Updated: September 10, 2021 6:45:21 am
The Union Cabinet Wednesday approved a Production-Linked Incentive (PLI) scheme for the textiles sector worth Rs 10,683 crore.
The scheme aims to attract fresh investment of Rs 19,000 crore in the sector for production of in-demand textiles, and additional turnover of Rs 3 lakh crore over five years. This is part of a larger PLI scheme for 13 sectors, with a total budgetary outlay of 1.97 lakh crore.
Which segments will the new PLI scheme promote?
The PLI scheme for textiles aims to promote the production of high value Man-Made Fibre (MMF) fabrics, garments and technical textiles.
“Two-thirds of international trade in textiles is of man-made and technical textiles. This scheme has been approved so India can also contribute to the ecosystem of fabrics and garments made of MMF,” Commerce and Textiles Minister Piyush Goyal said on Wednesday.
Man-made staple fibres accounted for exports of $1,699.05 million in FY20, while technical textiles accounted for exports of $42.7 million in the same year.
In Q1 FY22, man-made staple fibres accounted for exports of $483.3 million, while technical textiles accounted for exports of $11.7 million in the same period.
Which producers will benefit from the PLI scheme?
The scheme is set to provide incentives to eligible producers in two phases.
Any person or company willing to invest a minimum of 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 of the scheme.
Goyal said the scheme would directly benefit the states of Gujarat, Uttar Pradesh, Maharashtra, Punjab, Tamil Nadu, Andhra Pradesh, Telangana and Odisha, as these were states where the textile sector is already growing. However, he said he hoped the scheme would benefit all states across the country.
Dilip Gaur, Managing Director of Grasim Industries Ltd and chairman of the CII national committee of textiles, said, “The PLI scheme will provide an immense boost to domestic manufacturing, and prepare the industry for making a big impact in global markets in sync with the spirit of Atmanirbhar Bharat. It will also help attract more investment into this sector.”
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