New PLI Textile Scheme Put Up For Cabinet Approval
One more production-linked incentive (PLI) scheme for the textile and garment sector, which will focus on production of apparels, made-ups and garment accessories produced from either, natural or manmade fibre has been put up for approval of the Cabinet, by the Ministry of Textiles.
“The proposed minimum investment and turnover criteria for the new PLI scheme are likely to be lower than the current operational scheme, so that even MSME’s can avail of the incentives,” The Hindu Business Line reported.
The new PLI scheme envisaged by the ministry is reportedly considering three investment thresholds of Rs 15 crores, Rs 30 crores, and Rs 45 crores, with double the turnover as the criteria for availing incentives.
These incentives would range between 8-10% under the scheme totaling to Rs 4,200 crores.
In all likelihood, the ministry may also remove the pre-condition of setting up a new company to be eligible for the scheme. It may allow all companies registered in India to participate under conditions such as maintenance of separate accounts in production.
The new scheme will encompass producers of garments, home textiles like blankets and bedspreads; and apparel accessories like zippers, buttons and lace.
The existing PLI scheme, whose operational guidelines were issued on December 2021, had an approved outlay of Rs 10,683 crore to promote the production of manmade fabrics, garments and products of technical textiles.
There are two parts of the existing scheme, where in the first, the minimum investment is Rs 300 crores, and the minimum turnover required is Rs 600 crores for receiving incentives, while for the second, minimum investment is Rs 100 crore and the minimum turnover Rs 200 crores.
