Five metrics to decide sites is Released by Government: PM MITRA

The government has released operational guidelines for PM Mega Integrated Textile Region and Apparel (PM MITRA) parks scheme as per which the state government will transfer land to the Special Purpose Vehicle- a legal entity that holds the share worth 51% equity of the state and 49% of the center.

As per the guidelines released by the textiles ministry, the sites for the parks will be selected on the basis of five metrics- connectivity to a site, the existing ecosystem for textiles, availability of utility services at the site, state industrial /textile policy, and environmental and social impact.
The nearest highway from the site, distance from air cargo, airport/railhead, distance from seaport/inland waterway/dedicated freight corridor, and distance from multi-modal logistic park /will have a weightage of 25%. Similarly, the existing ecosystem for textiles like distance from existing textile clusters, availability of raw materials and skilled manpower suitable for the textiles industry, availability of skill development institutes/research associations/institutes will also have a 25% weightage. A 20% weightage will be given for assurance of availability of good quality power source at the site to support the development and operation of the park, assurance for power distribution license for Master Developer for park area along with permission for open access sourcing of power.

“The selection of PM MITRA Park sites will be done in a two-stage selection process on Challenge Method,” the ministry said.

In the first stage, expenditure on the constitution of SPV, planning of the parks, project management agency selection, model Request for Qualification/Request for Proposal Development, Concession Agreement, and Selection of Master Developer will be permitted. “The selection of PM MITRA Park sites will be done in a two-stage selection process on Challenge Method,” the ministry said.

In the first stage, expenditure on the constitution of SPV, planning of the parks, project management agency selection, model Request for Qualification/Request for Proposal Development, Concession Agreement, and Selection of Master Developer will be permitted.
“The Master Developer is to be selected by a transparent process and should have adequate capacity and experience,” the ministry said.

It should prepare the detailed project report/Master Plan of the PM MITRA Park including the core infrastructure of roads, drainage, sewage, solid waste management, and treatment plants to be developed. This Master Plan should be approved by the SPV.
The second stage involves the development of the park once the first installment of the grant to the selected sites is released.

“Phase-II development will be triggered once land occupancy by the construction of minimum 60% of planned development in industry/processing area,” it said, and added that one of following conditions are simultaneously met- cumulative investments of Rs 1000 crore made at the PM MITRA Park, and cumulative annual employment of 25000 people generated at PM MITRA Park.

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. This incentive will be provided to manufacturing units up to 3% of the total sales turnover to the unit established in the park to reduce its cost and offset its disadvantages to a certain extent.

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.
There will be a cap of Rs 10 crore per annum on the 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 these parks.

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, the ministry said. Tamil Nadu, Punjab, Odisha, Andhra Pradesh, Gujarat, Rajasthan, Assam, Karnataka, Madhya Pradesh, and Telangana expressed interest to set up PM MITRA Parks. The center will provide Development Capital Support in the form of grants in aid (capital) to the Park SPV.