Cabinet approves ₹10,683 crore incentive scheme for textile sector

Union Ministers Piyush Goyal and Anurag Singh Thakur briefing the press about Cabinet decisions at National Media Centre, in New Delhi on September 8, 2021.   | Photo Credit: Shiv Kumar Pushpakar

The Central government on September 8 approved production-linked incentive (PLI) for the textile sector with a budgetary outlay of ₹10,683 crore.

The scheme is for man-made fibre (MMF) apparel, MMF fabrics and 10 segments/products of technical textiles.

According to an official statement, the incentive structure for the textile sector is designed to encourage investment in fresh capacities in MMF apparel, MMF fabrics, and 10 segments or products of technical textiles.

The scheme envisages two types of investment with different set of incentive structure. In type one, any person, (which includes firm/company) willing to invest minimum ₹300 crore in plant, machinery, and civil works (excluding land and administrative building cost) to produce the notified products will be able to participate in the scheme. In the second type, anyone willing to invest minimum ₹100 crore will be eligible to participate.

Further, priority will be given for investment in aspirational districts, tier-three, tier-four towns and rural areas. The scheme will benefit States such as Gujarat, U.P., Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana, and Odisha.

The scheme is expected to attract fresh investment of more than ₹19,000 crore and cumulative turnover of over ₹3 lakh crore will be achieved under this scheme. It will create additional 7.5 lakh jobs in the sector, the release said.

The government has already launched a National Technical Textiles Mission to promote research and development in that sector.

Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Oct 29, 2021 12:30:38 AM |

Next Story