The Textile Ministry has approved the applications of three additional companies under the production-linked incentive (PLI) scheme for textiles, which includes Birla Fashion and Retail Ltd and RSWM Ltd of the Bhilwara Group, taking up the total number of selected applicants to 64.
“In the approved 64 applications so far, the proposed total investment is ₹19,798 crore and projected turnover of ₹1,93,926 crore with a proposed employment of 2,45,362,” according to a Textile Ministry note.
PLI scheme for textiles: Govt approves 61 proposals of over ₹19,000 croreSelected applicants include 7 foreign groups; second edition of PLI scheme likely for garment makers
Textile Secretary UP Singh had pointed out that while 61 of the 67 applications for textiles PLI scheme, for man-mad fibre (MMF) apparel, MMF fabric and technical textiles, had been approved during the initial announcement, the remaining were put on hold as there were some issues to be addressed. He said that they would be re-considered.
“The selection committee met again on April 27 and approved the three additional applications,” a person tracking the matter said.
Of the three fresh approvals, one application from RSWM Ltd, one of the largest yarn manufacturing companies in India, was under part 1 of the scheme. The minimum investment requirement under the first part is ₹300 crore with minimum turnover required to be achieved for getting incentive at ₹600 crore.
The other two approvals, one from Birla Fashion and Retail Ltd and the other from Pan Healthcare Pvt Ltd, are under part two, with minimum investment of ₹100 crore and minimum turnover required to be achieved for incentive is ₹200 crore.
This has taken up the total applications approved under part one to 14 and under part two to 60. Other companies that are investing under part one of the scheme include Trident, Shahi Exports, Kimberly Clark India Private Limited (subject to formation of a new company for investment and production under the Scheme as per existing guidelines) and Madura Industrial Textiles Ltd.
Some of the other companies investing under part two of the scheme include Monte Carlo Fashions Ltd, Pearl Global Industries, Sangam (India), Toray International, Texport Industries, Kanodia Global and Lotus Hometextiles.
Second edition soon
The Centre may next come up with a second edition of the PLI scheme, dedicated to apparels and garments, with a lower investment criteria, to ensure that the entire ₹10,683 crore of incentives allocated under the scheme gets fully utilised and relatively smaller players can also benefit.
The Textile Ministry is projected to utilise a little more than ₹6,600 crore for the current investors under the scheme and has enough funds to invite a second round of applicants.