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Indian government notifies products eligible for PLI scheme

29 Sep '21
3 min read
Pic: Shutterstock
Pic: Shutterstock

The Production Linked Incentive (PLI) Scheme for promotion of man-made fibre (MMF) apparel, MMF fabrics and products of technical textiles, has come into effect with the issue of notification by the ministry of textiles on September 24. The PLI Scheme is aimed at enabling the country’s textiles industry to achieve size and scale, and to become competitive.

Incentives under the scheme will be available for 5 years period i.e. during FY 2025-26 to FY 2029-30 on incremental turnover achieved during FY 2024-25 to FY 2028-29 with a budgetary outlay of ₹10,683 crore. However, if a company is able to achieve the investment and performance targets one year early then, they will become eligible one-year in advance starting from 2024-25 to 2028-29 i.e. for 5 years.

The scheme covers 10 technical textile products, 14 MMF products and 40 MMF apparel. Only those companies which contribute 60 per cent value addition in integrated fibre/yarn to fabric, garment & technical textiles and 30 per cent in case of independent fabrics processing house would be selected for the incentive under the programme, the textiles ministry said in the notification.

It further said that only manufacturing company registered in India will be eligible to participate under the scheme. Participating companies will have to undertake processing and operation activities in their own factory premises.

The scheme outlines two categories with different incentives based on minimum investment of ₹300 crore and ₹100 crore, and covers products such as jackets, jerseys, trousers, overcoats, polyester fabric and nylon furnishing fabrics.

Geo-textiles, agro-textiles, medical/hygiene textiles, defence textile, mobile textiles, sports textiles, protective textiles, building/construction textiles, and specialty fibre & composites are the categories covered under technical textiles.

The government has also included ‘Smart Textiles’, a new generation niche product that is a combination of varieties of wearable materials embedded with electronics, embedded with active devices for medical, defence and special use in the list of products eligible for the benefits. There is no HSN Code for this product at present, and a suitable 8-digit code needs to be created afresh, the ministry said in its notification.

Only such sales will be counted, which are transacted through normal banking channel, for both parts of the scheme, according to the notification. As announced earlier, the minimum investment under part-1 of the scheme is ₹300 crore in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of the notified lines, whereas it is ₹100 crore under part-2.

Fibre2Fashion News Desk (RKS)

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