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New Delhi: The Cabinet on Wednesday approved a Rs 10,683 crore Production-Linked Incentive (PLI) scheme for the textile sector with an aim to boost domestic manufacturing and exports.
The decision was taken in a meeting chaired by Prime Minister Narendra Modi here.
“The cabinet has approved the PLI scheme for ten segments/products of MMF (man-made fibre) apparel, MMF fabrics and technical textiles with a budgetary outlay of Rs 10,683 crore,” Textiles Minister Piyush Goyal told reporters here.
The PLI scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.
The textile scheme will help in promoting the production of high value MMF fabrics, garments and technical textiles in the country.
He said that the incentive structure has been designed in such a way that the industry will be encouraged to invest in new capacities in these areas.
This will give a major push to the growing high value MMF segment that will complement the efforts of the cotton and other natural fiber based textile industry in creating new employment and business opportunities, resulting in India achieving its historic dominant position in the global textile trade. will gain help in. added.
The technical textile segment is a new age textile whose application in many sectors of the economy including infrastructure, water, health and sanitation, defence, security, automobile, aviation will improve efficiency in those sectors of the economy.
Two types of investments are possible with different sets of incentive structures, an official statement said.
Any person (including firm/company) engaged in plant, machinery, equipment and civil works (excluding land and administrative building cost) to produce products of notified lines (MMF clothing, apparel) and technical products with a minimum of Rs.300 Ready to invest Rs. Textiles will be eligible to apply to participate in the first part of the scheme.
In the second part, any person, (which includes the firm/company) who wants to invest a minimum of Rs 100 crore, will be eligible to apply to participate in this part of the scheme.
Also, priority will be given to investment in aspirational districts, tier 3, tier 4 towns and rural areas and this will encourage priority industries to move to backward areas.
It is estimated that over a period of five years, the scheme for textiles will lead to fresh investments of over Rs 19,000 crore, achieve a cumulative business of over Rs 3 lakh crore and create additional employment opportunities under the scheme. More than 7.5 lakh jobs in this sector and several lakh more for ancillary activities.
Welcoming the decision, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that it will be a game changer for the Indian textile industry.
“India has abundant supply of MMF fiber and yarn but we do not have enough production of quality MMF fabric. The PLI scheme will strengthen the Indian manufacturing capacity of MMF fabrics thus increasing the share of MMF based fabrics year after year. It currently accounts for 20 percent of the total apparel produced in India. With the growth in the MMF segment, Indian apparel exports will double in the next three years,” he said.
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