The Ministry of Textiles is set to unveil another production-linked incentive (PLI ) scheme for the textile industry that will focus on manufacturing garments, made-ups and textiles accessories of all materials (natural or man-made), The Hindu Business Line reported.
The outlay for the new PLI scheme is expected to pegged at Rs 4200 crores.
The proposed minimum investment and turnover criteria for the new PLI scheme are likely to be lower than the current operational scheme so that even MSMEs can avail of the incentives.
For the new scheme, the textiles ministry is reportedly considering three investment thresholds (Rs 15 crores, Rs 30 crores, and Rs 45 crores) with double the turnover as the criteria for availing incentives that would range between eight per cent and 10 per cent.
The textile ministry is also likely to remove the pre-condition of setting up a new company to be eligible for the scheme and may allow all companies registered in India to participate under conditions such as maintenance of separate accounts and counting investments in only new machines towards eligibility, according to The Hindu Business Line report.
The PLI 2.0 scheme could cover makers of apparel and home textiles, such as blankets and bedspreads, and textile accessories like lace, button, and zippers.
The current edition of the PLI scheme for textiles, introduced in 2021, is limited to producing man-made fibre (MMF) fabrics, apparel, and technical textiles.
Existing PLI Scheme For Textiles
The Modi government launched the first PLI scheme for the textile industry with an approved outlay of Rs.10,683 crore to promote the production of MMF Apparel, MMF fabrics and products of technical textiles in the country to enable the industry to achieve size and scale and to become competitive.
The scheme comprised two parts: Part 1, where the minimum investment was Rs 300 crores, and the minimum turnover required is Rs 600 crores for receiving incentives and Part 2, where the minimum investment is Rs 100 crore and the minimum turnover required Rs 200 crores.
In September 2021, the ministry notified the PLI Scheme and the operational guidelines for the PLI Scheme were issued on December 2021.
Applications under the PLI Scheme for textiles were received through the web portal from 1 January to 28 February, and 67 applications were received.
In April 2022, the Union Government approved 61 applications with an investment potential of over Rs 19,000 crore under the PLI scheme for textiles. Three more companies were subsequently added in May 2022. The total number of applications approved under Part 1 is now 14, and under Part 2, is 50.
The proposed PLI schemes for textiles will be announced after receiving Cabinet approval.
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