Textile Ministry submits re-drafted PLI scheme with wider scope for Cabinet approval

The Textile Ministry has re-drafted the much-awaited ₹10,683 crore Manufacturing Linked Incentive (PLI) scheme for the textile sector, to incorporate a wider vary of things with deal with value-addition, and has submitted the contemporary Cupboard notice for approval after getting a nod from the Expenditure Finance Committee (EFC).

“After consultations with the trade and specialists, the Ministry re-drafted the record of things eligible for the PLI scheme to encourage extra worth addition. Calls for to decrease the turnover threshold to incorporate smaller gamers was additionally thought-about,” an official monitoring the matter advised BusinessLine.

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Following inter-ministerial consultations, a Cupboard notice was drafted on the advice of the EFC and has now been submitted to the Cupboard Secretariat, PMO and Division of Expenditure for approval of the Cupboard.

Focus Product Incentive Scheme

The PLI scheme for the Textile trade is to be applied by means of the Focus Product Incentive Scheme which is focussed on creating international champions in man-made fibre (MMF) and technical textiles sectors. The scheme will present incentive from 3 per cent to fifteen per cent on stipulated incremental turnover for a interval of 5 years after one 12 months gestation interval for brownfield funding (firms already in operation) and two years gestation interval for greenfield funding (new set-ups).

The preliminary plan of the Textile Ministry was to supply the ₹10,683 crore allotted underneath the scheme for incremental manufacturing in 40 recognized MMF attire objects and 10 technical textiles strains over 5 years.

However the trade and specialists identified that it was vital to not limit the advantages to end-products comparable to sweaters, clothes, diapers and sanitary napkins however to additionally prolong it to a lot wanted inputs for the trade comparable to fibre and filaments to encourage worth addition within the nation.

To be applied quickly

“The re-working of the record of things and contemplating calls for together with reducing eligibility threshold took a while. However the scheme is now prepared and shall be applied as quickly because the Cupboard provides its nod,” the official stated.

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As per the preliminary plans, for brownfield firms the inducement charges had been reportedly proposed to be mounted at 9 per cent of turnover within the first 12 months for firms with a turnover of ₹100-500 crore (for 50 per cent incremental turnover) and seven per cent for these above that. Within the subsequent 4 years it will maintain lowering.

For greenfield initiatives (new set-ups), a minimal funding of ₹500 crore was reportedly proposed with incentives at 11 per cent to start out with. The trade had complained that the edge ranges had been too excessive and wanted to be introduced down to incorporate small scale models.

Textiles is among the 13 sectors for which the Centre has introduced the PLI scheme to boost India’s manufacturing capabilities and exports.

https://www.thehindubusinessline.com/economic system/coverage/textile-ministry-submits-re-drafted-pli-scheme-with-wider-scope-for-cabinet-approval/article35348012.ece

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