PM MITRA Parks Scheme

Introduction

Ministry of Textiles (MoT) has launched PM Mega Integrated Textile Regions and Apparel Parks (MITRAs) Scheme to strengthen the Indian textile industry by way of enabling scale of operations, reduce logistics cost by housing entire value chain at one location, attract investment, generate employment and augment export potential.

The scheme will develop integrated large scale and modern industrial infrastructure facility for total value-chain of the textile industry for example, spinning, weaving, processing, garmenting, textile manufacturing, processing & printing machinery industry.

These parks are envisaged to be located at sites which have inherent strengths for textile industry to flourish and have necessary linkages to succeed. The scheme envisages to leverage Public Private Partnership model for fast paced implementation in a time-bound manner.

Eligibility & Modalities

1. PM MITRA Parks will be set up on the basis of proposals received from State Governments having ready availability of contiguous and encumbrance-free land parcel of minimum1000 acres. The State Government will transfer land to the Special Purpose Vehicle (SPV) at notional price. The land asset will be used to leverage/attract investment in the PM MITRA parks for development and maintenance of the parks with high standard specifications.
2. SPV will be a legal entity (with 51% equity shareholding of State Government and 49% of Central Government) set up by the State Government for the purpose of implementing the PM MITRA Park Project.
3. The specific modalities for use of the land will be defined in transaction documents namely Request for Qualification (RFQ), Request for Proposal (RFP), Concession Agreement etc., which will be formulated in consultation with the State Government, Department of Economic Affairs, Ministry of Finance, Department for Promotion of Industry and Internal Trade (DPIIT) and NITI Aayog.
4. The selection of PM MITRA Park sites will be done in a two stage selection process on Challenge Method. 
   • Stage 1: Selection of Sites offered by State Governments through Challenge Route: At this stage, expenditure on Constitution of SPV, Planning of PM MITRA parks, Selection of PMA, Development of Model RFQ/RFP& Concession Agreement and Selection of Master Developer will be permitted. The Master Developer (MD) is to be selected by a transparent process and should have adequate capacity and experience. The Master Developer should prepare the detailed project report/Master Plan of the PM MITRA Park including the core Infrastructure: roads, drainage, sewage, solid waste management, treatment plants etc. to be developed. This Master Plan should be approved by the SPV.
   • Stage 2 : Development of the Park: Selected Sites will be released Grants in Aid from MoT for infrastructure development/ construction of PM MITRA parks based on the approved DPR/Master Plan. This will ensure immediate commencement of work at the PM MITRA sites after release of first instalment of Grant.

Funding & Release of Grant under PM MITRA Park Scheme by GOI

The Scheme has a budget outlay of Rs. 4445 Crore including administrative expenses of Rs 30 crore over 7-year period up to 2027-28.

Development Capital Support (DCS):

The Central Government will provide DCS in the form of Grant in Aid (Capital) to the Park SPV. DCS is a support for creation of Core Infrastructure e.g. Internal Road; Power Distribution Infrastructure; Water and Waste Water treatment and other facilities; Development of Plug & Play Infrastructure for Textiles Designers, Apparel Manufacturers, Accessories Manufacturers; Factory Sites; Incubation Centre etc. DCS can also be used for creating Support Infrastructure e.g. Common Processing Facility, Common Effluent Treatment Plant (CETP), Workers’ Hostel & Housing, (Specially for women Worker), Health Facility, Training & Skill Development, Warehousing, Logistics etc..

The DCS will be provided in two Phases:

• Phase I – Rs 300 Cr for Greenfield Park and Rs 100 Cr for Brownfield Park, as per phasing of construction. Concession period will be 25 years till completion of Phase 1
• Phase II – Rs 200 Cr for Greenfield Park and Rs100 Cr for Brownfield Park.

Phase II will be triggered only upon meeting pre-defined Performance Linked Parameters. In case of achievement of required benchmark for triggering Phase II, the concession period will increase by additional 25 years to 50 years.

Competitive Incentive Support (CIS) :

For incentivizing manufacturing units to get established early in PM MITRA Park, there is a provision of Rs 300 Cr per park. Incentive will be provided to manufacturing units up to 3% of the total sales turnover to the unit established in the PM MITRA Park to reduce its cost and offset its disadvantages to a certain extent.

• The CIS will be Fund Limited and it will be available on a first come first serve basis.
• The incentives will only be available to those manufacturing companies who are not availing benefits of Production Linked Incentive (PLI) for Textile Scheme.
• There will be a cap of Rs10 Crore per annum on incentive and a maximum cap of Rs 30 Crore on incentive for one anchor investor company with an investment of Rs 300 Crore or above in its unit in PM MITRA Park.
• There will be a cap of Rs 5 Crore per annum on incentive and a maximum cap of Rs 15 Crore on incentive for one investor company with an investment of Rs 100-300 Crore.
• There will be a cap of Rs 1 Crore per annum on incentive and a maximum cap of Rs 3 Crore on incentive for other investor companies and tenant companies, but they must have employment of 100 persons and above.

Release of GoI Funds

The MoT grant will be released on the basis of progress of the project and matching contribution from Master Developer. The first tranche of Rs 50 Crore will be released after mobilization of Rs 50 Crore by the Master Developer and utilization of minimum Rs 25 Crore for development of some part of core support infrastructure. Further release will be made after utilization of 75% of earlier mobilized resources based on report of PMA along with evidence of commensurate physical progress. Matching contribution of MD and commensurate physical progress at the site will be ensured prior to release of the next tranche.

Separate accounts shall be kept for the funds released by GOI and funds mobilized by the Master Developer and will be subject to audit by the Comptroller & Auditor General of India and any other agency nominated by Ministry of Textiles.

To get details of funds to be released for Greenfield projects, click here.

Project Monitoring

MoT will periodically monitor the progress of the projects under the Scheme. Ministry will appoint a Project Management Agency (PMA) which will act as the Technical Support arm by providing secretarial, managerial and implementation support to MoT for effective implementation of the Scheme.

Project Approval Committee (PAC)

The proposals under the Scheme will be approved by the Project Approval Committee. PAC shall have following composition:

• Secretary Textiles – Chairman
• Financial Advisor, MoT - Member
• AS/JS MoT – Member Convenor
• Representative of NITI Aayog - Member
• Representative of DPIIT – Member

PAC will have the authority to approve the Detailed Project Report (DPR) and accordingly sanction projects; monitor the expenditure under DCS and CIS based on objective criteria. The PAC will also fine-tune the CIS policies such as linking benefits with investment and other objective parameters with the aim of the earliest operationalisation of maximum number of units in PM MITRA Parks. PAC will have the final authority in the matters arising during the operation of the scheme. PAC will be assisted by Project Management Agency.

Submission of Proposals and its Evaluation

The willing State Governments having unencumbered and contiguous land parcel of a minimum of 1000 acre for industrial development will submit project proposal to the Ministry of Textiles. The State Government will provide a Preliminary Project Report for development of PM MITRA Park along with a map of the site and road linkage to the Port/ National Highway/ Dedicated Freight Corridors/ Inland Container Depot/Container Freight Station/ Railway Siding etc. The Preliminary Project Report will explain the potential for industrial development for Textiles Value Chain at the site alongwith details as per selection criteria in Annexure I. The State Government will confirm the permission for industrial land use and commercial land use for 10% of the area. The State will confirm support for Environment Clearance for the project.

Evaluation and Approval Process

Evaluation Criteria for Preliminary Selection of Sites

The proposal will have to provide relevant information on all the criteria specified for evaluation of the proposal. To view the evaluation criteria, click here.

The PMA will examine the Preliminary Project Report and submit its recommendations to the Project Approval Committee for in principle approval.

Finalization of RFQ, RFP & Concession Agreement & selection of Master Developer

The Ministry of Textiles will develop model RFQ, RFP and Concession Agreement for selection of Master Developer in parallel with preliminary selection of sites with the assistance of PMA. After selection of sites, these model documents may have to be tweaked (if required) in consultation with State Governments, NITI Aayog and DEA, Ministry of Finance as per requirement of specific site. After finalization of this process, a MD will be selected for each PM MITRA park site by a transparent process. The work for PM MITRA Park will start as per the terms and conditions finalized in the above mentioned documents. 

Source : Ministry of Textiles