Textile mega parks to get infra developers soon

Each textile park is expected to be of 1,000 acres in area. (Photo: Reuters)
Each textile park is expected to be of 1,000 acres in area. (Photo: Reuters)

Summary

  • Master developers are infrastructure development companies, which will be given the mandate to develop all parks with their own investment

NEW DELHI : The selection of infrastructure developers for seven mega-textile parks will be completed by the end of March, two officials said, as India makes a push for becoming a textile manufacturing hub.

These so-called master developers will build the seven parks—under the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) scheme—with an investment of 12,000 crore.

They will be selected by the union textiles ministry.

Master developers are infrastructure development companies, which will be given the mandate to develop all parks with their own investment.

These master developers will be selected through a tender. As an incentive, each developer will get 100-acre piece of land on a 99-year lease for ‘commercial exploitation’ in each textile park.

Before floating the tender, the textile ministry will conduct a round-table with stakeholders, one of the officials said.

As per the guidelines of textile parks, the Centre will provide 500 crore to the master developers, which will then invest around 1,200 crore to create plug-and-play facilities in each textile park.

Each textile park is expected to be of 1,000 acres in area.

PM MITRA parks refer to plug-and-play facilities for textile businesses offered by the Centre and state governments to increase investment, promote innovation, create job opportunities and make India a global hub for textile manufacturing and exports.

These parks can play a pivotal role in catalyzing scale in the textile industry and boosting exports. Discussions on the request for proposal (RFP) document is currently underway, with three rounds of inter-ministerial deliberations already completed.

The seven parks will come up in Virudhnagar (Tamil Nadu), Warangal (Telangana), Navsari (Gujarat), Kalaburagi (Karnataka), Dhar (Madhya Pradesh), Lucknow (Uttar Pradesh), and Amravati (Maharashtra).

The special purpose vehicles (SPVs) for Gujarat, Uttar Pradesh, Madhya Pradesh, and Tamil Nadu have been finalized, and they will soon be asked to float tenders to engage master developers.

Land for the parks will be provided by the respective state government.

Queries mailed on 22 January to the textiles secretary, and spokesperson of the textiles ministry remained unanswered till press time.

The government is aiming to position itself as a textile sourcing and investment destination through the seven parks with an investment of 70,000 crore in the next five years.

The domestic apparel & textile industry contributes about 2.3% to the country’s GDP, 13% to industrial production, and 12% to exports.

Holding a 4% share in the global textiles and apparel trade, India’s total export value in textiles reached $24.70 billion in the first nine months of the fiscal year 2023 (April-December). India ranks among the top global producers of cotton and jute and is the world’s second-largest silk producer, and accounts for 95% of the world’s hand-woven fabrics.

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