Govt approves 96 companies under round-3 of PLI scheme for textiles

• The government has approved 22 new applicants under the Production Linked Incentive (PLI) scheme for textiles. 

• The newly approved companies are expected to bring in a total investment of Rs 2,339.14 crore, generate a projected turnover of Rs 15,561.34 crore in notified products, and create 36,217 employment opportunities across the textile value chain. 

• A total of 96 companies have been selected under round-3 of the scheme with a total committed investment of Rs 12,822.67 crore and a projected turnover of Rs 58,294.18 crore.

• The approved applicants span key focus segments of the PLI Scheme, including man-made fibre (MMF) apparel, MMF fabrics and technical textiles, thereby further strengthening India's position as a global hub for value-added textile manufacturing.

PLI scheme for textiles

• To strengthen the domestic manufacturing capacity, enhancing exports, generating employment and reducing the import dependence across multiple strategic sectors, the Production Linked Incentive (PLI) schemes have been implemented across 14 key sectors including textiles.

• The PLI schemes have facilitated fresh investments in the identified sectors and supported the expansion of manufacturing capacities.

• The PLI scheme for Textiles was approved with an outlay of Rs 10,683 crore in September 2021, to promote production of MMF apparel, MMF fabrics and products of technical textiles in the country to enable textile sector to achieve size and scale and to become competitive. 

• Performance years commences from financial year 2024-25 to 2028-29.

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

• 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.

• The Part-1 includes any company willing to create a separate manufacturing company under Companies Act 2013, and invest minimum Rs 300 crore (excluding land and administrative building cost) to manufacture notified products. Such companies will be eligible to get incentive when they achieve a minimum of Rs 600 crore turnover by manufacturing and selling the notified products by the first performance year.

• The Part-2 includes companies willing to create separate manufacturing company under Companies Act 2013, and invest minimum Rs 100 crore (excluding land and administrative building cost) to manufacture notified products. Such company will be eligible to get incentive when they achieve a minimum of Rs 200 crore turnover by manufacturing and selling the notified products by the first performance year.

• 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. 

• The scheme would help increase India’s share in the global man-made fibre and technical textiles sector.

(The author is a trainer for Civil Services aspirants.)