Govt. clears ₹10,683 cr. textiles PLI plan

Incentives aim to boost investment in new capacities in man-made fibre apparel, technical textiles

The Union Cabinet on Wednesday approved a ₹10,683 crore Production Linked Incentive (PLI) scheme for the textile sector with a view to “helping India regain its historical dominant status in global textiles trade”.

The scheme’s incentive structure is designed to encourage investment in fresh capacities in man-made fibre (MMF) apparel, MMF fabrics, and 10 segments or products of technical textiles. The government expects the scheme to help attract fresh investment of more than ₹19,000 crore, creating an additional 7.5 lakh direct jobs.

Describing the move as a “game changer”, Union Minister for Textiles, Commerce and Industry, Consumer Affairs, Food and Public Distribution Piyush Goyal told The Hindu that any investment in the sector would have a multiplier effect especially in terms of job creation. “ The PLI as a whole is a game changer. And, for textiles it will be a big, big boost. Because… you create maximum employment in the textile sector, for every rupee invested,” he added.

Two-third of India’s textile exports now are cotton based whereas 66% to 70% of world trade in textiles and apparel is MMF-based and technical textiles. India’s focus on the manufacture of textiles in the MMF sector is expected to help boost its ability to compete in the world market, according to the government.

The scheme envisages two levels of investment with different sets of incentives. While any person (which includes a firm/company) can invest a minimum ₹300 crore in plant, machinery, and civil works (excluding land and administrative building cost) to produce the identified products to ensure eligibility for the incentives, in the second category a minimum investment of ₹100 crore would make an individual or firm eligible to apply for the PLI.

Priority would be given for investment in aspirational districts, tier-three, tier-four towns and rural areas. The scheme is expected to benefit States such as Gujarat, U.P., Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, and Odisha.

Textiles Secretary Upendra Prasad Singh said guidelines for implementation of the scheme would be notified by the end of this month. A portal would be opened to receive applications and the plan is to allow two months time to the units to apply for benefits under the scheme.

Applicants would have two years as investment period and 2024-2025 would be the ‘performance’ year. The incentive flow would start in 2025-2026 and extend for five years. As many as 40 product lines in the MMF apparel segment, 14 product lines in MMF fabrics and 10 segments / products in technical textiles have been identified for the PLI scheme.

S.K. Sundararaman, chairman of the Indian Technical Textile Association, said the PLI plan, in conjunction with other schemes and benefits, was ‘a boon’ to the MMF sector. It would help accelerate decisions by companies wanting to invest in the MMF sector.

Dilip Gaur, Chairman of the CII National Committee on Textiles and Apparel and Managing Director of Grasim Industries, said the scheme would provide an immense boost to domestic manufacturing and prepare the industry for making a big impact in the global markets.

Source: Read Full Article