Textile minister Piyush Goyal to review PLI scheme

Textile minister Piyush Goyal to review PLI scheme

According to the sources, the new Textile Minister, Piyush Goyal is going to review a proposed 106.83 billion production-linked incentive (PLI) scheme related to products made of man-made fibre and technical textiles.

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According to the sources, the new Textile
Minister, Piyush Goyal is going to review a proposed 106.83 billion
production-linked incentive (PLI) scheme related to products made of man-made
fibre and technical textiles.

As per the PLI scheme draft, it has been
proposed by the textile ministry that incentive in the range of 7 to 11% will
be given in the first year. The firms with a turnover of at least Rs 1 billion
were to make the cute. Also, this benefit will be reduced by 100 points year
after year. According to the official sources, this scheme is important because
it has the potential to create a huge number of jobs. The minister’s guidance
will be sought and he will review it.

As per the scheme, an 11% incentive to
large companies for investments over Rs 5 billion in greenfield projects in
technical textiles will be given. The firms with an annual turnover of Rs 1 to
5 billion will be eligible to get an incentive of 9% for brownfield projects.

According to Raja M Shanmugham, President,
Tirupur Exporters Association, the criteria need to be relaxed and the cotton
products that see substantial value addition need to be brought under the
umbrella. This is applicable for a large number of MSMEs to reap the benefits of the PLI scheme.

Source – Financial Express

Image Source: Wikipedia

Also Read:

https://indiantextilejournal.com/latest-textile-industry-news/piyush-goyal-takes-charge-as-textile-minister

https://indiantextilejournal.com/latest-textile-industry-news/govt-may-notify-pli-scheme-for-textile–auto-components

 

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