Lok Sabha Question No. 1210 (UNSTARRED), answered on 2022-02-09
Subject: Setting up of Textile Parks by Private Entrepreneurs
Ministry: TEXTILES
Asked by: Jual Oram

## LOK SABHA UNSTARRED QUESTION NO. 1210 TO BE ANSWERED ON 09.02.2022

## SETTING UP OF TEXTILE PARKS BY PRIVATE ENTREPRENEURS

## 1210. SHRI JUAL ORAM:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

(a) the details of the number of textiles parks proposed to be set up in different States, both by public and private sector;

(b)  the  financial  assistance  proposed  to  be  extended  to  the  private  entrepreneurs  to  set  up  the  textile parks;

(c) the terms and conditions laid down for the same; and

(d) the subsidies proposed to be provided to the private entrepreneurs?

## उत्तर

## ANSWER वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

## THE MINISTER OF STATE FOR TEXTILES (SMT. DARSHANA JARDOSH)

(a) to (d): With an objective to provide financial assistance to a group of entrepreneurs to establish state-of-the-art  infrastructure  facilities  in  a  cluster  for  setting  up  their  textile  units,  confirming  to international environmental and social standards and thereby mobilize private investment in the textile sector  and  generate  fresh  employment opportunities, the government has been implementing Scheme for Industrial parks (SITP) since 2005.

For each park, there is a Special Purpose Vehicle (SPV) formed by the representatives of local industry, financial  institutions,  State  industrial  and  infrastructural  corporations  and  other  agencies  of  State  and Central  Governments.    The  SPV  is  registered  under  the  Companies  Act.    The  project  cost  covers common  infrastructure  and  buildings  for  production/  support  activities  (including  textile  machinery, textiles engineering, accessories, packaging) depending on the need of textile park.

The  total  financial  support  by  GoI  is  limited  to  40%  of  the  project  cost  subject  to  a  maximum  of Rs.40  crores.    However,  support  will  be  provided  @90%  of  the  project  cost  subject  to  a  ceiling  of Rs.40  crores  for  first  two  projects  (each)  in  the  States  of  Arunachal  Pradesh,  Assam,  Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim, Himachal Pradesh, Uttarakhand and UT of Laddakh and UT of Jammu & Kashmir.

Recently, the Government has approved setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites to develop world class infrastructure including  plug  and  play  facility  with  an  outlay  of  Rs.4445  Crore  for  a  period  of  seven  years  upto 2027-28. The PM MITRA Parks Scheme shall be implemented on pan-India basis and is intended for holistic development of the textile sector. The   willing state governments having ready availability of contiguous and encumbrance-free land parcel of 1000+ acres are eligible to apply under the Scheme. It is  envisaged  to  be  on  Public  Private  Partnership  (PPP)  mode.  There  is  a  provision  of  Development Capital Support (DCS) @30% of the project cost with a maximum support of Rs.500 Cr and Rs.200 Cr per park for Greenfield and Brownfield  PM  MITRA  Park,  respectively  for  creation  of core Infrastructure.   Chief Secretaries of all State Governments have been requested to send proposals for setting up PM MITRA Parks in their respective states by 15.3.2022.