Budget’s textile boost: 7 mega textiles parks to be setup in 3 years
New Delhi: In a move to make the country’s textile sector a manufacturing and export hub, and create global export champions, India will set up seven textile parks over three years under the scheme of mega investment textile parks which was announced in Budget FY22 on Monday. The parks to be setup over 1,000 acres of land with world class infrastructure, and plug-and-play facilities, will be addition to the Rs 10,683-crore production linked incentive (PLI) scheme for technical textiles and manmade fibre.
“A scheme of mega investment textile parks will be launched in addition to the PLI scheme,” finance minister
Nirmala Sitharaman said in her Budget speech.
Budget BannerThe textiles ministry has proposed to develop seven Mega Integrated Textile Region and Apparel (MITRA) parks as part of a plan to double the industry size to $300 billion by 2025-26 aimed to position India as a fully integrated, globally competitive manufacturing and exporting hub. The parks are targeted to have uninterrupted water and power supply, common utilities and
research and development labs.
Similar parks already exist in China, Vietnam and Ethiopia where the entire textiles value chain is covered.
India has already sanctioned 59 textile parks under the Scheme for Integrated Textile Parks (SITP), of which 22 have been completed. However, their slow progress due to delays in obtaining land and other statutory clearances from state governments and tardy fund mobilisation, have prompted the government to develop MITRA parks.
Under the SITP, which was launched in 2005, infrastructure for textile units was to be developed in a public-private partnership model, with the government granting up to 40% of the project cost, subject to a ceiling of Rs 40 crore for each park.
Source: The Economic Times, India Tuesday, 02 February 2021