Govt weighs second edition of PLI scheme for textiles industry
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May 21, 2022 The government is eyeing the second edition of production-linked incentive (PLI) scheme for textiles and has begun consultations with the industry.
Industry wants inclusion of knitted fabrics in the scheme, besides manmade fibre and technical textiles and a lower investment threshold of Rs 25 crore instead Rs 100 crore now. It also wants the government not to impose any condition to set up a new company for the purpose of investment.
"This was the preliminary round of consultations and it is an evolving situation. Many ideas will come in and we will consider them," said an official, who did not wish to be identified.
PLI 2.0 for the textile sector is being considered as the ministry has an unutilised budget of about Rs 4,000 crore after it approved 64 applications with an investment potential of Rs 19,798 crore and projected turnover of Rs 1.93 lakh crore in the next five yeaRs under the fiRs t phase of the scheme last month.
"We have suggested an expansion of the list of items that are eligible for incentives under PLI such as home textile and made-ups," an industry representative who participated in the consultation held this week told ET on condition of anonymity.
A lower investment threshold is a key demand. In part-1 of the PLI schemes, the minimum investment required is Rs 300 crore and the minimum turnover required to be achieved for incentive is Rs 600 crore while in part-2, the minimum investment should be Rs 100 crore and the minimum turnover is Rs 200 crore.
"They can't cover the same products with revised norms as that will not be fair," said another peRs on who attended the meeting, adding that the labour-intensive cut and sew segment is keen on incentives.
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