India’s plan for new textile parks includes a ₹10 crore incentive each year for units with 100 employees
- The Indian government today announced the PM Mitra Yojana to support the textile industry.
- Under the scheme, seven mega integrated textile parks will be set up across the country.
- An outlay of ₹4,445 crore has been estimated for the scheme.
- Check out the latest news and updates on Business Insider.
AdvertisementIn a bid to give a boost to India's textile sector, the government today announced the PM Mitra Yojana (Plan), inviting states across the country to bid for setting up seven mega integrated textile regions and apparel parks.
Addressing a press conference, union ministers Piyush Goyal and Anurag Thakur announced that the PM Mitra Yojana has a total outlay of ₹4,445 crore ($593 million), hoping that it will provide direct employment to 7 lakh people and indirect employment to 14 lakh people.
|Development capital support
|Up to ₹500 crore per greenfield park, ₹200 crore per brownfield park
|Competitive incentive support
|Up to ₹300 crore per park, ₹10 crore per unit per year for 3 years
The new plan has come within a month after the government announced a production-linked incentive (PLI) scheme worth ₹10,683 crore for the textile industry in September, 2021.
These are the highlights of the PM Mitra Yojana, as revealed in the cabinet briefing on Oct 6:
According to Goyal, the scheme is divided into two parts – development capital support and competitive incentive support.
Under the development capital support option, the government will offer to pour in 30% of the total project cost, which is estimated to be around ₹1,700 crore per park. This brings the government’s contribution to ₹500 crore per park.
Goyal further clarified that greenfield parks will get ₹500 crore support, while brownfield parks will get ₹200 crore only.
Greenfield parks refer to those which will be built up from scratch. The term brownfield refers to the expansion or improvement of existing projects.
The second option is competitive incentive support, which aims to provide support to those firms which are the first-movers in these textile parks. This scheme is first-come first-serve for the firms which want to reap the benefits will have to approach the government or the textile park.
Each unit will have to employ a minimum of 100 people to be eligible. Eligible units will get an incentive of ₹10 crore per annum for the first three years.
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