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The Textile Ministry will accept online applications under the production-linked incentive (PLI) scheme for textiles, which was approved earlier this year with an outlay of ₹10,683 crore, from January 1.
“The application window will remain open from January 1 to January 31 2022,” according to an official release issued by the Textile Ministry on Tuesday.
Operational guidelines
The operational guidelines of the scheme, which is aimed at promoting the production of MMF (man made fibre) apparel, MMF fabrics and technical textiles in the country, have also been finalised.
The scheme covers 40 MMF garments, 14 MMF fabric items and 10 technical textiles items. Benefits are to be provided for five years from 2025-26 to 2029-30 on incremental turnover achieved during 2024-25 to 2028-29.
“After having due consultations with all stakeholders including DPIIT, NITI Aayog, Department of Commerce, Department of Expenditure, Department of Revenue, Export Promotion Councils and trade bodies, these scheme guidelines are being issued for effective operation and smooth implementation…,” per the operational guidelines.
The Empowered Group of Secretaries (EGoS), headed by the Cabinet Secretary, will monitor the progress of this PLI scheme, undertake periodic review of the outgo under the scheme, ensure uniformity with other PLIs and take appropriate action to ensure that the expenditure is within the prescribed outlay, the guidelines said.
Most importantly, the EGoS is also empowered to make any changes in the modalities of the scheme, and address any issue related to genuine hardship that may arise during the course of implementation, within the overall financial outlay of ₹10,683 crore.
Per part one of the scheme, beneficiaries need to invest a minimum of ₹300 crore in plant, machinery and equipment. They will earn an incentive of 15 per cent of turnover the first year and thereafter, 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 in the subsequent four years.
Minimum investment limit is lower at ₹100 crore in second part of the scheme. Incentives, too, are lower, starting at 11 per cent in the first year and getting reduced by 1 per cent each year in the four subsequent years. In this category, beneficiaries need to attain a minimum turnover of ₹200 crore in the first year and an incremental turnover of 25 per cent in the following four years.
There will be a provision of cap of 10 per cent over and above the prescribed minimum incremental turnover growth of 25 per cent for the purpose of calculation of incentives from the second year onward. Turnover achieved beyond that cap will not be taken into account for calculation of incentive. However, for the first year, the cap of 10 per cent will be applied over and above turnover of two times of the investment made under the scheme up to 2024-25.
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