The Centre has sent letters of approval to a total of 54 applicants under the Production Linked Incentive (PLI) scheme in August and investments of around ₹700 crore have already been made, according to official sources.
“Of the total 64 applicants with a proposed investment of ₹19,798 crore selected by the Selection Committee chaired by Textiles Secretary earlier, as many as 54 have received their letters of approval by August. At the moment, about ₹700 crore have been invested and the amount will steadily go up,” the source told businessline.
The PLI scheme for textiles is intended to promote production of manmade fibre (MMF) apparel and fabrics and technical textiles’ products in the country to enable the textile industry to achieve size and scale to become competitive and to create employment opportunities, according to the Textiles Ministry.
Amongst States, Madhya Pradesh, Gujarat, Maharashtra and Andhra Pradesh have attracted the most investments under the PLI scheme.
Although an outlay of ₹10,683 crore was approved for the PLI textiles scheme as incentives, the Textile Ministry has estimated that it would be using a little over ₹6,000 crore. It is thus envisaging a PLI 2.0, but this time the scheme may be extended to cotton garments and made-ups as well, source said.
The minimum investment limits and turnover limits to qualify for the incentives is also likely to be lowered in the second part of the scheme to allow MSMEs to also benefit.
Interestingly, under the existing scheme, which has two parts, as many as 50 are in the second category where minimum investment requirement is ₹100 crore. In the first part, where minimum investment requirement is ₹300 crore with higher incentives, total number of projects approved is 14.