AGENCY
new delhi, june 5
The Uttar Pradesh government has fast-tracked the selection process for a master developer to execute the proposed PM Mega Integrated Textile Region and Apparel (PM MITRA) park on the Lucknow-Hardoi border.
As part of the scheme, the parks will be developed, marketed, and operated under the Public-Private Partnership (PPP) model. To facilitate this, the Ministry of Textiles, Government of India, in consultation with all participating states, has finalized a model Request for Proposal (RFP) and Draft Concession Agreement (DCA), officials here on Thursday said.
These documents will serve as the basis for selecting the master developer responsible for the project. According to the provisions outlined in the draft bid document, the project will follow the Design, Build, Finance, Operate, and Transfer (DBFOT) model. It will be awarded for a concession period of 50 years.
Under the DBFOT model, the selected master developer will be responsible for designing the park layout, establishing the core infrastructure, and building the entire textile ecosystem. The project will be driven forward through a combination of government support and private investment.
Upon completion, the master developer will manage and operate the park. Once the 50-year concession period concludes, ownership and operational rights will revert to the state government and the Special Purpose Vehicle (SPV) overseeing the project. To support infrastructure development, the Ministry of Textiles of the Central government will provide financial assistance of Rs 500 crore, to be disbursed in two phases. In line with this, a dedicated Special Purpose Vehicle (SPV)—PM Mitra Park Uttar Pradesh Ltd.—has been incorporated under the Companies Act to facilitate project implementation.
In addition, the Yogi government will offer a comprehensive package of incentives to industrial units setting up operations in the park. These include subsidies on land cost, stamp duty, capital investment, interest, power, employment generation, and freight. The mega textile park is expected to attract investments of over Rs 10,000 crore and generate more than 1 lakh direct and indirect employment opportunities. Alongside the park, core infrastructure in the surrounding region will also be developed, fostering broader industrial growth and creating a favorable environment for investment and enterprise.
Rakesh Sachan, Minister for Micro, Small and Medium Enterprises stated that the selected master developer will be responsible for preparing a comprehensive master plan by global standards and the guidelines issued by the Special Purpose Vehicle (SPV). The master developer will develop the entire infrastructure within the park at their own risk and expense. Additionally, the developer will be responsible for marketing, operating, and maintaining the park.
The master developer will be tasked with building a range of critical facilities, including internal road networks, power distribution systems, water supply and wastewater treatment plants, plug-and-play infrastructure, factory sheds, incubation centers, common processing facilities and boilers, worker accommodations and hostels (with a focus on women workers), health centers, training and skill development centers, warehousing and logistics hubs, and other essential support infrastructure.
The RFP document and the draft Concession Agreement for the scheme are being finalized and will be submitted to a committee headed by the Chief Secretary. The committee’s recommendations will subsequently be forwarded to the Uttar Pradesh Council of Ministers for approval.
The PM Mitra Park project will be implemented and operated by a Special Purpose Vehicle (SPV), which will be jointly owned by the Government of India and the Government of Uttar Pradesh. The ownership structure of the SPV will consist of 51% equity held by the Uttar Pradesh government and 49% by the Central Government.
Under this arrangement, the state government is responsible for providing 1,000 acres of land for the project, as well as developing external infrastructure, including four-lane road connectivity, power supply, and water supply.
The park is being established on land from the Rehman Khera Agricultural Farm, located along the Lucknow-Hardoi border. This land has been transferred to the SPV on a 99-year lease at a nominal rate of ?1 per acre per year.
