Production Linked Incentive (PLI) Scheme for Textiles

• 10 Sep 2021

The Government has approved 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.

PLI scheme for Textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in 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 the efficiencies in those sectors of economy. Government 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 investment possible with different set of incentive structure:

1. 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, shall be eligible to apply for participation in first part of the scheme.
2. In the second part any person, (which includes firm / company) willing to invest minimum Rs. 100 Crore shall 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 incentivized to move to backward area. This scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamilnadu, Punjab, AP, Telangana, Odisha, etc.

Highlights

• With this, India is poised to regain its dominance in Global Textiles Trade.
• Leveraging Economies of Scale, the scheme will help Indian companies to emerge as Global Champions.
• Help create additional employment of over 7.5 lakh people directly and several lakhs more for supporting activities.
• Scheme will also pave the way for participation of women in large numbers.
• Incentives worth Rs. 10,683 crore will be provided to industry over five years.
• It is expected that this scheme will result in fresh investment of above Rs 19,000 crore and additional production turnover of over Rs.3 lakh crore in five years.
• Higher priority for investment in Aspirational Districts & Tier 3/4 towns.
• Scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha etc.