Central Government released operational guidelines for PM-MITRA

Tags: National News

The Union Ministry of Textiles has released operational guidelines for PM Mega Integrated Textile Region and Apparel (PM MITRA) parks scheme.

• As per the scheme, the state government will transfer land to the Special Purpose Vehicle- a legal entity with 51% equity shareholding of the state and 49% of the centre.

As per the guidelines released by the textiles ministry, the sites for the parks will be selected based on five metrics- 

• connectivity to the site (25% weightage)
• existing ecosystem for textiles (25% weightage)
• availability of utility services at the site (20% weightage)
• state industrial /textile policy
• environmental and social impact.

With a budget outlay of Rs 4,445 crore, the scheme includes administrative expenses of Rs 30 crore over a seven-year period up to 2027-28.

For incentivizing manufacturing units to get established early in PM MITRA Park, there is a Competitive Incentive Support (CIS) provision of Rs 300 crore per park. 

The CIS will be fund-limited and 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 the textile scheme. 

Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh, and Telangana expressed interest to set up PM MITRA Parks. 

Special Purpose Vehicle (SPV)

A special purpose vehicle (SPV) is a legal entity created by a parent company but managed as a separate organization. It is designed to isolate the financial risk of certain assets or ventures of the parent company. Companies create SPVs to securitize assets, make it easier to transfer assets, spread the risk of assets or new ventures, or protect assets from risks associated with the parent company.

Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt.