Category: General
Country: India
Ease of Doing Business for MSMEs: The textile ministry is considering PLI 2.0 since it has an unutilized budget of about Rs 4,000 crore after it approved 64 applications with an investment potential of Rs 19,798 crore and projected turnover of Rs 1.93 lakh crore in the next five years under the first phase of the scheme
Written by MSME Desk, September 22, 2022 6:35:23 pm
Ease of Doing Business for MSMEs: The government in the second edition of the production-linked incentive (PLI) scheme for textiles may introduce incentives for manufacturing of garments and home textiles such as blankets and bed spreads, and textile accessories like lace, button, and zippers, as per a report by The Economic Times.
The Ministry of Textiles is considering three investment thresholds of Rs 15 crore, Rs 30 crore and Rs 45 crore, with double turnover as the criteria for incentives that would range between 8% and 10% under the ₹4,200 crore scheme.
A minimum number of stitching and sewing machines could be added as another benchmark to avail the benefits.
“The scheme will attract investment and reduce the import dependence in textile accessories,” said an official. He added that such value addition sectors are labour-intensive that require low investment but have a high potential to create jobs.
The minimum turnover for the selected companies would be set at twice their investment in the first year and then 20 per cent increase in turnover over the previous year, as per the report.
The textile ministry is considering PLI 2.0 since it has an unutilized budget of about Rs 4,000 crore after it approved 64 applications with an investment potential of Rs 19,798 crore and projected turnover of Rs 1.93 lakh crore in the next five years under the first phase of the scheme.
The first edition of textile PLI scheme required minimum investment of Rs 100 crore and Rs 300 crore while the minimum turnover required to be met for incentive was Rs 200 crore and Rs 600 crore, respectively.
However, this time Industry had sought a lower investment threshold of ₹25 crore instead of ₹100 crore in the second PLI and also a waiver from the condition to set up a new company for investment purpose.
Courtesy: https://www.financialexpress.com/industry/sme/msme-eodb-pli-2-0-for-textiles-may-see-incentives-for-bed-spreads-blankets-and-textile-accessories-manufacturers/2686495/
Copyrights © 2024 GLOBAL TEXTILE SOURCE. All rights reserved.
