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Chennai, Oct 7
The Indian Texpreneurs’ Federation (ITF) has urged the textile sector in Tamil Nadu to make use of the PLI 2.0 scheme, which has eased the terms and conditions for investment .
The Textile Ministry has released the draft of the PLI 2.0 scheme for the Apparel & Home Textile sector.
PLI 2.0 lays down a minimum investment of Rs 15 crore to get incentives for five years, while simplifying turnover and incremental sales conditions to help SMEs build much-needed scale and competitiveness.
“This scheme is not limited to exporters, but to all domestic companies that meet the requirements laid in the draft. The scheme is open for all products, including cotton (61,62 and 63 HS codes), and companies can choose the products they would prefer to manufacture. Close to 500 companies in Western Tamil Nadu are eligible to apply under this scheme. Companies also have a good gestation period to kick-start operations,” Prabhu Dhamodharan, Convener of ITF, said in a statement.
Companies that take the PLI scheme can also receive incentives from the state government. More than 60 companies under the PLI 1.0 scheme have received better visibility and their brand value has increased among international clients.
US customers are looking at suppliers who can meet their needs besides China, and it is the right time for Indian textile industries to make use of the opportunities, he said
Together, KPMG and ITF will collect feedback from entrepreneurs about the scheme and the changes needed to make it attractive for investment by companies from Tamil Nadu.
Since the first PLI scheme focused more on improving the manufacturing and export prowess of Indian industries, concentrating on select Man-Made Fibres (MMF), various associations, including ITF, appealed to the Centre and the Textile Minister Piyush Goyal to provide a PLI Scheme to facilitate the participation of MSMEs and cotton-based product manufacturing companies. The draft PLI 2.0 with simplified conditions, earmarks Rs 4,300 crore to provide incentives to companies.
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