Ludhiana, May 9
Seven mega industrial estates will come up under the entire textile value chain, touted as Textile Park, at the cost of Rs 4,445 crore, in the district, the government has confirmed.
The ambitious industrial project, which has been approved under the PM Mitra scheme, will be set up over 1,000 acres of land at Koom Kalan village in the industrial capital of the state as a joint venture between the Centre and Punjab, the officials have said.
Sharing details, Director-cum-Secretary, Industries and Commerce, Sibin C told The Tribune that the project will be established over a period of five years up to 2027-28 at the cost of Rs 4,445 crore, which has been approved under the scheme.
He said a special purpose vehicle (SPV) with 51 per cent equity from the Punjab Government and 49 per cent from the Central Government will be set up by the state government for implementing the PM Mitra scheme project. The state government will transfer the land at notional price to the SPV.
Of the total 1,000 acres being offered by the state government for Textile Park, the Greater Ludhiana Development Authority (GLADA), is owner and in possession of 957.39 acres of land, of which, 81.06 acres of land is under judicial proceedings. “The remaining land will be acquired by GLADA and will be made available before the commencement of the project,” he disclosed.
A project approval committee, comprising Union Textiles Secretary and Union Textiles Ministry Financial Adviser as members, Union Textiles Additional Secretary/Joint Secretary as member convener, and representatives of the Niti Aayog and Union Department of Industry and Internal Trade (DPIIT) as members, has been constituted to approve the proposals received for the setting up of units at Textile Park.
Divulging the support from the Centre for the mega industrial project, Sibin said the Union Government will extend Development Capital Support (DCS) at 30 per cent of the project cost with a maximum of Rs 500 crore for greenfield projects and Rs 200 crore for brownfield projects.
“The DCS will be towards creation of core infrastructure, such as roads, power, water and support infrastructure, such as common processing house, CETP, workers’ housing, logistics facilities and medical facilities,” he disclosed.
Under the Competitive Incentive Support (CIS), an outlay of Rs 300 crore has been earmarked for Textile Park, which will be incurred towards giving incentive at the rate of 3 per cent of sales turnover of manufacturing facilities in the park on first-come first-serve basis. “The eligible factory will not be availing incentives in the PLI scheme of the Centre and the incentive will be available till the funds under this head are available with the PM Mitra project,” the Director-cum-Secretary Industries and Commerce revealed.
Putting an incentive capping, the government will offer Rs 10-30 crore for investment over Rs 300 crore, Rs 5-15 crore for investment between Rs 100-300 crore, and Rs 1-3 crore for investment of less than Rs 100 crore with an employment generation of over 100 employees.
The Ministry of Textiles will develop model RFQ, RFP and concession agreement for selection of master developer in parallel with preliminary selection of sites with the assistance of PMA. “After selection of sites, these model documents can be tweaked, if required, in consultation with the state governments, Niti Aayog and Department of Economic Affairs (DEA), and Ministry of Finance as per requirement of specific site,” Sibin informed, while adding that after finalisation of this process, a MD will be selected for the Textile Park site through a transparent process.
Textile Park to comprise seven mega industrial estates
Project cost: Rs 4,445 crore
Area: 1,000 acres
Completion target: Five years by 2027-28
Ownership: Joint venture between Punjab 51% and Centre 49%
- The work on Textile Park will start as per the terms and conditions finalised by the Centre in consultation with Punjab.
- The site for Textile Park is located at Koom Kalan. The land parcel offered by the state government has a total area of 1,000 acres.
- Of the total 1,000 acres project area, 957.39 acres of land is owned and in possession of GLADA, while 81.06 acres of land is under judicial proceedings. The remaining land will be acquired by GLADA and will be made available before the commencement of the project.
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