Govt In Final Stages Of PM MITRA Park SPVs To Boost Textile Sector

New Delhi, Dec 26 (KNN) The government is approaching the concluding stages of establishing Special Purpose Vehicles (SPVs) for the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) parks, in an effort to elevate the textile sector.

Two officials, aware of the developments, revealed that all formalities for the SPVs are set to conclude early next year, as reported by Mint.

The proposed PM MITRA parks are going to emerge in seven locations: Virudhunagar in Tamil Nadu, Warangal in Telangana, Navsari in Gujarat, Kalaburagi in Karnataka, Dhar in Madhya Pradesh, Lucknow in Uttar Pradesh, and Amravati in Maharashtra.

SPVs have already been incorporated in Gujarat and Uttar Pradesh, with the final stages of SPV setup initiated in Madhya Pradesh, Tamil Nadu, Telangana, Maharashtra, and Karnataka, one of the two officials said.

The Ministry of Textiles is entrusted with supervising the implementation of PM MITRA park projects through SPVs, jointly established by the central and state governments for all parks.

The funding structure involves the central government covering 49 per cent of the project cost, while the participating state governments will contribute the remaining 51 per cent in equity through paid-up capital, the second official added.

To support the PM MITRA parks, the Textile Ministry is set to provide Rs 800 crore for Greenfield projects and Rs 500 crore for brownfield initiatives.

Additionally, each state government will contribute land and upgrade utility infrastructure for the proposed mega textile parks.

Industry leaders express optimism regarding the transformative potential of PM MITRA parks in creating world-class infrastructure for the textile sector.

Kulin Lalbhai, Chairman of CII National Committee on Textiles & Apparel, acknowledges the ambitious vision of PM MITRA parks, emphasising their potential to facilitate growth through plug-and-play facilities with a focus on sustainability.

Despite the positive outlook, Raja M Shanmugam, former President of Tirupur Exporters' Association, calls for attention to the comprehensive growth of Micro, Small, and Medium Enterprises (MSMEs) in the textile segment.

Shanmugam appreciates the advanced scheme of PM MITRA parks but warns against limiting the benefits to large players, emphasising the need for sustained support to MSMEs for overall industry and startup growth.

India, with an ambitious outlay of Rs 70,000 crore for the next five years, aims to position itself as a sourcing and investment destination for textiles through PM MITRA parks.

While aggressively pursuing Free Trade Agreements (FTAs) to boost exports, the country faces challenges such as muted demand due to high interest rates in Western markets.

Despite these challenges, India's merchandise exports to countries with regional and FTAs have consistently grown over the past decade.

(KNN Bureau)