Incentives for first movers to textile parks

NEW DELHI?: Factories that are the first to set up at textile mega-parks will get incentives of 3% of their revenue, textile secretary Rachna Shah said.

The mega-parks, announced under the??4,445-crore PM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme are to come up in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra.

“The Centre will be providing the incentive support to the manufacturing factories that would come in first -- the first movers. They will be incentivized to the tune of 3% of the revenue. Suppose there is an anchor investor, who brings in investment of??300 crore to a park, then there will be an incentive that can be??10 crore per year with a cap of??30 crore," Shah said in an interview.

Moreover, the Union government has discussed a stable power regime for the textile parks and the state’s attitude toward the proposed four labour codes that aim to facilitating ease of doing business by replacing 29 laws.

Changes in labour laws are expected to have a major bearing on the mega parks as textile is a labour intensive sector. The parks alone are expected to employ 2 million workers.

The Economic Survey had stated that new laws are in tune with the changing labour market trends and, at the same time, accommodate the minimum wage requirement and welfare needs of unorganized workers, including self-employed and migrant workers.

The secretary said issues related to the availability of reliable power supply and the quality of power is important for any industrial park and the central government has had discussions about this with the states.

Source: www.livemint.com