SPVs for PM MITRA parks to boost Textile Sector

26 December, 2023: The Government is approaching the concluding stages of establishing Special Purpose Vehicles (SPVs) for the Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) parks, in an effort to elevate the textile sector.

Two officials, aware of the developments, revealed that all formalities for the SPVs are set to conclude early next year, as reported by Media.

Government to finalise all SPVs for PM MITRA parks to boost textile sector in 2024

Seven locations – Virudhunagar, Tamil Nadu; Warangal, Telangana; Navsari, Gujarat; Kalaburagi, Karnataka; Dhar, Madhya Pradesh; Lucknow, Uttar Pradesh; and Amravati, Maharashtra – will host the planned PM MITRA parks.

According to one of the two officials, SPVs have already been established in Gujarat and Uttar Pradesh, while the last phases of creation have been started in Madhya Pradesh, Tamil Nadu, Telangana, Maharashtra, and Karnataka.

The responsibility of overseeing the execution of PM MITRA park projects through SPVs, which are jointly constituted by the central and state governments for every park, falls on the Ministry of Textiles.

According to the second official, the financial structure calls for the federal government to pay for 49 per cent of the project’s cost, with the participating state governments providing the remaining 51 per cent of the equity through paid-up capital.

The Textile Ministry plans to allocate Rs 800 crore for greenfield projects and Rs 500 crore for brownfield efforts in order to assist the PM MITRA parks. For the planned mega textile parks, each state government would also modernise utility infrastructure and donate land.

Leaders in the industry are upbeat about PM MITRA parks’ ability to completely change the textile industry by building world-class infrastructure.