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The Textile Ministry has extended the timeline for applications for the Production Linked Investment scheme by two weeks to February 14, 2022. “The Ministry expects the number of submissions to go up significantly following the extension of the timeline. Several investors have indicated their interest in applying for the scheme. They would be more comfortable with the additional time,” a person tracking the matter said.
Earlier, the final date of submission of online application under PLI scheme for textiles was January 31, 2022. Eligible applicants are to apply through the online mode only.
Promoting man-made fibres
The PLI scheme for textiles, which has been allocated a budgetary outlay of ₹10,683 crore, covers 40 MMF (man-made fibre) garment items, 14 MMF fabric items and 10 technical textile items.
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Industry makes case for withdrawal of the proposed increase in rates from 5% to 12%The scheme aims to promote the manufacturing of MMF and technical textiles in India, which together contribute to an estimated two-thirds of international trade in textiles. India has been traditionally strong in cotton textiles but MMF manufacturing is still at a fledgling stage.
Benefits under the PLI scheme are to be provided for five years from 2025-26 to 2029-30 on incremental turnover achieved during 2024-25 to 2028-29.
Two-part scheme
The scheme is divided into two part. The first part requires investment of a minimum of ₹300 crore in plant, machinery and equipment while the second part requires a lower limit of ₹100 crore. Investors under part one and part two will earn incentives of 15 per cent of turnover and 11 per cent of turnover, respectively, in the first year.
Thereafter, the incentive earned will be one per cent lower every year for the next four years on achieving minimum turnover of ₹600 crore in the first year and incremental turnover of 25 per cent for investors under part one, and a minimum turnover of ₹200 crore in the first year and an incremental turnover of 25 per cent in the following four years for investors under part two.
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