06 September 2022, Mumbai:
Seven mega textile parks will be set up under the Mega Integrated Textile Region and Apparel (MITRA) scheme.
The states where these parks will be set up have almost been finalized but they have been asked to provide a long-term projection for power tariffs that would be charged at these parks. The centre is trying to get a few things from the states by way of concessions and is trying to get states to agree to a better power regime. In some states, the cost of power is quite high, which the centre would like to see reduced. The states have been asked to submit a long-term roadmap— say, 15 years—of the power tariff that would be charged at these textile parks and they have been requested to refrain from raising power charges for 15 years.
The Mega Integrated Textile Region and Apparel scheme was announced in budget 2021 to make the textile industry globally competitive. It was given a budget ofRs 4,445 crores for seven years.
India’s textile and apparel exporters complain that a largely fragmented supply chain and higher logistics costs push up the cost of production—one reason export orders have steadily moved to countries such as Bangladesh and Vietnam. These mega parks are aimed at helping return textile orders as a result of a planned integrated textiles value chain—including spinning, weaving and processing —at a single location.
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