Centre Plans Rejig Of Textile PLI Scheme, Expanding Coverage To More Product Lines

Following a lukewarm reception, the government is set to make the production-linked incentive (PLI) scheme for textiles more attractive by incorporating additional product lines, such as t-shirts and innerwear, according to a report in Live Mint.

Launched two years ago, the scheme aims to boost domestic manufacturing of man-made fabric (MMF) garments and technical textiles, with a budgetary allocation of Rs 10,683 crore.

MMF encompasses materials like viscose, polyester, and acrylic, which are chemically derived. Technical textiles, a more modern category, are used in producing items like personal protective equipment (PPE), airbags, and bullet-proof vests, and have applications in sectors such as aviation, defense, and infrastructure.

The proposal to modify the scheme, originally approved in September 2021, arises after the current scheme's failure to increase India's textile exports, which fell by 11.69 percent from $16.24 billion in 2018 to $14.34 billion in 2023.

Industry stakeholders suggest that the scheme would be more effective if the minimum entry level were reduced to allow smaller players to benefit. The current PLI scheme, with its significant capital requirements, is more suited for establishing large textile mills rather than apparel factories.

Additionally, the government plans to extend the period for setting up facilities from two years to over three years, according to the report.

So far, the government has approved 64 applicants under the scheme, with a proposed investment of Rs 19,798 crore, a projected turnover of Rs 1.94 crore, and the creation of 245,362 jobs.

The first set of applicants will begin receiving incentives from 2025-26.