Govt approves Rs 10,683 cr PLI scheme for textiles
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.
Taking steps forward towards the vision of an
â€˜Aatmanirbhar Bharatâ€™, the Union Government of India has approved the 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 for textiles
along with RoSCTL, RoDTEP and other measures of Government in sector e.g.
providing raw material at competitive prices, skill development etc will herald
a new age in textiles manufacturing.
PLI scheme for textiles is part of the overall
announcement of PLI Schemes for 13 sectors made earlier during the Union Budget
2021-22, with an outlay of Rs 1.97 lakh crore. With the announcement of PLI
Schemes for 13 sectors, minimum production in India is expected to be around Rs
37.5 lakh crore over 5 years and minimum expected employment over 5 years is
nearly 1 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. 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. In the second part any person, (which includes firm / company) willing
to invest minimum ?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.
It is estimated that over the period of five years,
the PLI Scheme for Textiles will lead to fresh investment of more than Rs 19,000
crore, cumulative turnover of over Rs 3 lakh crore will be achieved under this
scheme and, will create additional employment opportunities of more than 7.5
lakh jobs in this sector and several lakhs more for supporting activities. The
textiles industry predominantly employs women, therefore, the scheme will
empower women and increase their participation in formal economy.