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Tamil Nadu is keen on taking advantage of the PLI (production linked incentive) scheme for textiles and will extend all support to the industry to attract investments.
The success of the scheme lies in the joint effort of the Centre, State governments and investors. Most of the State governments including Tamil Nadu are willing to take it forward as there is awareness about the PLI scheme, said Vijoy Kumar Singh, Additional Secretary, Ministry of Textiles, Government of India.
The PLI scheme is expected to have a positive impact on States such as Tamil Nadu, Maharashtra, Gujarat, UP, Punjab, AP, Telangana and Odisha.
He added that States like Tamil Nadu will reap immense benefits through the scheme as it was already a leading player in textiles. If investments fructify, a lot of jobs will be created. A capital investment of ₹1 crore in textile sector can create about 70 jobs and no other sector has that potential. Also, more production will fetch GST revenue. Overall, it will be a win-win scheme
Time-bound scheme
Singh also explained that PLI is a different and a time-bound scheme as the gestation period is only two years and after that there will be benefits for 5 years. Earlier, government assistance was there despite delay in projects. But this time it is clear, and one has to build the factory and commence operations in two years’ time.
Textile industry representatives indicate that Tamil Nadu government has been pro-active in attracting investments. The recent announcement on the removal 1 per cent Agricultural Market Committee cess on cotton and cotton waste has cheered the industry as it has been a long demand of textile industry associations.
The State government has assured State level support for projects under PLI on a case-to-case basis. It has also promised a nodal agency for speeding up project clearances in a time-bound manner, said KS Sundararaman, Chairman, Indian Technical Textile Association.
PLI scheme appears to offer big opportunities particularly for two segments – MMF apparel and spinning. “In MMF space, there are a few players from Tamil Nadu who have built domestic as well as export businesses. These companies could aim for ₹100 crore project under the PLI scheme. Also, spinning players could graduate to fabric (processed) business level if not apparel level. Standalone spinners should explore investments under this programme as this will be a natural progress for them – basic products to finished products,” said Prabhu Dhamodharan, Convenor of Coimbatore-based Indian Texpreneurs Federation.
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