Ministry of Textiles (MoT) has released operational guidelines for PM Mega Integrated Textile Region and Apparel (PM MITRA) parks scheme. With budget outlay of Rs. 4,445 crore, the scheme includes administrative expenses of Rs. 30 crore over 7-year period up to 2027-28.
It aims to strengthen the Indian textile industry by way of enabling scale of operations, reduce logistics cost by housing entire value chain at one location, attract investment, generate employment and augment export potential.
As per the guidelines, the State Government will transfer land to the Special Purpose Vehicle (SPV) at notional price and this SPV will be a legal entity with 51 per cent equity shareholding of State Government and 49 per cent of Central Government.
For incentivising manufacturing units to get established early in PM MITRA Park, there is a Competitive Incentive Support (CIS) provision of Rs. 300 crore per park. This incentive will be provided to manufacturing units up to 3 per cent of the total sales turnover to the unit established in the park to reduce its cost and offset its disadvantages to a certain extent.
The CIS will be fund limited and will be available on a first-come-first-serve basis.
The incentives will only be available to those manufacturing companies who are not availing benefits of Production Linked Incentive (PLI) for textile scheme.
There will be a cap of Rs. 10 crore per annum on incentive and a maximum cap of Rs. 30 crore on incentive for one anchor investor company with an investment of Rs. 300 crore or above in its unit in these parks.
Similarly, there’s a cap of Rs. 5 crore per annum on incentive and a maximum cap of Rs. 15 crore on incentive for one investor company with an investment of Rs. 100-300 crore.
There will be a cap of Rs. 1 crore per annum on incentive and a maximum cap of Rs. 3 crore on incentive for other investor companies and tenant companies, but they must have employment of 100 persons and above.
Gujarat, Tamil Nadu, Rajasthan, Telangana, MP, Bihar and Andhra Pradesh are on their toes to get a park and various trade bodies of these states have made representations in this regard.
Nearest highway from site, distance from air cargo, airport/railhead, distance from sea port/inland waterway/dedicated freight corridor and distance from multi modal logistic park /ICD/CFS will have weightage of 25 per cent.
Existing ecosystem for textiles like distance from existing textile cluster, availability of raw materials and skilled manpower suitable for textiles industry, availability of skill development institutes/research associations/institutes will also have the same weightage of 25 per cent.
Weightage of 20 per cent is there for assurance of availability of good quality power source at the site to support the development and operation of park, assurance for power distribution license for Master Developer for park area along with permission for open access sourcing of power.
The Central Government will provide Development Capital Support (DCS) in the form of grant in aid (Capital) to the Park SPV.
The DCS will be Rs. 300 crore for Greenfield Park and Rs. 100 crore for Brownfield Park, as per phasing of construction. The concession period will be 25 years till completion of phase 1 while in phase 2 Rs. 200 crore for Greenfield Park and Rs. 100 crore for Brownfield Park. DCS is a support for creation of core infrastructure.
Source : https://in.apparelresources.com/