Textile Ministry Forms Special Purpose Vehicle For Two PM MITRA Parks, Targets Early 2024 Deadline On Remaining Five Parks

The Ministry of Textiles is in the final stages of creating special purpose vehicles for the seven Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) parks announced earlier this year.

The PM-MITRA scheme, first announced in the union budget 2021-22, aims to develop integrated large-scale and modern industrial infrastructure facility for the entire textile value chain, from fiber to fabric to garment.

Subsequently, in March this year, the Centre announced the setting up of mega textile parks, in seven States - Tamil Nadu, Karnataka, Telangana, Madhya Pradesh, Maharashtra, Gujarat, and Uttar Pradesh, under the Rs 4445-crore PM MITRA scheme, to boost the textile sector. 

These parks are set to come up at Virudhunagar in Tamil Nadu, Kalaburagi (Karnataka), Warangal (Telangana), Dhar (Madhya Pradesh), Amravati (Maharashtra), Navsari (Gujarat) and Lucknow (Uttar Pradesh), with all these locations selected using the “Challenge Method”.

The scheme that seeks to streamline the textile value chain into one ecosystem, from spinning, weaving, and dyeing to printing and garment manufacturing, is expected to generate investments worth Rs 70,000 crore. It would also lead to the creation of 20 lakh jobs, according to Commerce & Industry and Textiles Minister Piyush Goyal.

As per the scheme guideline, the textile ministry has been tasked with implementing all the PM MITRA park projects through a special purpose vehicle (SPV), jointly owned by the central and state governments. All such SPVs will be a legal entity with 51 per cent equity shareholding of the state government and 49 per cent of the central government.

All formalities to establish SPVs will conclude early next year, a Live mint report said, quoting two officials aware of the development.

It should be noted that while replying to a question in Lok Sabha last week, Union Minister of State for Textiles, Darshana Jardosh informed that while SPV has been incorporated in Uttar Pradesh and Gujarat, the process of SPV formation in Madhya Pradesh and Tamil Nadu is at an advanced stage of incorporation. Process for SPV formation in other states has been initiated, she added.