India’s PM MITRA Parks Move Forward with ₹20,000 Crore Textile Investment Potential
India’s textile sector is set for a significant boost after two PM MITRA Mega Textile Parks received approval from the Public Private Partnership Appraisal Committee (PPPAC), paving the way for the next stage of project development and bidding.
The approved projects, located in Lucknow, Uttar Pradesh, and Vansi in Gujarat’s Navsari district, are expected to attract a combined investment of approximately ₹20,000 crore (US$2.12 billion), further strengthening India’s integrated textile manufacturing ecosystem.
The parks will be developed under the Design, Build, Finance, Operate and Transfer (DBFOT) model through private sector participation. Each project is projected to generate around ₹10,000 crore in investments, create nearly 100,000 direct jobs, and support an additional 200,000 indirect employment opportunities. Both projects will operate under concession agreements with a tenure of up to 50 years.
The Lucknow PM MITRA Park will be developed across 1,000 acres through a special purpose vehicle jointly owned by the Central Government and the Uttar Pradesh Government, with equity participation of 49% and 51%, respectively. The project involves an estimated infrastructure investment of ₹1,946.92 crore and will feature industrial facilities, plug-and-play units, utilities, housing, and logistics infrastructure.
Similarly, the Vansi PM MITRA Park in Gujarat will span 1,142 acres and be developed through a joint venture between the Centre and the Gujarat Government. The project is expected to require approximately ₹3,209 crore in infrastructure investment, covering civil works, power systems, logistics facilities, commercial amenities, and common effluent treatment infrastructure.
During the appraisal process, the PPPAC recommended several enhancements to the concession framework, including updates to bidder qualification requirements, performance evaluation mechanisms, land pricing structures, user charge regulations, and technical standards for shared infrastructure such as effluent treatment and zero-liquid discharge facilities.
The committee also proposed safeguards to ensure long-term project development and prevent excessive early-stage land monetisation. Project authorities have accepted several of these recommendations, aiming to strengthen project governance and improve investor confidence ahead of the bidding process.
With the approval now secured, both PM MITRA parks are expected to move closer to implementation, supporting India’s ambition to become a global hub for textile and apparel manufacturing while attracting large-scale private investment and employment opportunities.