment generation, and strengthen India’s global textile position.
  • Type: Central Sector Scheme.
  • Vision: The famous 5F formulaFarm → Fibre → Factory → Fashion → Foreign.
  • Tenure: 2021-22 to 2027-28.

Objectives

  • Promote sustainable industrialization and foster innovation (aligned with SDG 9 – Industry, Innovation, and Infrastructure).
  • Provide modern industrial infrastructure across the textile value chain.
  • Reduce logistic costs and improve India’s global competitiveness.

Salient Features

(i) Integrated Textile Value Chain

The park will provide plug-and-play facilities and training for the textile industry, ensuring everything — from fibre production to final garments — happens within the same ecosystem.

(ii) Facilities at the Park

  • Core Infrastructure:
    • Incubation centre & plug-and-play facilities.
    • Developed factory sites, roads, power, water supply, wastewater treatment, etc.
  • Support Infrastructure:
    • Workers’ hostels & housing.
    • Logistics parks and warehousing.

(iii) Land Availability

  • State governments will provide 1,000+ acres of contiguous, encumbrance-free land at a nominal price to the Special Purpose Vehicle (SPV).

(iv) Special Purpose Vehicle (SPV)

  • Ownership: Centre (49%) + State (51%).
  • The SPV will be responsible for overseeing the park’s development and functioning.

(v) Financial Support

  • Development Capital Support (DCS):
    • 30% of project cost.
    • Up to ₹500 crore (for Greenfield projects) or up to ₹200 crore (for Brownfield projects).
  • Competitive Incentive Support (CIS):
    • Up to ₹300 crore per park for early manufacturing units.

(vi) PPP Model

  • Parks will be developed in a Public Private Partnership (PPP) mode, leveraging private investments.

(vii) Finalized Locations

  • Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.

(viii) Expected Benefits

  • Attract investments worth ₹10,000 crore (domestic + foreign).
  • Generate a robust textile ecosystem and massive employment opportunities.

Why is it Important?

  • India’s textile exports face stiff competition from Bangladesh, Vietnam, and China.
  • By creating mega integrated parks, India reduces its cost disadvantages.
  • The scheme ensures economies of scale, better logistics, and global competitiveness.

In short:
PM MITRA Parks are envisioned as “textile cities” — providing everything from raw material to finished fashion under one umbrella, with world-class infrastructure, financial support, and private investment.

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