Two PM MITRA PPP Projects Cleared, Set to Attract ₹20,000 Crore Investment

Lucknow and Navsari PM MITRA parks move closer to implementation as appraisal panel clears bid documents under the PPP model

The Public Private Partnership Appraisal Committee (PPPAC) has approved the bid documents for two proposed PM MITRA textile parks under the Centre's flagship scheme, paving the way for the launch of the bidding process.

The proposed greenfield integrated textile parks will be established at Lucknow in Uttar Pradesh and Vansi in Gujarat's Navsari district through the Design, Build, Finance, Operate and Transfer (DBFOT) model. The projects are intended to develop integrated manufacturing ecosystems spanning the entire textile value chain, attract large-scale private investment and generate employment.

Each park is expected to attract an investment of around ₹10,000 crore and create approximately 100,000 direct and 200,000 indirect jobs. The concession period for both projects has been fixed at 50 years.

The Lucknow PM MITRA Park will be developed over 1,000 acres through a special purpose vehicle jointly owned by the Central government and the Uttar Pradesh government, with equity participation of 49% and 51%, respectively. The project is estimated to require a capital expenditure of ₹1,946.92 crore to develop infrastructure, plug-and-play facilities, common utilities, housing and logistics infrastructure.

The Gujarat PM MITRA Park at Vansi in Navsari district will be developed over 1,142 acres through a similar joint venture between the Centre and the state government. The estimated project cost is ₹3,209 crore, including investments in civil infrastructure, common effluent treatment facilities, power infrastructure, commercial facilities and logistics.

During the appraisal process, the PPPAC recommended several refinements to strengthen the concession framework before issuing the bid documents.

These recommendations included changes to the bidding eligibility criteria, mid-term performance assessment milestones, incorporation of payment mechanisms, termination payment provisions, user charge regulations and technical specifications for common infrastructure, including common effluent treatment plants and zero-liquid discharge systems.

The committee also discussed safeguards to ensure sustained project development throughout the concession period by reducing developers' dependence on upfront land monetisation.

Project authorities accepted several recommendations, including greater clarity in technical specifications, uniformity in qualification criteria and improved provisions relating to termination payments.

The PM MITRA scheme aims to establish integrated textile parks with world-class manufacturing facilities, plug-and-play infrastructure, common utilities, warehousing, logistics support and skill development centres. The initiative is intended to strengthen India's position as a global hub for textile and apparel manufacturing.

The PM MITRA parks at Lucknow and Vansi will be implemented through the Public-Private Partnership (PPP) model for the first time.