Centre prepares to select projects for textile mega parks

The Centre, ahead of approving proposals for mega textile parks, has asked states to provide a long-term projection for power tariffs that would be charged at these parks, a government official said.

The scheme, known as Mega Integrated Textile Region and Apparel (PM MITRA), was announced in Budget 2021 to make the textile industry globally competitive. It was given a budget of ₹4,445 crore for seven years up to 2027-28. Seven such parks are due to be approved. “We have almost finalized the states where mega textile parks will be set up. But we are trying to get a few things from the states by way of concessions. We are trying to get states to agree to a better power regime. In some states, the cost of power is quite high and we are trying to get it reduced. They have been asked to give us a long-term roadmap— say 15 years—of the power tariff that will be charged at these textile parks. We are telling them to refrain from raising power charges for 15 years but we are looking for some kind of a projection regarding the same,” an official said. India’s textile and apparel exporters complain that a largely fragmented supply chain and higher logistics costs push up the cost of production—one reason export orders have steadily moved to countries such as Bangladesh and Vietnam. These mega parks, textile makers say, could help return textile orders as a result of a planned integrated textiles value chain—including spinning, weaving and processing —at a single location. Among the states that have shown interest are Andhra Pradesh, Assam, Gujarat, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu and Telangana.

“About 13 states had sent 18 proposals for the textile park. But Punjab did not fulfil the criteria of providing 1,000 acres of litigation/encumbrance-free land. Madhya Pradesh has sent four proposals, and Maharashtra and Karnataka sent two each. We will most likely select only one proposal from each state,” the official added.

Last month, the Punjab government scrapped the textile park proposal near Ludhiana after locals and NGOs claimed the project would cause water pollution. CM Bhagwant Mann said the state will would provide an alternative land parcel.

ravi.dutt@livemint.com