10-12 Textile Firms To Get First PLI Scheme Payments This Fiscal
Around 10-12 textile companies are set to receive the first incentive payments under the Production-Linked Incentive (PLI) scheme, according to a senior government official. “Approximately 40 companies have already initiated investments. We had a gestation period until March 2024, and we hope that 10-12 companies will receive their incentive payouts within this financial year,” the official said.
Launched in 2021, the PLI scheme aims to enhance domestic manufacturing of man-made fibres (MMF), garments and technical textiles, with a budget allocation of Rs 10,683 crore. However, the scheme received a tepid response from private sector players.
This development is notable, especially after a Cabinet Secretary-led committee earlier this year flagged concerns about the “shortfall” in investment progress across three sectors, including textiles, under the PLI initiative during 2023-24.
While the Ministry of Textiles released the PLI scheme guidelines in December 2021, only 64 applications were submitted, with investment commitments totaling approximately Rs 6,000 crore. Some companies expressed reluctance to invest in the proposed textile categories, citing a lack of expertise.
MMF, which includes viscose, polyester and acrylic—made from chemical inputs—accounts for about one-fifth of India’s apparel exports, according to exporters. Meanwhile, technical textiles, a newer sector, have diverse applications, including personal protective equipment (PPE), airbags, bullet-proof vests and in industries like aviation, defence and infrastructure.
The Ministry of Textiles has also sought cabinet approval for a second PLI scheme for the textile sector, focusing on apparel. The budget for this next phase is expected to be around Rs 4,000 crore, utilizing unspent funds from the original scheme. This edition will place particular emphasis on supporting micro, small and medium enterprises (MSMEs).
