Coimbatore 17th March 2023
SIMA Thanks Hon’ble Prime Minister for Allocating Three PM MITRA Mega Parks for South India
The Indian textiles & clothing industry, the second largest employment provider next only to agriculture, could not achieve the envisaged growth mainly due to inadequate scale of operation in the country. The Government has been historically announcing several schemes to support MSMEs. Certain State Governments in their textile and industrial policies started encouraging scale of operation in recent years. Competing countries like China, Bangladesh, Vietnam, etc., encouraged scale of operation and could meet the demands of global brands and thereby achieved the phenomenal growth pushing back India from the second position to sixth position in the recent years in terms of global textile trade.
Considering the need to improve the scale of operation and create complete textile value chain facilities at a single place, the Central Government had earlier announced Mega Integrated Textile Region and Apparel Parks (MITRA) in the Union Budget 2021 and the Cabinet Committee had approved seven PM-MITRA parks with a total outlay of Rs.4445 crores for a period of five years during October 2021. The minimum land area specified for the park is 1000 acres for the development of a world-class industrial estate with plug and play facilities. The scheme extends 30% of the project cost with a cap of Rs.500 crores per park for green field projects and Rs.200 crores for brownfield projects as Development Capital Support and Rs.300 crores per park as Competitiveness Incentive Support which will greatly help the new projects to breakeven and gain global competitiveness from the first year. Today, the Hon’ble Prime Minster has announced the allocation PM MITRA parks to seven States.
In a Press Release issued here today, Mr. Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA) has thanked the Hon’ble Prime Minister, Shri Narendra Modi and Hon’ble Union Textile Minister, Shri Piyush Goyal for allocating three parks for Southern States viz., Tamil Nadu, Telangana and Karnataka considering the unique capabilities of these States apart from allocating four parks each one to Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh. He also appreciated the Hon’ble Chief Ministers of the three Southern States for making considerable efforts in bringing the mega park to their States. Mr. Ravi Sam has particularly thanked the Hon’ble Chief Minister of Tamil Nadu, Thiru. M.K. Stalin, Hon’ble Industries Minister, Thiru.Thangam Thennarasu and Hon’ble Handlooms and Textiles Minister, Thiru.R. Gandhi for their tireless efforts in getting a mega park for Tamil Nadu.
Mr. Ravi Sam has said that Tamil Nadu that accounts 1/3rd of the country’s textile business size already attracted seven parks under the Scheme for Integrated Textile Parks (SITP). He has said that this announcement would further strengthen Karnataka which has prominence in readymade garment manufacturing activities and Telangana which has been the third largest cotton producing State in the Country and having one of the attractive state textile policies in attracting new investments.
Mr. Ravi Sam has said that the PM MITRA mega textile park scheme would aim at increasing the scale of operation and value-addition by providing unique infrastructure facility for textile processing, the weakest link in the whole textile value chain. SIMA Chief has stated that the industry started reviving from the long-drawn recession owing to various proactive policy initiatives of the Government including the fast progress in Free Trade Agreements, PLI scheme, RoDTEP scheme, National Technical Textile Mission, etc. Mr. Ravi Sam has concluded that the allocation of PM MITRA parks to seven States would boost the textiles sector in line with Government’s 5F (Farm to Fibre to Factory to Fashion to Foreign) vision and enable the industry to achieve the envisage textile business size of USD 350 Bn by 2030.