PLI scheme 2.0 for textiles

The scheme of PLI which stands for the production-linked incentive, is a scheme p proposed by the government of India. Now, the second edition of the PLI scheme for textiles is in the picture. The specifics of the second edition of the PLI scheme, include product coverage, manufacturing of garments, and home textiles.   

Through the scheme of PLI 2.0 for the textile sector, the ministry has an unutilized budget of about Rs 4,000 crore. As the ministry approved 64 applications with an investment potential of Rs 19,798 crore and a projected turnover of Rs 1.93 lakh crore in the next five years under the first phase of the scheme last month. 

Aim of the scheme  

• The scheme PLI 2.0 aims to offer incentives for the manufacturing of garments and home textiles for example blankets and bedspreads, and textile accessories like lace, button, and zippers.
• The scheme will support investment and reduce the import dependence on textile accessories. 
   
   

Who are eligible  

• Home textile
• Made-ups
• Other industries in this field.

Grant -aid  

The textiles ministry is considering three investment thresholds of 15 crores, 30 crores, and 45 crores, with double turnover as the criteria for incentives that would range between 8% and 10% under the 4,200 crore under the scheme.  

This is supposed to add a minimum number of stitching and sewing machines as another benchmark to avail the sops. 

The government will support the overall textile industry, and target export growth of 8-10 percent for the first two months of FY23, with the apparels and garments segment seeing a growth of 20 percent.  

To manage the current prices of raw cotton and cotton yarn. Because the situation in the textile industry became grave when some southern spinning mills shut shop due to the non-availability of cotton at affordable rates. Cotton prices more than doubled in the past year. 

These are the figures of the schemes mentioned in the table given below- 

The figures for the scheme 

Under the scheme of PLI  

The scheme has two parts and a total of 67 applications have been received for the PLI scheme out of which 15 applications are under Part 1 and 52 applications are under Part 2.  finally, the election Committee chaired by the Secretary of Textiles has selected 61 applicants. 

• In part 1 of the PLI schemes, the minimum investment required was Rs 300 crore and the minimum turnover required to be achieved for incentive was Rs 600 crore.
• In part 2, the minimum investment was Rs 100 crore and the minimum turnover was Rs 200 crore.