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Govt aims to boost textile mega-parks with first mover advantage incentives

Updated: Mar 27, 2023 04:37:23pm

Govt aims to boost textile mega-parks with first mover advantage incentives

New Delhi, Mar 27 (KNN) The government has decided to provide factories that are the first to set up at textile mega-parks an incentives of 3 per cent on their revenue, textile secretary Rachna Shah said.

“The Centre will be providing the incentive support to the manufacturing factories that come first. They will be incentivized to the tune of 3 per cent of the revenue. Suppose there is an anchor investor, who brings in investment of Rs 300 crore to a park, then there will be an incentive that can be Rs 10 crore per year with a cap of Rs 30 crore," Shah said in an interview.


Centre had earlier announced that PM MITRA parks will come up in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra.

As per reports, the Union government has discussed a stable power regime for the textile parks and the state’s attitude toward the proposed four labour codes that aim at facilitating ease of doing business by replacing 29 laws.

The secretary pointed out that issues related to the availability of reliable power supply and the quality of power is important for any industrial park and the central government has had discussions about this with the states, reported Mint.

“We’ve discussed in detail with the states about their industrial policy and their textile policy and whether they would be offering any special incentives. Most of the states have their own policy framework for assured power and water supply," she added.

On the proposed labour laws, the official said the Centre has had discussions with the states in terms of their acceptability.

“We have taken note of their existing labour policies as well as their attitude to the four labour codes," Shah added.

The textiles ministry had notified setting up of seven mega textile PM MITRA parks on 21 October 2021 after it was announced in Union Budget for 2021-22.  (KNN Bureau)


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