The union cabinet has approved the proposal for production-linked incentive (PLI) scheme for specific segments in the textiles sector. The decision was taken in a meeting. chaired by Prime Minister Narendra Modi.The cabinet “has approved the PLI scheme for textiles for MMF (man-made fibre) apparel, MMF fabrics and ten segments/ products of technical textiles with a budgetary outlay of Rs 10,683 crore,” Textiles Minister Piyush Goyal told reporters here.
Here is all you need to know
The PLI scheme worth Rs 10,000 crore is aimed to scale up exports and boost domestic manufacturing.
The new scheme will help in creating direct additional employment of more than 7.5 lakh people and several lakhs more for supporting activities
As per the government estimates,over the next five years, PLI Scheme will result in a fresh investment of more than Rs.19,000 crore, along with a cumulative turnover of over Rs.3 lakh crore.
The incentive structure has been so formulated that industry will be encouraged to invest in fresh capacities in these segments, according to the government
The move would also 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
The scheme will prioritise investment in aspirational districts, tier 3, tier 4 towns, and rural areas.
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PLI scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore.
The minister of textiles added that factories based around aspirational districts or Tier-3 & Tier-4 cities will be given priority, which will especially benefit states like Gujarat, Uttar Pradesh, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, Telangana. “
