The Production Linked Incentive (PLI) is fast catching up the momentum, giving enough hints to change the course of the industries.
The promise to create lakhs of jobs also appears to fructify with the number of applicants being on the rise in defined sector.
In a recent move, the Ministry of Textiles has selected 61 applicants under PLI Scheme for Textiles.
A total of 67 applications were received for the PLI scheme out of which 15 applications are under Part-1 and 52 applications are under Part-2.
The PIL scheme offers financial incentives to boost domestic manufacturing related to 13 sectors.
PLI scheme aims to give companies incentives on incremental sales from products manufactured in domestic units covering 13 sectors.
Each PLI scheme is applicable for a four to six-year duration period, depending on the sector.
The proposed total investment expected from the applicants is Rs. 19,077 crore and a projected turnover is Rs. 184,917 crore over a period of 5 years with a proposed direct employment of 240,134.
The scheme has two parts- part 1 where minimum investment is Rs. 300 crore and minimum turnover required to be achieved for incentive is Rs.600 crore and part-2, where minimum investment is of Rs. 100 crore and minimum turnover required to be achieved for incentive is Rs. 200 crore.
Government approved PLI scheme for textiles products, namely MMF Apparel, MMF Fabrics and Products of Technical Textiles for enhancing India’s manufacturing capabilities and enhancing exports with an approved financial outlay of Rs 10,683 crore over a five-year period.
To further boost the growth of the sector, centre also removed the import duty of cotton.
The notification for the scheme was issued on 24.09.2021. Operational guidelines for PLI scheme were issued on 28.12.2021.
Applications under PLI Scheme for Textiles were received through web portal from 01.01.2022 to 28.02.2022.
Government exempts all customs duty on Cotton imports
The government has decided to exempt all customs duty on import of cotton to lower the price of cotton in the public interest.
This exemption would benefit the textile chain- yarn, fabric, garments and made ups and provide relief to textile industry and consumers. Industry has been demanding for removal of 5% Basic Customs Duty (BCD) and 5% Agriculture Infrastructure and Development Cess (AIDC) on raw cotton.
The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption from customs duty and Agriculture Infrastructure development Cess for import of cotton.
This notification shall come into effect from 14th April 2022 and will remain in force upto and inclusive of the 30th September 2022. Removal of import duty on raw cotton should have salutary effect on cotton price in India.
Here it is worth noting that although India is the largest producer of cotton, it is necessary to make the mark in manmade fibres as well if India were to achieve the textile export target of USD 100 billion by 2030. Elaborating on the immense scope and potential of technical textiles, the ministry said that sectors such as geo-textiles need much more encouragement to improve use, demand and penetration and intensive research and development activities.
