Several textile stocks gained on Thursday after the Union Cabinet on Wednesday approved the setting up of seven Mega Integrated Textile Region and Apparel Parks with a total outlay of Rs 4,445 crore for five years.

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Mega Integrated Textile Region and Apparel (PM MITRA) Parks were announced in the Union Budget for 2021-22.

The parks will be set up at greenfield/brownfield sites located in different willing states. Proposals of state governments having ready availability of contiguous and encumbrance-free land parcels of 1,000 plus acres along with other textiles related facilities ecosystem are welcome.

The parks will offer an opportunity to create an integrated textiles value chain right from spinning, weaving, processing/dyeing and printing to garment manufacturing at one location. An integrated textile value chain at one location will also reduce the logistics cost of the industry.

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Cabinet clears Mega Investment Textile Parks (MITRA) scheme with Rs 4,445 crore outlay

The move will enable the generation of employment and attract higher investment towards the textile sector, said ICICI Securities.

“Large scale of operation and availability of all facilities like spinning, weaving, processing, dyeing and printing to garment production at a single location will enable higher levels of integration leading to better cost economics, which would enhance the global competitiveness of Indian textile companies,” the brokerage said.

Shares of Arvind, Nitin Spinners, Raymond, KPR Mill, Alok Industries, Filatex India, Bombay Dyeing & Mfg Co and Himatsingka Seide gained about 1-5 percent.

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First Published:Oct 7, 2021 11:55 AM IST