NE BUSINESS BUREAU
CHENNAI, SEP 14
Taking steps forward towards the vision of an ‘Aatmanirbhar Bharat’, Government led by Prime Minister Narendra Modi has approved the PLI Scheme for Textiles for Man Made Fibre (MMF) Apparel, MMF Fabrics and 10 segments or products of Technical Textiles with a budgetary outlay of Rs. 10,683 crore.
PLI for Textiles along with RoSCTL, RoDTEP and other measures of Government in sector e.g. providing raw material at competitive prices, skill development etc will herald a new age in textiles manufacturing, says a senior official.
Sh Vijoy Kumar Singh, Addl Secretary, Ministry of Textiles addressing media at Chennai, Tamil Nadu, today, on Production Linked Incentive (PLI) Scheme for the Textile Industry approved by Cabinet on 8 Sept 2021#PLI4Textiles @TexMinIndia @PiyushGoyalOffc @PIBTextiles @PIB_India pic.twitter.com/UMa48vABVI
— PIB in Tamil Nadu (@pibchennai) September 14, 2021
The success of the scheme lies in the joint effort of the Centre, State governments and investors. Most of the State governments, including Tamil Nadu are willing to take it forward as there is awareness about the PLI scheme, said Vijoy Kumar Singh, Additional Secretary, Ministry of Textiles, the Government of India.
PLI scheme for Textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore. With the announcement of PLI Schemes for 13 sectors, minimum production in India is expected to be around Rs 37.5 lakh crore over 5 years and minimum expected employment over 5 years is nearly 1 crore.
- Help create additional employment of over 7.5 lakh people directly and several lakhs more for supporting activities
- Scheme will also pave the way for participation of women in large numbers
- Incentives worth Rs. 10,683 crore will be provided to industry over five years
- It is expected that this scheme will result in fresh investment of above Rs 19,000 crore and additional production turnover of over Rs.3 lakh crore in five years
- Higher priority for investment in Aspirational Districts & Tier 3/4 towns
PLI scheme for Textiles will promote production of high value MMF Fabric, Garments and Technical Textiles in country. 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.
#Cabinet approves Production Linked Incentive (PLI) Scheme for Textiles
Incentives worth ₹10,683 crore will be provided to the industry over five years#CabinetDecisions #PLI4Textiles pic.twitter.com/fmwrYL3CMd
— PIB India (@PIB_India) September 8, 2021
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, etc. will improve the efficiencies in those sectors of economy. Government has also launched a National Technical Textiles Mission in the past for promoting R&D efforts in that sector. PLI will help further, in attracting investment in this segment.
There are two types of investment possible with different set of incentive structure. 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 firm / company) willing to invest minimum ₹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 incentivized to move to backward area. This scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, AP, Telangana, Odisha etc.
It is estimated that over the period of five years, the PLI 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. The textiles industry predominantly employs women; therefore, the scheme will empower women and increase their participation in formal economy.
Preliminary investors meet
PLI Scheme for Textiles – Preliminary Investors' Meet jointly organised by GoTN and MoT, GoI at Chennai today. Chairman of ITTA and Vice-Chairman of SIMA, Dr.S.K.Sundararaman made a PPT on PLI. The meeting was attended by leading textile players in TN @TexMinIndia @CMOTamilnadu pic.twitter.com/6vSxHrtZrv
— SIMA (@sima_cbe) September 14, 2021
Earlier, a preliminary Investors’ Meet on PLI Scheme for Textiles jointly organised by Government of Tamil Nadu and Union Ministry of Textiles was held in a separate venue.
Chairman of ITTA and Vice-Chairman of SIMA, Dr.S.K.Sundararaman made a Power point presentation on PLI. The meeting was attended by leading textile players in TN, PIB souces said.
