About a dozen eligible textile companies are set to receive the first-ever set of incentive payments under the Production Linked Incentive (PLI) scheme for textiles.
“Around 40 companies have already grounded investment. We had a gestation period till March 2024. We are hoping that in this financial year, 10-12 companies will be getting incentive payout under PLI,” a senior government official said on Friday.
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The scheme was launched in 2021 to boost domestic manufacturing of man-made fabric (MMF), garments, and technical textiles, with a budgetary outlay of Rs 10,683 crore. The scheme, however, received a lukewarm response from private players.
The development is significant, considering that earlier this year, a cabinet secretary-led committee had also flagged the ‘shortfall’ in the progress of investments during the financial year 2023-24 in three out of the 14 PLI sectors, including textiles.
The textiles ministry had first released the guidelines of the scheme in December 2021. However, the government received 64 applications with commitments worth approximately Rs 6,000 crore. This was also because some players informed the government that they were not keen on making investments in the proposed textile categories due to lack of expertise.
MMFs include viscose, polyester, and acrylic, which are made from chemicals. Exporters believe that MMF apparel currently accounts for a fifth of India’s overall apparel exports. Technical textiles, on the other hand, are new-age textiles that can be used for the production of personal protective equipment (PPE) kits, airbags, bulletproof vests, and in sectors such as aviation, defence, and infrastructure.
The textiles ministry has also sought the approval of the Union Cabinet for another PLI scheme for the textile sector, focusing on the apparel segment. The budget for the scheme is expected to be Rs 4,000 crore—the unutilised funds under the scheme.
The second edition of the PLI scheme will have special emphasis on micro, small, and medium enterprises (MSMEs).
First Published: Sep 27 2024 | 6:13 PM IST
