Union Cabinet approves Production-linked Incentive (PLI) Scheme for Textiles.

Government led by Hon’ble Prime Minister, Shri Narendra Modi, has approved the PLI Scheme for Textiles for MMF Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles. (MMF: Manmade Fibre). Out of the overall announcement of PLI Schemes for 10 sectors made earlier during the Union Budget 2021-22, this is the 9th scheme to be approved.

Features of the Scheme

• 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.
• Budgetary outlay of Rs. 10,683 crores during 5 years for PLI for Textiles along with RoSCTL, RoDTEP and other measures of Government in sector will herald a new age in textiles manufacturing.

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.

There are two types of investment possible with different set of incentive structure

• Any person, willing to invest minimum ₹300 Crore in Plant, Machinery, Equipment and Civil Works to produce products of Notified lines (MMF Fabrics, Garment) and products of Technical Textiles, shall be eligible to apply for participation in first part of the scheme.
• In the second part any person, willing to invest minimum ₹100 Crore shall 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.

Expected Benefits from the Scheme

• India is poised to regain its dominance in Global Textiles Trade.
• the scheme will help Indian companies to emerge as Global Champions.
• Help create additional employment of over 7.5 lakh people directly and several lakhs more for supporting activities
• Scheme will also pave the way for participation of women in large numbers
• Scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha etc.

Shikhar Verma, Audit Associate, SW