The government has approved the production linked incentives (PLI) scheme for textiles with a budgetary outlay of Rs 10,683 crore.
PLI scheme for textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore, an official release said on Wednesday (8 September).
According to the release, the PLI scheme for textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in country.
The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade, it added.
There are two types of investment possible with different set of incentive structure. Any person, (which includes firm or company) willing to invest minimum Rs 300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of notified lines (MMF Fabrics, Garment) and products of Technical Textiles, will be eligible to apply for participation in first part of the scheme, the release said.
In the second part any person, (which includes firm or company) willing to invest minimum Rs 100 crore will be eligible to apply for participation in this part of the scheme.
In addition, priority will be given for investment in aspirational districts, tier-3, tier-4 towns, and rural areas and due to this priority Industry will be incentivized to move to backward area. This scheme will positively impact especially states like Gujarat, UP, Maharashtra, Tamilnadu, Punjab, AP, Telangana, Odisha etc, it added.
"It is estimated that over the period of five years, the PLI Scheme for Textiles will lead to fresh investment of more than Rs 19,000 crore, cumulative turnover of over Rs 3 lakh crore will be achieved under this scheme and, will create additional employment opportunities of more than 7.5 lakh jobs in this sector and several lakhs more for supporting activities," the release said.
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