Rachna Shah, the union textiles secretary, stated that the institutional framework for starting construction in two mega parks in Tamil Nadu and Karnataka will be ready in three months, almost a month after the centre announced its decision to create seven mega textile parks under the PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme. According to Ms. Shah, the Center has requested that the States move quickly to create a Special Purpose Vehicle (SPV) and choose a master developer to carry out the plan.
According to The Hindu, Ms. Shah stated that the SPV, which would be created between the States and the Centre for each park, will serve as the organisation in charge of directing the park’s execution. We’ve signed,” Memoranda of Understanding (MoU) between Karnataka and Tamil Nadu. In due time, further MoUs will be signed. A master developer would be chosen by the SPV in turn. Mega parks with at least 1,000 acres are these. Core infrastructure will be developed on 50% of the parks’ land. There will be both standard and specialised facilities for things like testing, skill development, and logistical planning. 10% of the area may be for commercial purposes. The master developer will conceptualise and draught the development plan for the park that includes these components, according to Ms. Shah.
According to the Textiles Secretary, investors have already expressed interest in the parks. “It’s just getting started. Big and small investors from India and overseas will be contacted by us. The Tamil We have investors who have expressed interest in a 1,100 crore investment in Nadu. Each park should be able to attract an investment of roughly Rs. 10,000 crore. Investment interest in the amount of $1,900 crore has been expressed in Karnataka. With a few of the investors, the State has a Memorandum of Understanding. We anticipate that each park will provide a million jobs,” she continued.
According to Ms. Shah, the manufacturing will have an incentive to bring their full value chain to the park. “There isn’t any particular reason to move to this park. Yet, it will aid in the consolidation of their investment. These parks will handle all permissions, she assured.
But, Ms. Shah could not provide a date for start up businesses or production in these parks. “Putting a timeline is challenging. It won’t take more than one to one and a half months to construct the SPV. We have requested that the State governments speed up the search for the master developer. We anticipate having the fundamental institutional framework in place in two to three months, at which point we can go on to the specific planning of each park, she said.
Nevertheless, the Center will only distribute funds if certain deadlines and deliverables have been met. A maximum of 500 crore rupees in assistance from the Center is offered, amounting to 30% of the project’s cost. “This funding will be made available in installments based on the progress. We will be in operation till 2026–2027. The SPV formation will take place right away. The infrastructure payment will begin as soon as the master developer is on board and the construction is underway, she said.
About the type of master developer, she said it might be an anchor investor with experience in the textile industry, a company that creates parks or infrastructure. Also, there could be different developers for each of the projects. The decision will fall to the SPV. One master developer is the preferable choice, according to Ms. Shah.
