PM MITRA Subsidy Scheme: Benefits, Eligibility, and Funding Support

Written by CA Anand Daga
on August 29, 2025
11:34 am

Introduction: PM MITRA Subsidy Scheme

The Government of India is taking strong initiatives to empower industries, farmers, and entrepreneurs through subsidy-driven schemes like the PM-KUSUM Yojana and the PM MITRA Subsidy Scheme. While PM-KUSUM focuses on renewable energy for farmers, PM MITRA targets the growth of the textile sector through integrated mega parks.

Understanding PM-KUSUM Yojana

The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Yojana is a flagship renewable energy initiative designed to empower farmers by promoting solar energy.

Key Features of PM-KUSUM Yojana:

Installation of solar pumps and grid-connected solar power plants.
Farmers can sell surplus electricity back to the grid, generating additional income.
Subsidy support for the installation of decentralized renewable energy.

PM MITRA Subsidy Scheme

The PM Mega Integrated Textile Region and Apparel (PM MITRA) Subsidy Scheme was launched by the Ministry of Textiles to strengthen India’s textile industry.

The aim is to create seven world-class textile parks, providing state-of-the-art plug and play infrastructure, generating employment, and boosting exports.

The scheme will develop integrated large scale and modern industrial infrastructure facility for total value-chain of the textile industry for example, spinning, weaving, processing, garmenting, textile manufacturing, processing & printing machinery industry.

Benefits: PM MITRA Subsidy Scheme

One of the biggest attractions of the PM MITRA Subsidy Scheme is its wide range of benefits for investors and industries:

Integrated Textile Value Chain: From spinning, weaving, and processing to garment manufacturing — all under one roof.
Plug and Play Infrastructure: Ready-to-use facilities that reduce setup time for textile units.
Lower Logistics Costs: Improved connectivity with highways, ports, and industrial hubs.
Employment Generation: Large-scale job opportunities, especially for women workers.
Export Potential: Boosts India’s position in the global textile market.

At Finraja, we help businesses understand which of these benefits align best with their business model, ensuring smooth entry into PM MITRA Subsidy parks.

PM MITRA Eligibility Criteria

To qualify under PM MITRA, specific eligibility conditions must be met:

Parks require a minimum of 1000 acres of contiguous, encumbrance-free land.
Projects must be driven by a Special Purpose Vehicle (SPV) with state and central government participation.
Investors must demonstrate capacity in terms of financial and operational readiness.

SPV will be a legal entity (with 51% equity shareholding of State Government and 49% of Central Government) set up by the State Government for the purpose of implementing the PM MITRA Subsidy Park Project.

These conditions can be tricky to navigate. Finraja’s expertise ensures businesses and investors meet all eligibility benchmarks without delays or rejections.

PM MITRA Funding Support

The funding structure under PM MITRA is designed to make the scheme investor-friendly:

Development Capital Support (DCS): Grants for building core infrastructure such as roads, power distribution, water supply, CETPs, and workers hostels. The DCS will be provided in two Phases:
Phase I – ₹ 300 Cr for Greenfield Park and ₹100 Cr for Brownfield Park, as per phasing of construction. Concession period will be 25 years till completion of Phase 1.
Phase II – ₹ 200 Cr for Greenfield Park and ₹100 Cr for Brownfield Park.
Competitive Incentive Support (CIS): Up to 3% of annual turnover reimbursed for early manufacturing units. The incentives will only be available to those manufacturing companies who are not availing benefits of Production Linked Incentive (PLI) for Textile Scheme.
Phased Funding: Greenfield parks can receive up to ₹500 crore support, while brownfield parks receive ₹200 crore.

At Finraja, we specialize in structuring applications to highlight compliance, ensuring faster approvals and maximizing incentive claims.

Complete PM Mitra Application Process with Finraja Consultancy

While the government outlines a step-based application process involving State Governments, SPVs, and Master Developers the application involves multiple layers of compliance, DPR preparation, financial structuring, and approvals.

Drafting Detailed Project Reports (DPRs)
Preparing financial models aligned with funding requirements
Liaising with State and Central Government agencies
Ensuring timely submission of compliance documents

Instead of spending time decoding complex guidelines, industries can rely on Finraja Consultancy’s expertise to manage end-to-end applications — ensuring peace of mind and a higher success rate.

Plug and Play Infrastructure in PM MITRA Subsidy Parks

A highlight of PM MITRA Subsidy parks is the plug and play model:

Pre-built factory spaces for faster operationalization.
Shared infrastructure like CETPs, warehouses, hostels, and logistics facilities.
Reduced investment burden for new entrants.

Finraja helps clients choose the right model and prepare subsidy applications that align with infrastructure incentives.

Why Choose Finraja Consultancy?

Applying for subsidies and government schemes often involves multiple stakeholders, technical documentation, and time-sensitive filings.

With Finraja Consultancy Private Limited, you get:

Expert Advisory: Tailored advice on PM-KUSUM and PM MITRA Subsidy Scheme.
DPR & Documentation Support: Professionally prepared reports and applications.
End-to-End Assistance: From eligibility check to final disbursement.
Faster Turnaround: Ensuring compliance and reducing chances of rejection.

Conclusion

Both PM-KUSUM Yojana and PM MITRA Subsidy Scheme present transformative opportunities — one for farmers in renewable energy and the other for industries in textiles. However, navigating these schemes requires more than just reading the guidelines; it needs expertise, compliance knowledge, and structured applications.

With Finraja Consultancy, businesses and entrepreneurs can focus on their growth while we take care of subsidy applications, compliance, and approvals.

Call us now: +91 9373114747 or visit: finraja.com/contact for quick assistance.