Comments
The government has selected a total of 61 applicants under the production-linked incentive (PLI) scheme for textiles, to promote production of man made fibre (MMF) fabrics & apparels and technical textiles, with a proposed investment of ₹19,077 crore.
This includes applications from seven foreign groups from countries such as the US, Japan, South Korea, Israel, Germany and Sri Lanka, who will produce in the country through their Indian arms, according to Textiles Secretary UP Singh who addressed a press briefing on Thursday.
“In the approved 61 applications, the proposed total investment is ₹19,077 crore and a projected turnover is ₹184,917 crore with a proposed employment of 2,40,134,” Singh said.
Related Stories
India’s goods exports touch new peak of $400 billion in FY22
Engineering goods, electronics, farm items, textiles, petro products, chemicals lead chargeThere were just 15 applications under part one of the scheme, with minimum investment requirement of ₹300 crore and minimum turnover mandated at ₹600 crore, of which 13 were selected. The number of applicants for part two of the scheme, with lower minimum investment requirement of ₹100 crore and minimum turnover requirement at ₹200 crore, have been much higher at 52 of which 48 were selected.
Second edition soon
The Textile Ministry is likely to come out with a second edition of the PLI scheme some time soon to fully utilise the allocated amount of ₹10,683 crore for a five-year period as the outgo on incentives based on the approved projects is estimated to be ₹6,600 crore, the Secretary added.
Related Stories
PLI for textiles: Govt so far receives 69 registrations, 42 draft applications, 8 final ones
Expect final applications to shoot up towards end of deadline exhausting available funds in one go, says Textile Secretary“Based on the approval of the competent authority, we plan to have the PLI-2 scheme only for the apparel industry as that is where maximum job creation takes place,” Singh said. He added that the parameters for the scheme, like minimum investment requirement, may be brought down to accommodate smaller entities.
Some of the applicants that have received the nod for the scheme include Kimberly Clark from the US, Madura Industrial Textiles, Trident Limited, Toray International from Japan, Shahi Exports and Suchi Industries.
On the government’s decision to do away with 10 per cent import duty on cotton imports till September 30 this year, Singh said that it will enable users to import from wherever they were getting cotton at competitive prices and will also lower domestic prices as those holding stocks will prefer to sell. However, cotton prices will not fall too low as there were shortages globally with countries such as the US dealing with a drought-like situation.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.