Indian govt releases draft PLI 2.0 for apparel & home textiles

Participating companies need to complete their investment during the two-year gestation period, i.e., 2022-23 and 2023-24. The required turnover has to be achieved from the subsequent year, i.e., 2024-25.

For apparel and home textiles, the required minimum investment is ₹15 crore (minimum 1,000 machines) or ₹30 crore (minimum 2,000 machines) or ₹45 crore (minimum 3,000 machines). The annual turnover from the new investment should be ₹30 crore, ₹ 60 crore or ₹90 crore, respectively. The qualifying investment and turnover for textile accessories is ₹10 crore and ₹20 crore respectively.

Around ₹4,300 crore of incentives will be provided by the government under the scheme, which is expected to generate new manufacturing estimated at ₹1,00,000 crore.

The scheme has an incremental sales condition for five years, which is expected to help small and medium enterprises (SMEs) build the much-needed scale and competitiveness.

Further, if more than 20 companies are investing in projects together as a group, those companies can apply for benefits in terms of project cost due to joint purchases.

The scheme is open to all manufacturers—both exporters and sellers in the domestic market—that meet the requirements laid in the draft.

Coimbatore-based Indian Texpreneurs Federation (ITF) has however suggested that the condition in the number of machineries required should be differentiated between apparel, home textiles, and accessories.

Earlier in April this year, the Selection Committee chaired by secretary, ministry of textiles, UP Singh, selected 61 applicants under Production Linked Incentive (PLI) Scheme (now PLI 1.0) for textiles. In the 61 applications approved, the proposed total investment expected from the applicants is ₹19,077 crore and a projected turnover is ₹184,917 crore over a period of 5 years with a proposed direct employment of 240,134.

PLI 1.0 for textiles products, namely MMF apparel, MMF fabrics and products of technical textiles, has two parts, Part 1 where minimum investment is ₹300 crore and minimum turnover required to be achieved for incentive is ₹600 crore; and Part-2, where minimum investment is of ₹100 crore and minimum turnover required to be achieved for incentive is ₹200 crore.

The approved financial outlay for PLI 1.0 is ₹10,683 crore over a five-year period.

Fibre2Fashion News Desk (RKS)