Industry wants the inclusion of knitted fabrics in the scheme, besides manmade fiber and technical textiles, and a lower investment threshold of Rs25 crore instead of Rs 100 crore
The government is eyeing the second edition of the production-linked incentive (PLI) scheme for textiles and has begun consultations with the industry.
Industry wants the inclusion of knitted fabrics in the scheme, besides manmade fiber and technical textiles, and a lower investment threshold of Rs 25 crore instead of Rs 100 crore now. It also wants the government not to impose any conditions to set up a new company for the purpose of investment.
“This was the preliminary round of consultations and it is an evolving situation. Many ideas will come in and we will consider them,” said an official, who did not wish to be identified.
PLI 2.0 for the textile sector is being considered as the ministry has an unutilized budget of about Rs 4,000 crore after it approved 64 applications with an investment potential of Rs 19,798 crore and projected turnover of Rs 1.93 lakh crore in the next five years under the first phase of the scheme last month.
“We have suggested an expansion of the list of items that are eligible for incentives under PLI such as home textile and made-ups,” an industry representative who participated in the consultation held this week told ET on condition of anonymity.
A lower investment threshold is a key demand. In part 1 of the PLI schemes, the minimum investment required is Rs 300 crore and the minimum turnover required to be achieved for the incentive is Rs 600 crore while in part 2, the minimum investment should be Rs 100 crore, and the minimum turnover is Rs 200 crore.