Date: 20/03/2023

Relevance: GS-2: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.

Key Phrases: PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme, textile parks, Development Capital Support, Farm to Fibre to Factory to Fashion to Foreign, Make in India, Make for the World, Competitive Incentive Supports.

Why in News?

• The Centre has selected sites in Tamil Nadu, Telangana, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh to set up new textile parks, a year and a half after the PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme was announced.

PM MITRA:

• The parks would “provide state-of-the-art infrastructure for the textiles sector, attract investment of crores and create lakhs of jobs”.
• The scheme was announced in October 2021, and the parks will be set up by 2026-27.
• The total outlay for the project is ₹4,445 crore, though the initial allocation in the 2023-24 Budget is only ₹200 crore.
• PM MITRA mega textile parks will boost the textiles sector in line with the 5F (Farm to Fibre to Factory to Fashion to Foreign) vision.
• The scheme would be a great example of the government’s policy of ‘Make in India’ and ‘Make for the World’.
• The scheme aims to create a world-class industrial infrastructure that would attract cutting-edge technology and boost FDI and local investment in the sector.
• Environmental clearances would also be eased under the scheme.

Integrated value chain:

• The Centre envisages an investment of nearly ₹70,000 crores into these parks, with employment generation for about 20 lakh people.
• The parks will function as centres of opportunity to create an integrated textiles value chain, right from spinning, weaving, processing, dyeing and printing to garment manufacturing, all at a single location.

Cluster-Based Approach:

• The textile industry has been unorganised in the country. This increased wastage and logistical costs impacted the competitiveness of the country’s textile sector. This cluster-based approach will solve several problems in the sector.

Centre-State collaboration:

• The proposed world-class industrial infrastructure would attract cutting-edge technology and boost foreign direct investment and local investment in the sector.
• The Textiles Ministry will oversee the execution of projects in the PM MITRA parks.
• An SPV [Special Purpose Vehicle] owned by the Centre and State Government will be set up for each park which will oversee the implementation of the project.
• The Ministry of Textiles will provide financial support in the form of Development Capital Support up to ₹500 crores per park to the park SPV.
• A Competitive Incentive Support (CIS) up to ₹300 crores per park to the units in PM MITRA Park shall also be provided to incentivise speedy implementation.
• Convergence with other Government of India schemes shall also be facilitated in order to ensure additional incentives to the Master Developer and investor units.
• State governments have offered to provide at least 1,000 acres of land for free for the parks and will also facilitate the provision of all utilities such as power and water.

Excellent Infrastructure and Plug-and-Play Facilities for the Industry:

• The parks will offer excellent infrastructure, plug-and-play facilities, and training and research facilities for the industry.
• Different elements to make all the approvals easier will be considered, and the use of renewable energy will be encouraged in a big way in these parks.
• The PM MITRA parks represent a unique model where the Centre and State Governments will work together to increase investment, promote innovation, create job opportunities, and ultimately make India a global hub for textile manufacturing and exports.

Conclusion:

• The selection of seven states to set up new textile parks under the PM MITRA scheme is a significant step towards boosting the textile sector and creating jobs in India.
• The scheme aims to provide world-class industrial infrastructure, attract investment, and make India a global hub for textile manufacturing and exports.
• The parks' establishment is expected to solve several problems in the sector, such as increased wastage and logistical costs, making India's textile sector more competitive.
• The scheme will help in driving the growth of the Indian economy by boosting the textile industry, which is a significant contributor to the country's GDP.

Source: The Hindu

Mains Question:

Q. PM MITRA scheme is expected to transform the Indian textile industry. Analyse the potential impact of the scheme on the textile sector and its contribution to the overall growth of the Indian economy.