Karnatraka Budget: PM-MITRA textile park in Kalaburagi gets ₹75-crore allocation
Karnataka's state budget has allocated ₹75 crore for the PM-MITRA (Mega Integrated Textile Region and Apparel) textile park in Kalaburagi for the financial year
Business and industry leaders have criticised the annual allocation as too modest to fast-track what is a large-scale infrastructure project requiring hundreds of crores
The Kalaburagi PM-MITRA park is one of seven such parks being set up across India under a central government scheme; Karnataka is the designated state for this particular site
The total project outlay for the Kalaburagi park stands at approximately ₹390 crore, of which ₹150 crore has been sanctioned through the Kalyana Karnataka Region Development Board (KKRDB), with ₹50.9 crore already released for tender-related works
Land transfer has been completed and a Special Purpose Vehicle (SPV) has been constituted to execute the project
Kalaburagi falls in the Kalyana Karnataka region, historically one of Karnataka's most underdeveloped districts, making the textile park a key economic development anchor
PM-MITRA Scheme (Pradhan Mantri Mega Integrated Textile Region and Apparel)
PM-MITRA is a central government scheme launched to establish seven large-scale, integrated textile parks across India. The scheme is rooted in the Prime Minister's "5F vision": Farm to Fibre to Factory to Fashion to Foreign — reflecting the aspiration to integrate the entire textile value chain within a single location. The scheme was announced in Budget 2021-22 and formally launched in 2022, with a total outlay of ₹4,445 crore spread over seven years up to 2027-28.
Key Details
- Seven parks finalised: Tamil Nadu (Virudhunagar), Telangana (Warangal), Gujarat (Navsari), Karnataka (Kalaburagi), Madhya Pradesh (Dhar), Uttar Pradesh, and Maharashtra
- Each park is expected to attract investment of ₹10,000 crore and generate approximately 1 lakh direct and 2 lakh indirect jobs
- Total investment target across all seven parks: ₹70,000 crore; total employment target: 20 lakh jobs
- Central government provides Development Capital Support (DCS): up to ₹500 crore for greenfield parks (30% of project cost) and ₹200 crore for brownfield parks
- An additional Competitive Incentive Support (CIS) of up to ₹300 crore per park is offered to incentivise early-mover manufacturing units
- Each park will have common infrastructure: incubation centre, common processing house, effluent treatment plant, design centres, and testing centres
- Administered by the Ministry of Textiles; each park is executed through a state-constituted SPV
The ₹75 crore Karnataka budget allocation is the state government's contribution to the Kalaburagi PM-MITRA park for the current year — the gap between this and the full project cost explains industry leaders' concern that the project will be slow to materialise.
India's Textile Sector: Economic Significance and Policy Context
India's textile and apparel sector is one of the largest in the world — second only to agriculture in employment generation. It contributes approximately 2.3% of GDP, 7% of industrial output, and over 12% of India's merchandise export earnings. The sector employs over 4.5 crore people directly, making it a key lever for rural employment and women's economic participation.
Key Details
- India is the world's second-largest producer of textiles and garments
- The sector suffers from fragmentation — most units operate at small scale, raising logistics costs and limiting global competitiveness
- PM-MITRA's "plug-and-play" model addresses this by providing ready industrial infrastructure, reducing entry costs for both domestic and foreign investors
- Cotton constitutes the backbone of India's textile exports; India is the world's largest cotton producer
- Competing countries like Bangladesh and Vietnam have benefited from integrated export processing zones — PM-MITRA is India's structural response
- Production-Linked Incentive (PLI) scheme for textiles (₹10,683 crore) operates alongside PM-MITRA to attract investment in man-made fibres (MMF) and technical textiles
The Kalaburagi park's delayed pace reflects a broader pattern — large central schemes require sustained state-level funding commitment to translate from policy to ground reality. Industry advocates are calling for multi-year, front-loaded funding rather than modest annual tranches.
Kalyana Karnataka Region and Regional Development Policy
Kalaburagi (formerly Gulbarga) is the headquarters of the Kalyana Karnataka region, covering six districts in northern Karnataka — Kalaburagi, Bidar, Raichur, Yadgir, Koppal, and Ballari. This region has historically lagged behind the rest of Karnataka in human development indices, industrial investment, and per capita income.
Key Details
- Article 371(J) of the Constitution grants special development provisions to Hyderabad-Karnataka (now Kalyana Karnataka), including reservation in education and employment for local residents
- The Kalyana Karnataka Region Development Board (KKRDB) was constituted under this provision to channel funds specifically for the region
- Locating the PM-MITRA park in Kalaburagi aligns with the constitutional intent of Article 371(J) — using industrial investment to address regional imbalance
- Textiles and garments are traditionally labour-intensive; a well-executed park could provide employment without requiring high educational qualifications, benefiting the region's population profile
- The district's connectivity (rail, NH-50) and land availability made it suitable despite historically low investor interest
The ₹150 crore KKRDB sanction and the state budget allocation together reflect an attempt to use the PM-MITRA framework as a tool for constitutionally-mandated regional development — but the slow pace risks delaying the economic dividend for one of Karnataka's most underserved regions.
- PM-MITRA scheme total outlay: ₹4,445 crore over 7 years (up to 2027-28)
- Kalaburagi park's total project cost: ~₹390 crore; KKRDB sanction: ₹150 crore; funds released so far: ₹50.9 crore
- Karnataka budget allocation for FY: ₹75 crore (criticised as insufficient for timely completion)
- Seven PM-MITRA parks across India; each park targets ₹10,000 crore investment and 3 lakh jobs (1 lakh direct, 2 lakh indirect)
- Central DCS (Development Capital Support): up to ₹500 crore per greenfield park
- India's textile sector: ~2.3% of GDP, 12% of merchandise exports, 4.5 crore direct employees
- Kalaburagi falls under Article 371(J) special provision for Kalyana Karnataka region