August 13, 2022 The Indian government is working to replace Amended Technology Upgradation Fund Scheme (ATUFS) on the pattern of Production-Linked Incentive (PLI) scheme. The ministry of textiles has requested the Office of the Textile Commissioner to share the draft note among stakeholders of textile manufacturing industry. ATUFS ended on March 31, 2022. As per draft concept note issued by the ministry, new scheme will promote indigenous development and manufacturing of textile machinery in line with the government’s flagship initiative Atmanirbhar Bharat. It will focus on sustainability, compliance, innovation and job creation to improve scale and technology simultaneously.
The draft proposal prepared by the ministry for incentivising modernisation in textile sector on PLI pattern comprises two parts. The Part-1 of the scheme will incentivise indigenous development and manufacturing of textile machinery, while Part-2 will support modernisation of various segments and weak links of textile value chain.
As per the draft proposal, integrated fabric manufacturing unit in MSME category for daily production of 16,000 metre (worsted, polyester or viscose suiting fabric) will have total investment of ₹34.56 crore. It will have annual turnover of ₹106 crore and will generate 121 jobs. Non-MSME unit of the same process will have investment of ₹170 crore and turnover of ₹550 crore and will generate 605 jobs.
Fabric processing units of ETP/Printing in non-MSME category will have investment of ₹81.62 crore, annual turnover of ₹153 crore and will create employment opportunity for 280 persons. MSME unit in the same process will have investment of ₹39.17 crore, turnover of ₹47 crore and will create 70 jobs.
Garment units in MSME category will have investment of ₹12.39 crore and turnover of ₹100 crore and will employ 700 people.
According to the draft proposal, spinning unit in non-MSME category will have investment of ₹99.16 crore, turnover of ₹500 crore and will provide jobs to 325 youth. Knitting unit in MSME will be set up with an investment of ₹28.84 crore and it will have turnover of ₹100 crore, employing 100 people.
Likewise, technical textile unit in non-MSME category will have investment of ₹98.25 crore, turnover of ₹105 crore and will be able to employ 103 persons.
The draft proposal says that incentives will be provided to units based on the turnover achieved after making a threshold investment in modernisation through installation of benchmarked technology relevant to the segment.
The Office of the Textile Commissioner is tasked with collating the inputs/views and suggestions from stakeholders of the textile manufacturing industry and forward to the ministry by August 15, 2022.