09 September 2021

Production Linked Incentive (PLI) Scheme for textiles approved by Union Cabinet

As part of the earlier announcement of PLI Schemes for 13 sectors, the Union Government has, on 8 September 2021, approved a Production Linked Incentive Scheme for textiles. The Scheme with a budgetary outlay of INR 10,683 crore over five years, will be applicable for man-made fiber (MMF) apparel, MMF fabrics and 10 segments/products of technical textiles.

As per the Press Release issued by the Union Cabinet, the incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments.

Broadly, according to the Press Release, there are two types of investment possible with different set of incentive structure.

  • Any person willing to invest minimum INR 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 firm / company) willing to invest minimum INR 100 crore shall be eligible to apply for participation.

In addition, priority will be given for investment in aspirational districts, Tier 3, Tier 4 towns, and rural areas.

It may be noted that the formal notification is yet to be issued by the line Ministry of the Government of India.

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