All you need to know about Centre’s Rs 10,683 crore PLI scheme for textile sector

The scheme will create "additional employment opportunities of more than 7.5 lakh jobs in this (textiles) sector and several lakhs more for supporting activities", said the communique from the government.

Under the PLI scheme, the government has pledged to make greenfield (new companies being set up) and brownfield (companies that are already in operation) investments.

Under the five-year scheme, companies producing over 50 man-made fibre garments and fabrics and a handful of technical textiles products will be eligible for incentives.

"Companies that will set up factories in aspirational districts and Tier-III and Tier-IV will be given priority while allocating incentives," said Union textile minister Piyush Goyal.

Major provisions of the PLI scheme

Under PLI, the Centre will subsidise eligible manufacturers by paying incentives on incremental production. Companies investing over Rs 300 crore in plant, machinery, equipment and civil works to produce the identified products will get an incentive of 15 percent of their turnover, which needs to be Rs 600 crore in the third year.

Besides, the companies investing between Rs 100 crore and Rs 300 crore will also be eligible to receive duty refunds and incentives (lower than 15 percent of their turnover).

The government expects to achieve "fresh investment of over Rs 19,000 crore and a cumulative turnover of more than Rs 3 lakh crore".

The detailed guidelines of the scheme will be announced by the end of this month and applications will open for companies in November and December.