ANCHOR INVESTMENTS AND TEXTILE VALUE-CHAIN

Executive Summary The PM MITRA Parks scheme, with an outlay of ₹4,445 crore for the period 2021-22 to 2027-28, aims to establish integrated textile manufacturing hubs across seven Indian states to boost investment and exports. Currently, 100% of the land has been acquired and environmental clearances obtained for all seven sites, with investment interest reaching ₹68,590 crore. Following the Budget 2026-27 announcement of a new Mega Textile Parks scheme, state governments will soon be requested to submit fresh proposals.

Key Points / Main Content

• Scheme Vision and Scope

  • Inspired by the ‘5F’ vision: Farm to Fibre to Factory to Fashion to Foreign.
  • Aims to develop a complete textile value chain, from spinning to garmenting, in a single location.
  • Seven selected states: Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.

• Infrastructure and Facilities

  • Core Infrastructure: Developed factory sites, plug-and-play facilities, incubation centers, roads, power, and water systems.
  • Support Infrastructure: Workers’ hostels and housing, logistics parks, warehousing, medical facilities, and skill development centers.
  • Commercial Component: Up to 10% of park area can be used for shops, offices, malls, hotels, and convention centers.

• Project Status and Progress

  • Agreements: MoUs signed with all states; Joint Venture Agreements signed and Special Purpose Vehicles (SPVs) incorporated for five greenfield sites.
  • Planning: Detailed Project Reports (DPRs) totaling ₹13,537 crore have been finalized for all seven states.
  • Infrastructure Works: External works worth ₹2,736 crore and internal works worth ₹1,720 crore are under development across the sites.

• Future Expansion

  • A new scheme for Mega Textile Parks was announced in the 2026-27 Budget.
  • The government will initiate a proposal submission process for all State Governments in due course.

Impact Analysis

State Governments (Current and Prospective)

• Impact: Seven states are currently managing land and infrastructure development; all states now have the opportunity to participate in a newly announced mega scheme.
• Action Required: State Governments must prepare and submit proposals for the new Mega Textile Parks scheme once the formal request is issued.

Textile Manufacturers and Investors

• Impact: Access to world-class integrated hubs with modern infrastructure, reducing the need for fragmented supply chains.
• Action Required: Monitor the development of plug-and-play facilities and commercial zones to align investment interests with project timelines.

Ministry of Textiles

• Impact: Responsible for the oversight of the ₹4,445 crore outlay and the transition into the next phase of mega-park development.
• Action Required: Formalize the request for proposals from states regarding the Budget 2026-27 announcement.