The second edition of the production linked incentive (PLI 2.0) scheme for textiles is likely to have an outlay of Rs. 4,307 crore and will cover manufacture of garments, made-ups and textiles accessories of all materials, natural or man-made, per the Cabinet note finalised by the Textiles Ministry.
While the existing edition of the PLI scheme for textiles, introduced in 2021, is limited to the production of man-made fibre fabrics and apparels and technical textiles, the second edition being proposed will be open for garments, made-ups and accessories of all materials including cotton, a source tracking the matter told.
“The government decided to go in for the second edition of PLI for textiles as the total corpus of 10,683 cr allocated for the scheme will not get used up as incentives for the 64 selected applicants under the first phase. Going by estimates, just a little over €6,000 cr will be used,” the source said.
The objective of the proposed PLI 2.0 is to enhance India’s manufacturing capabilities in value-added finished textile products which, by nature, re- quires low investment but has high employment generation capacity, according to another note.
The proposed minimum investment and turnover criteria is, therefore, considerably lower under the proposed scheme so that even MSMES can participate. “The qualifying investment under the pro- posed scheme is likely to be in the 15-45 cr range, with minimum prescribed turnover of 30-90 cr, to earn incentives ranging between 8 percent and 10 percent,” the source said.
The government may also do away with the condition of setting up of a new company to be eligible for the scheme. Instead, it may allow all companies registered in India to participate under conditions such as maintenance of separate ac- counts and counting investments in only new machines towards eligibility, sources said.
Once the Cabinet approves the proposal, the PLI 2.0 scheme for textiles would be announced and implemented.
