March 26, 2023

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Govt weighs second edition of PLI scheme for textiles industry, Retail News, ET Retail

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The government is eyeing the next version of creation-connected incentive (PLI) plan for textiles and has begun consultations with the marketplace.

Business wishes inclusion of knitted materials in the plan, in addition to manmade fibre and specialized textiles and a decrease investment decision threshold of Rs 25 crore instead Rs 100 crore now. It also desires the government not to impose any issue to set up a new company for the function of expenditure.

“This was the preliminary spherical of consultations and it is an evolving situation. Several suggestions will appear in and we will look at them,” reported an formal, who did not wish to be recognized.

PLI 2. for the textile sector is becoming viewed as as the ministry has an unutilised price range of about Rs 4,000 crore immediately after it approved 64 purposes with an expense potential of Rs 19,798 crore and projected turnover of Rs 1.93 lakh crore in the upcoming five Decades under the fiRs t phase of the scheme final thirty day period.

Govt weighs second edition of PLI scheme for textiles industry
“We have instructed an expansion of the listing of items that are suitable for incentives less than PLI such as household textile and produced-ups,” an industry agent who participated in the consultation held this week advised ET on situation of anonymity.

A decrease investment threshold is a important need. In element-1 of the PLI schemes, the minimum investment decision demanded is Rs 300 crore and the minimum amount turnover necessary to be realized for incentive is Rs 600 crore even though in part-2, the minimum expenditure should be Rs 100 crore and the bare minimum turnover is Rs 200 crore.

“They are not able to deal with the identical goods with revised norms as that will not be good,” explained another peRs on who attended the assembly, including that the labour-intense slice and sew phase is keen on incentives.