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Thursday, September 23, 2021

Eyeing ramp up: Rs 10,683-crore PLI scheme for textiles gets Cabinet nod

The scheme aims to attract investments worth Rs 19,000 crore over five years to increase the production of in-demand textile products — man-made fibre (MMF) fabric, garments and technical textiles . This is part of a larger PLI scheme for 13 sectors, with a total budgetary outlay of 1.97 lakh crore.

By: ENS Economic Bureau | New Delhi |
Updated: September 9, 2021 12:30:22 pm
New Delhi: Union Ministers Piyush Goyal and Anurag Thakur address media on cabinet decisions, at National Media Centre in New Delhi. (PTI Photo)

The Union Cabinet on Wednesday approved a Production-Linked Incentive (PLI) Scheme worth Rs 10,683 crore for the textiles sector to to boost domestic manufacturing and exports.

The scheme aims to attract investments worth Rs 19,000 crore over five years to increase the production of in-demand textile products — man-made fibre (MMF) fabric, garments and technical textiles . This is part of a larger PLI scheme for 13 sectors, with a total budgetary outlay of 1.97 lakh crore.

“Two-thirds of the international trade in textiles is of man-made and technical textiles. In this situation, this PLI scheme has been approved so that India can also contribute to the ecosystem of fabrics and garments made of MMF,” Commerce and Textiles Minister Piyush Goyal said on Wednesday. He added the scheme was expected to generate 7.5 lakh additional jobs and extra turnover of Rs 3 lakh crore in the sector.

“We are targeting to notify the scheme within a week. And by September-end, we will be issuing the detailed guidelines,” Textiles Secretary UP Singh told PTI.

Any person or company willing to invest a minimum Rs 300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of MMF fabrics, garments and products of technical textiles will be eligible to participate in the first part of the scheme. Investors willing to spend a minimum of Rs 100 crore under the same conditions shall be eligible to apply in the second part. Investments made in aspirational districts, tier 3, tier 4 towns and rural areas would get priority under the scheme, said a statement by the Textiles Ministry.

Dilip Gaur, MD, Grasim Industries Ltd, and chairman of the CII national committee of textiles, said: “The PLI scheme will provide a boost to domestic manufacturing.”

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