textile park: Cabinet may approve mega textile park scheme on Wednesday
Officials said the scheme could be taken up by the Cabinet and if approved, it will pave the way to set up mega parks with integrated facilities and plug-and-play infrastructure on over 1,000 acres in the next three years, on the lines of China and Vietnam.
“It is likely to be cleared by the Cabinet and some states have already shown interest in setting up the parks,” said an official.
Announced in Budget FY22, the MITRA parks will also have uninterrupted water and power supply, common utilities and research and development labs. They are intended to have and quick turnaround time to minimise transportation losses, aimed to attract big-ticket investments in the sector.
States will have to ensure road connectivity and power availability for the parks.
The parks are crucial to attract foreign direct investment (FDI). From April 2000 to September 2020, India’s textile sector received Rs 20,468.62 crore, or $3.4 billion, of FDI, which is just 0.69% of the total FDI inflows during the period.
Last month, the Union Cabinet approved a Rs 10,683 crore production-linked incentive scheme for man-made fibre segment (MMF) apparel, MMF fabrics and ten products of technical textiles for five years, aimed at boosting domestic manufacturing and exports. This would lead to fresh investments of more than Rs 19,000 crore, according to the government.