COMPANIES

No Data Found

NEWS

No Data Found
Cabinet approves Rs 10,683 crore PLI scheme for textile sector

Cabinet approves Rs 10,683 crore PLI scheme for textile sector

The scheme will help in increasing India's share in manmade textiles and technical textiles sector, Textiles Minister Piyush Goyal said.

BusinessToday.In
  • Updated Sep 8, 2021 3:33 PM IST
Cabinet approves Rs 10,683 crore PLI scheme for textile sectorThe PLI scheme will cost Rs 10,683 crore over a period of five years.

The Union Cabinet on Wednesday approved production linked incentive (PLI) scheme for textile sector for manmade fibre (MMF) apparel and fabrics and 10 segments of technical textiles to make the Indian textile sector globally competitive.
 
The scheme will cost Rs 10,683 crore over a period of five years and will create direct jobs for over 7.5 lakh people, I&B Minister Anurag Thakur said while briefing media about the Cabinet decisions.
 
The scheme will help in increasing India's share in manmade textiles and technical textiles sector, Textiles Minister Piyush Goyal said.
 
"PLI for textiles along with RoSCTL (Rebate of State and Central Levies and Taxes), RoDTEP (Remission of Duties and Taxes on Exported Products) and other measures of government in sector e.g. providing raw material at competitive prices, skill development etc will herald a new age in textiles manufacturing," the government said in a release.
 
The PLI scheme for textiles is part of the overall announcement of PLI schemes for 13 sectors made earlier during the Union Budget 2021-22 with an outlay of Rs 1.97 lakh crore.
 
The scheme will have two categories -- for a minimum investment of Rs 100 crore and another one for minimum investment of Rs 300 crore. The government expects the scheme to bring in total investment of over Rs 19,000 crore in five years and a cumulative turnover of over Rs 3 lakh crore.
 
Also Read: Cabinet increases MSP for rabi crops for 2022-23 marketing season

Advertisement

"The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to growing high value MMF segment which will complement the efforts of cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade," the government said.
 
Technical textiles have applications in several sectors of economy, including infrastructure, water, health and hygiene, defense, security, automobiles, aviation, among others, and the PLI scheme will improve the efficiencies in these sectors of the economy.
 
Under the scheme, higher priority will be given for investments in aspirational districts, tier-3 and tier-4 cities and rural areas to incentivise industry to move to backward areas. The scheme will positively impact states like Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana and Odisha, among others.
 
Since the textiles industry predominantly employs women, the scheme will also empower women and increase their participation in the formal economy.
 
With this scheme, the government has announced PLI schemes for 13 sectors which it said will lead to a minimum production of Rs 37.5 lakh crore in India over five years and generate minimum employment for nearly 1 crore people over the period.

Advertisement

Also Read: RBI's tokenisation facility to help customers make recurring, one-click purchases

 

 

Published on: Sep 8, 2021 2:22 PM IST
Post a comment0