Government to accept Textile PLI applications from Jan-22
The government has already announced an elaborate production linked incentive (PLI) scheme for 13 industrial sectors in India, with an overall allocation of Rs.197,000 crore. The idea of the PLI scheme is to encourage the production of goods in India with a view to create output, jobs and collateral downstream benefits in India.
The PLI scheme is an extension of the make-in-India plan which intends to reduce the dependence on other countries and encourage domestic manufacture. It will also be a scheme to encourage foreign manufacturers to make India their production base and avail of these incentives to give a boost to Indian infrastructure in the process.
Out of the 13 sectors identified for the PLI scheme, an important focus area is Textiles. The government has allocated Rs.10,683 crore over a period of 5 years for the textiles scheme. This scheme will encourage the manufacture of MMF apparel, MMF fabrics and production of technical textiles.
The PLI scheme for the textile industry will accept applications from businesses effective from 01st January 2022. The application window will remain open for a period of 1 month from 01st January 2022 till 31st January 2022. Companies looking to avail the scheme can apply from the following link (https://pli.texmin.gov.in/mainapp/).
Scheme 1 and Scheme 2 of Textile PLI scheme
There are 2 parts to the scheme as under:
Scheme Part - 1: Any person including Company / Firm / LLP / Trust willing to create a separate manufacturing company under Companies Act 2013, and invest minimum Rs.300 Crore (excluding land and administrative building cost) to manufacture Notified Products is eligible for the PLI scheme. Such company will be eligible to get incentive when they achieve a minimum of Rs.600 Crore turnover by manufacturing and selling the Notified products by the first Performance Year.
Scheme Part - 2: Any person including Company / Firm / LLP / Trust willing to create separate manufacturing company under Companies Act 2013, and invest minimum Rs.100 Crore (excluding land and administrative building cost) to manufacture Notified Products will be eligible for the PLI scheme. Such company will be eligible to get incentive when they achieve a minimum of Rs.200 crore turnover by manufacturing and selling the Notified products by the first Performance Year
The Participant shall be eligible for the incentives on achieving threshold investment and threshold / incremental turnover. Incentive will be calculated on achieving threshold turnover as mentioned above for Scheme Part 1 and Part 2. In case the prescribed conditions are not met in time, the incentive will be available from the year these are met, for a lesser number of years but rate of incentive applicable will be as prescribed for first year of the scheme and so on for remaining period.
Manufacture and sale of textile Products will be considered as permitted activities. But, turnover /sale of only Notified Products shall be considered for computation and availing incentive under the scheme. Accounts for both Notified and non-Notified Products will be maintained separately. Here is the checklist of documents before applying.
Start Investing Now!
Open Free Demat Account in 5 mins