Cabinet okays setting up seven textile parks worth ₹4,445 cr

NEW DELHI: The Union Cabinet on Wednesday approved the setting up of 7 Mega Integrated Textile Region and Apparel (PM MITRA) parks with a total outlay of ₹4,445 crore in the next five years.

Union textiles minister Piyush Goyal informed about the decision after the Cabinet meeting, chaired by Prime Minister Narendra Modi.

He said the move will provide 7 lakh direct and 14 lakh indirect jobs.

“Cabinet approves Productivity Linked Bonus equivalent to 78 days’ wage to eligible nongazetted Railway employees (excluding RPF/RPSF personnel) for financial year 2020-21.About 11.56 lakh non-gazetted Railway employees are likely to benefit from the decision,” the union government said after the cabinet meeting.

PM MITRA textile parks will be developed by a Special Purpose Vehicle, which will be owned by State Government and Government of India in a Public Private Partnership (PPP) mode. “The master developer will not only develop the Industrial Park but also maintain it during the concession period. Selection of this Master Developer will happen based on objective criteria developed jointly by State and Central Governments,” the cabinet said in a statement.

The government claimed that each of these seven parks is expected to generate approximately 100,000 direct and 200,000 indirect employments.

“Government of India will also provide a fund of ₹ 300 Crore for each PM MITRA Park to incentivize manufacturing units to get established. This will be known as Competitiveness Incentive Support (CIS) and will be paid upto 3% of turnover of a newly established unit in PM MITRA Park. Such support is crucial for a new project under establishment which has not been able to break even and needs support till it is able to scale up production and be able to establish its viability,” the union cabinet said.