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The Union Cabinet has cleared the much-awaited ₹10,683 crore Production Linked Incentive (PLI) scheme for the textile industry, which covers items from the MMF (man-made fibre) and the technical textiles sectors.
The approved incentive will be provided to eligible units over a period of five years.
PLI scheme for textiles will promote the production of high-value MMF fabrics, garments, and technical textiles in the country, according to Commerce & Industry and Textiles Minister Piyush Goyal. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments.
"So far, we have primarily focused on cotton textile. But two-thirds share of the international textile market is of man-made and technical textile. This PLI scheme has been approved so that India can also contribute to the production of man-made fibers. We hope that this decision will produce some global champions,” Goyal said at a media briefing following the Cabinet meeting on Wednesday.
MMF, such as polyester, viscose, are made from various chemicals, or are regenerated from plant fibres. Technical textiles include new age functional fabrics that have applications across industries such as automobiles, civil engineering and construction, agriculture, healthcare, industrial safety and personal protection.
Eligibility
For eligibility under the scheme, two types of investments are possible. Any person, (which includes firm / company) willing to invest a minimum of ₹ 300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of the notified MMF fabrics, garment and products of technical textiles, shall be eligible to apply for participation in first part of the scheme, per an official release.
In the second part, any person, firm or company, willing to invest minimum ₹100 crore shall be eligible to apply.
The factories based around aspirational districts or Tier-3 & Tier-4 cities will be given priority, Goyal said. “It will especially benefit Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana etc," the Minister added.
It is estimated that over the period of five years, the PLI Scheme for textiles will lead to fresh investment of more than ₹19,000 crore and cumulative turnover of over ₹ 3 lakh crore, the release pointed out. It is also expected to generate an additional direct employment of 7.5 lakh and indirect employment of several lakhs more.
The 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 ₹ 1.97 lakh crore
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