Synopsis: The State Government of Karnataka has decided to hasten the development of Mega Textile Park Project a project announced by CM Siddaramaiah in state Budget, under PM MITRA scheme in Kalaburagi. The Phase 1 infrastructure blueprint for the project has now been finalised, with groundwork set to begin shortly.

India registered a growth of 2.1% total textile exports in FY25-26. With this, another news came about the fast-track approach of the Karnataka government on the PM MITRA Mega Textile Park in Kalaburagi, reflecting the state’s intent to translate the budgetary commitment into on-ground action without any further delay. This move is expected to establish Kalaburagi in Northern Karnataka as an indispensable textile hub for manufacturing and employment generation.

What is the PM MITRA Scheme?

The PM MITRA which is, PM Mega Integrated Textile Region and Apparel scheme, is an initiative by the central government intended to create a global-level industrial infrastructure for the textile sector across India. This scheme aims to build an integrated ecosystem from farm to foreign, and make India globally competitive and establish sustainable textile hubs across India. Kalaburagi’s selection under this scheme shows the Centre’s intent to develop the textile manufacturing infrastructures in regions with unrealized industrial potential.

Kalaburagi’s Strategic Importance

Kalaburagi’s location in the Kalyana Karnataka region is one of the industrially underserved districts and this project will facilitate development and economic growth in the region. The nature of the textile sector is mostly labour intensive, which will further increase employment opportunities in semi-urban and rural economies in the district. The park’s first phase will be situated across survey numbers in the Kirangi, Nadisinnur, and Firozabad villages of Kalaburagi taluk. The first phase will be developed over 1,000 acres near Kalaburagi.

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Financial Support from State and Central Government

Central Government- The project will be eligible for financial assistance of 30% of the total project cost, which is also subject to the maximum limit of ₹500 crore (US $52.44 million), under the Central Government’s Development Capital Support (DCS) scheme. This grant is to be utilized for the development of internal infrastructure, including the roads, water supply, hostel facilities, a common effluent treatment plant (CETP), and power infrastructure.

State Government- To facilitate the release of the first installment of funds for the project, the state government will also provide a minimum of ₹25 crore (US $2.62 million) via state implementing agency. Officials are also instructed to initiate the process for disbursing funds towards physical infrastructure development.

All in all

The acceleration of this project, PM MITRA Mega Textile Park Project in Kalaburagi marks a meaningful step towards building a robust textile hub corridor in Northern Karnataka and will also help to mitigate the developmental disparities among the districts in Karnataka. With the Central’s and State Government support, the project holds a strong potential to drive inclusive industrial development and large-scale employment in one of Karnataka’s key emerging districts.

Written by Jahnavi

  • : Author

    Jahnavi is a Finance Content Writer at Trade Brains. She writes on mutual funds, credit cards, personal finance, taxation, equity research, market and business trends with a focus on delivering relevant articles to the viewers. She holds a BSc in Mathematics, Economics and Computer Science and a postgraduate degree in MCA, combining her financial knowledge with technical expertise.