Karnataka: CM Bommai Launches Kalaburagi Mega Textile Park Under PM-MITRA Scheme, To Be Set Up In 1550 Acres Land At Cost Of Rs 1834 Crore

Chief Minister Basavaraj today (March 28) laid the foundation stone for Karnataka's mega textile park at Kalaburagi district that will set up under thePM Mega Integrated Textile Regions and Apparel (PM MITRA) scheme. 

The mega textile park will come up on 1,550 acres of land, and the total cost of the infrastructure development of the park will be Rs 1,834 crore.

The park will have plug-and-play manufacturing facilities and all the common amenities, including effluent treatment plants, accommodation for workers, skill training centres and warehouses. The park is envisioned to attract investment from companies looking to scale up, requiring integrated manufacturing facilities in one location.

Kalaburagi Mega Textile Park

CM Basavaraj Bommai-led BJP government has already earmarked 1,550 acres of land in Firozabad, Nadisinnur, and Kiranagi villages in Kalaburagi district. 

Over 1,000 acres of the land have already been transferred to the Karnataka Industrial Development Board, which is the agency to develop the infrastructure facilities for the textile park. 

Addressing the gathering during the launch, CM Bommai said that besides boosting the textiles sector in line with the 5F (Farm to Fibre to Factory to Fashion to Foreign) vision, the mega textile park would also benefit the local ancillary industries.

CM Bommai expressed optimism that the ambitious project will help stem migration from Kalyana Karnataka region to big cities such as Hyderabad and Mumbai in search of livelihood options by generating jobs for the local people.

Bommai said that the textile industry is the third primary industry in the country in terms of employment generation after the energy and coal industries.

Bommai predicted that Kalaburagi will emerge as a major investment location consider its strategic location and infrastructure including connectivity.

"Over 1 lakh people will get direct employment from this mega textile park," according to Kalaburagi MP Dr Umesh Jadhav.

Union Minister For Textiles, Commerce and Industry Piyush Goyal participated in the event virtually. Union Minister Of State For Textiles Darshana Jardosh, Union Minister of State for Chemicals and Fertilizers Bhagawanth Khuba, State Minister for Large and Medium Industries Murugesh Nirani, Kalaburagi MP Dr.Umesh Jadhav, among others, were present during the occasion.

Funding and Execution 

On March 17, the Union Government announced seven mega textile parks under the Rs 4,445-crore PM MITRA scheme. 

Under the first phase of the PM MITRA scheme, large textile parks spread across at least 1,000 acres.

The mega textile will come up in seven States —Tamil Nadu, Karnataka, Telangana, Madhya Pradesh, Maharashtra, Gujarat, and Uttar Pradesh — housing the entire textile value chain, from fibre to fabric to garments.

The Ministry of Textiles will oversee the execution of the mega textile park projects.

A special purpose vehicle (SPV) owned by the Centre and State Government will be set up for setting up and operationalising each park.

The Ministry of Textiles will provide financial support through development capital support up to Rs. 500 crores to the Park SPV.

A competitive incentive Support (CIS) of up to Rs 300 crore per park to the units in PM MITRA Park shall also be provided to incentivise speedy implementation.

State governments will be responsible for providing contiguous and encumbrance-free land parcels of at least 1000 acres of land. They will also facilitate the provision of all utilities, a reliable power supply and water availability and waste disposal system, and an effective single window clearance system.

Selection Process

Seven sites were chosen out of 18 proposals for PM MITRA parks which were received from 13 States.

Eligible states and sites were evaluated using the 'Challenge Method' based on a set of criteria, including connectivity, existing ecosystem, textile/industry policy, infrastructure, utility services etc. PM Gati Shakti- National Master Plan for Multi-modal Connectivity was also used for validation.

On October 13, 2021, Karnataka government submitted an initial proposal to the Union government requesting setting up of a park in Kalaburagi, Tumakuru and Vijayapura. The state government finally narrowed down the choice for the location of the mega textile park to Kalaburagi