Production Linked Incentive Scheme for the Textiles Industry

Shri Upendra Prasad Singh, Secretary (Textiles), Govt. of India in an Interaction Meet with the representatives of the Textiles industry organized today on September 17, 2021 at Hotel Taj West End, Bengaluru explained the provisions of the Production Linked Incentive Scheme for the Textiles Industry launched recently by the Govt. of India.

Forging towards the vision of an ‘Aatmanirbhar Bharat’ of Shri Narendra Modi, Hon’ble Prime Minister, the PLI scheme for textile sector will encourage the industry to make investment in manufacture of the high value-added products. like MME garments and technical textiles which account for nearly $180 billion global trade and it is estimated that the Scheme will promote cumulative turnover of over Rs 3 lakh crores during the period of five years.

He informed that the aim of the scheme, with a budgetary outiay of Rs. 10,683 crore, is to focus on investment attention on high -value 40 Man-made Fibres (MMF) apparel product lines, 14 MMF fahric lines and 10 segments or products of technical textiles, These 64 items have been chosen for their being amongst the top-traded lines in the global market as weil as India having less than 5% share in each of them. Along with the Scheme, other promotional measures in the sector like, providing raw material at competitive prices, skill development etc., aim to boost the textiles manufacturing in the country.

The incentive structure has been so formulated that the industry wil be encouraged to invest in fresh capacities in these segments. The incentives have been categorised into two investment levels. Firms investing at least Rs.300 crore into plant, machinery, equipment and civil works over two years for making a specified product would need to hit a minimum turnover of Rs.600 crore to be eligible to receive the incentive over a five-year period, and at a second level an investment of Rs.100 crore with a pre-set minimum turnover of Rs.200 crore would enable qualification for the incentive.

Priority will be given for investment in Aspirational Districts, Tier 3 & 4 towns, and rural areas which will incentivize the industry to rnove to rather backward area,

This will give a major push to growing MMF segment and complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade.

Highlights of the Scheme *Leveraging economies of scale, the Scheme will help Indian companies to emerge as global champions

*Help create additional employment of over 7.5 lakh persons directly and other several lakh persons for supporting activities

*Incentives worth Rs.10,683 crore to be provided to the industry over five years

*Anticipated to bring in fresh investment of above Rs.19,000 crore and additional production turnover of over Rs.3 lakh crore in five years

*Higher priority for Aspirational Districts and Tier 3 & 4 towns

*Pave way for increased participation of women

City Today News

9341997936

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.