Govt approves Rs 10,683 cr PLI scheme for textiles

The Cabinet on Wednesday approved the production-linked incentive (PLI) scheme worth Rs 10,683 crore for textiles sector with an aim to boost domestic manufacturing and exports.

The decision was taken in a meeting which was chaired by Prime Minister Narendra Modi.

The Cabinet "has approved the PLI scheme for textiles for MMF (man-made fibre) apparel, MMF fabrics and ten segments/ products of technical textiles with a budgetary outlay of Rs 10,683 crore," Textiles Minister Piyush Goyal told reporters.

PLI scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.

The scheme for textiles will help promote production of high value MMF Fabric, Garments and Technical Textiles in the country.

The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments, he said.

This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade, he added.

The technical textiles segment is a new age textile, whose application in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, will improve the efficiencies in those sectors of economy.

An official statement said that there are two types of investment possible with different sets of incentive structures.

Any person, (which includes firm/company) willing to invest minimum Rs 300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of notified lines (MMF fabrics, garment) and products of technical textiles, shall be eligible to apply for participation in first part of the scheme.

In the second part, any person, (which includes a firm/company) willing to invest a minimum Rs 100 crore shall be eligible to apply for participation in this part of the scheme.

In addition, priority will be given for investment in aspirational districts, tier 3, tier 4 towns, and rural areas and due to this priority industry will be incentivised to move to backward areas.

It is estimated that over the period of five years, the scheme for textiles will lead to fresh investment of more than Rs 19,000 crore, cumulative turnover of over Rs 3 lakh crore will be achieved under this scheme and, will create additional employment opportunities of more than 7.5 lakh jobs in this sector and several lakhs more for supporting activities.

Welcoming the decision, Apparel Export Promotion Council (AEPC) chairman A Sakthivel said that it will be a game changer for the Indian textile industry.

"India has an abundant supply of MMF fibre and yarn but we do not have enough production of quality MMF fabric.

"The PLI scheme will strengthen the Indian manufacturing capacity of MMF fabric and will thus increase the share of MMF based garments year after year.

"It is currently 20 per cent of the total apparels produced in India.

"With increase in MMF segment, the Indian apparel exports will double in next three years," he said.

Photograph: Krishnendu Halder/Reuters