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Centre approves PLI Scheme for textiles

Wednesday, 08 Sep 2021
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The Central government has approved the Production Linked Incentive (PLI) Scheme for textiles for MMF apparel, MMF fabrics and 10 segments/products of technical textiles with a budgetary outlay of Rs 10,683 crore.

The PLI Scheme for textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore.

With the announcement of the PLI Schemes for 13 sectors, minimum production in India is expected to be around Rs 37.5 lakh crore over five years and minimum expected employment over five years is nearly one crore.

The PLI Scheme for textiles will promote production of high value MMF fabric, garments and technical textiles in the country. The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments.

This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade.

The technical textiles segment is a new age textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, etc will improve efficiencies in those sectors of economy.

The Centre has also launched a National Technical Textiles Mission in the past for promoting R&D efforts in that sector. PLI will help further in attracting investment in this segment.

There are two types of investments possible with different sets of incentive structure. Any person, (which includes firm/ company) willing to invest minimum Rs 300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of notified lines (MMF fabrics, garment) and products of technical textiles, will be eligible to apply for participation in the first part of the Scheme.

In the second part any person, (which includes firm / company) willing to invest minimum Rs 100 crore will be eligible to apply for participation in this part of the Scheme. In addition, priority will be given for investment in aspirational districts, Tier-3, Tier-4 towns, and rural areas and due to this priority Industry will be incentivised to move to backward area. This Scheme will positively impact especially states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, Odisha, etc.

It is estimated that over the period of five years, the PLI Scheme for textiles will lead to fresh investment of more than Rs 19,000 crore, and cumulative turnover of over Rs three lakh crore will be achieved under this Scheme and, will create additional employment opportunities of more than 7.5 lakh jobs in this sector and several lakhs more for supporting activities.

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