Rs. 10,683-cr PLI push for textiles

Production-Linked Incentive

- Textiles ministry to announce guidelines on PLI by Sept end

- Will open window for PLI during Nov 1-Dec 31

- India aims $44-bn textiles exports in FY22, $100bn in next 5 yrs

- PLI scheme for 13 sectors announced in Budget 2021-22, with an outlay of Rs 1.97 lakh cr

- Govt lowered PLI for automobile sector to Rs26,000cr from Rs57,043cr

- However, Centre didn't disclose reasons for it

- But said the focus is more on electric and hydrogen fuel cell vehicles

New Delhi: The Cabinet on Wednesday approved the production-linked incentive (PLI) scheme worth Rs10,683 crore for textiles sector with an aim to boost domestic manufacturing and exports, Union Minister Anurag Thakur said. The decision was taken in a meeting which was chaired by Prime Minister Narendra Modi here.

The Cabinet has approved the PLI scheme for textiles for MMF (man-made fibre) apparel, MMF fabrics and ten segments/products of technical textiles with a budgetary outlay of Rs10,683 crore. PLI scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore.

The textiles ministry is aiming to notify production linked incentive (PLI) scheme for MMF (man-made fibre) and technical textile sectors within a week, and issue detailed guidelines by the end of the current month, a top government official said on Wednesday.

The government is believed to have slashed the outlay for the automobile sector under the production-linked incentive (PLI) scheme to about Rs 26,000 crore and the proposal is expected to be approved by the Union Cabinet soon, sources said. Last year, the government had announced a PLI scheme for the automobile and auto components sector with an outlay of Rs 57,043 crore, earmarked for five years. The sources did not disclose the reason for revising the scheme to Rs 25,938 crore, but stated that the focus is now more on battery electric and hydrogen fuel cell vehicles.

Textiles Secretary UP Singh also said that the ministry has undertaken a comprehensive consultation with all the concerned stakeholders before finalising the scheme. "There will be good takers of the scheme. We are targeting to notify the scheme within a week. And by September-end, we will be issuing the detailed guidelines," Singh told PTI.

A portal is being developed for implementing the scheme, which aims at boosting domestic manufacturing and creating a world-class facility for the sector, he added. "Tentatively, we are thinking of opening the window for the industry to apply for the scheme from November 1 to December 31.

Everything will be online, like submitting applications, approval process and disbursal of incentives," Singh said. Talking about the importance of MMF and technical textiles, he said the government is targeting to increase textiles exports to $44 billion this fiscal and $100 billion in the next five years. There is also an aim to increase the size of the industry from $140 billion to $250 billion in the coming years, "so this growth will come not only from cotton but from MMF and technical textiles," he added. The Union Cabinet on Wednesday approved the production-linked incentive (PLI) scheme worth Rs 10,683 crore for the textiles sector. The Cabinet has approved the PLI scheme for textiles for MMF (man-made fibre) apparel, MMF fabrics and ten segments/ products of technical textiles. 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 the first part of the scheme. In the second part, any person, (which includes a firm/company) willing to invest a minimum of Rs 100 crore shall be eligible to apply for participation in this part of the scheme.