The ministry of textiles, Government of India, has released a draft on second round of production-linked incentive (PLI 2.0) scheme for the textile sector. The draft states that textile units can produce apparel, home textiles and textile accessories like embellishments, zippers, trimmings, and elastic tapes (under HS codes 61, 62 and 63) under the scheme.
Participating companies need to complete their investment during the two-year gestation period, i.e., 2022-23 and 2023-24. The required turnover must be achieved from the subsequent year, i.e., 2024-25.
For apparel and home textiles, the required minimum investment is ₹15 crore (minimum 1,000 machines) or ₹30 crore (minimum 2,000 machines) or ₹45 crore (minimum 3,000 machines). The annual turnover from the new investment should be ₹30 crore, ₹ 60 crore, or ₹90 crore, respectively. The qualifying investment and turnover for textile accessories is ₹10 crore and ₹20 crore respectively.
Around ₹4,300 crore of incentives will be provided by the government under the scheme, which is expected to generate new manufacturing estimated at ₹1,00,000 crore. The scheme has an incremental sales condition for five years, which is expected to help small and medium enterprises (SMEs) build the much-needed scale and competitiveness.
Further, if more than 20 companies are investing in projects together as a group, those companies can apply for benefits in terms of project cost due to joint purchases. Indian Texpreneurs Federation (ITF) has however suggested that the condition in the number of machineries required should be differentiated between apparel, home textiles, and accessories.
