PM MITRA parks

PM MITRA parks

Subject – Economy

Context – Cabinet clears ₹4,445­cr. textile parks

Concept –

• The Union Cabinet approved the setting up of seven Mega Integrated Textile Region and Apparel (PM MITRA) Parks at an outlay of ₹4,445 crore. The mega parks scheme will include brownfield and greenfield projects, spread over five years.
• The parks would be developed by a Special Purpose Vehicle (SPV) owned by the Central and State governments and would get two kinds of support. Development Capital Support, aimed at helping develop infrastructure, would fund 30% of the project cost with a cap of ₹500 crore for greenfield projects and ₹200 crore for brownfield projects. A separate Competitiveness Incentive Support would be limited to ₹300 crore per park.
• States offering the cheapest land (contiguous and encumbrance-free land of minimum 1,000 acres) and facilities such as adequate electricity and water would be selected through a transparent challenge route.
• The SPV would select a Master Developer to set up and maintain the park for a specified period. Of the park’s area, 50% would be earmarked for manufacturing activity, 20% for utilities, and 10% set aside for commercial development.
  • A master developer will be selected on objective criteria developed by the State and Central government and will not only develop the industrial park, but also maintain it during the concession period.
• Industries in the parks would comprise four categories — units investing ₹300 crore or more, units investing ₹100-300 crore, investors of less than ₹100 crore and tenant units.
• These parks will be developed by a special purpose vehicle owned by State governments and Central government in a public-private partnership.