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Govt notifies textile products under PLI Scheme

Oct 01, 2021
Govt notifies textile products under PLI Scheme

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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