Govt notifies textile products under PLI Scheme

Govt notifies textile products under PLI Scheme

The Government of India has notified the Rs 106.83 billion Production Linked Incentive (PLI) scheme for textiles that covers 10 technical textile products, 14 manmade fibre (MMF) products and 40 MMF apparel.

New Delhi

The Government of India has notified the Rs 106.83 billion
Production Linked Incentive (PLI) scheme for textiles that covers 10 technical
textile products, 14 manmade fibre (MMF) products and 40 MMF apparel.

The Textiles Ministry said that only
those companies would be selected for the incentive under the programme which
contribute 60% value addition in integrated fibre/yarn to fabric, garment &
technical textiles and 30% in case of independent fabrics processing house.
Technical textiles include safety airbags, shade nets, bullet
proof jackets, surgical sutures, PPE for medical use and carbon fibre.

The
scheme outlines two categories with different incentives based on minimum
investment of Rs 3 billion and Rs. 1 billion and covers products such as
jackets, jerseys, trousers, overcoats, polyester fabric and nylon furnishing
fabrics.

The
Government has also included ‘Smart Textiles’, a new generation niche product
that is a combination of varieties of wearable materials embedded with
electronics, embedded with active devices for medical, defence and special use
in the list of products eligible for the benefits.

Any
person, which includes firm/company willing to invest a minimum Rs. 3 billion
in plant, machinery, equipment and civil works (excluding land and
administrative building cost) to produce products of the notified lines, will
be eligible to participate but they would have to form a separate company under
Companies Act, 2013, before commencement of
investment under this scheme.

For
getting incentive, both the conditions of minimum investment and minimum
turnover should be met. The companies which invest Rs. 3 billion are expected
to achieve a required turnover of Rs. 6 billion after a gestation period of two
years.

Incentive
in the subsequent years will be provided on achieving a minimum additional
incremental turnover of 25% over the preceding year’s turnover.

Image
Source: Google Image

Source: The Economic Times

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