Production Linked Incentive (PLI) Scheme
Context:
• As many as 61 applications, for projects entailing investment of ₹19,077 crore, have been approved under the Production Linked Incentive (PLI) Scheme for textiles.
About:
• To make India a manufacturing hub, the government had announced the PLI scheme for mobile phones, pharma products, and medical equipment sectors.
• The government has extended the production-linked incentive (PLI) scheme to 7-8 more sectors including textiles.
• In order to boost domestic manufacturing and cut down on import bills this scheme was introduced.
• PLI scheme aims to give companies incentives on incremental sales from products manufactured in domestic units.
PLI for the Textile Industry:
• Promotes the creation of high-value Man-Made Fibre (MMF) fabrics, apparel, and technical textiles.
• Over a five-year period, incentives worth Rs 10,683 crore will be given to the sector on production.
Two phases of incentives for qualifying producers:
• First, anyone or any firm willing to invest at least Rs 300 crore in plant, machinery, equipment, and civil works (excluding land and administrative building costs) to create MMF fabrics, garments, and technical textile items will be eligible to participate.
• Second, investors wishing to invest a minimum of Rs 100 crore under the same terms (as in the first phase) are entitled to apply.
Source: THE HINDU.
