President's Message

K. M. Subramanian

 

Production Linked Incentive (PLI) Scheme - strengthening the export potential of the MMF sector

The Government of India has announced several important schemes with the objective of increasing India’s share in the global man-made fibre (MMF) value chain. The fibre ratio in India currently stands at 65% cotton and 35% man-made fibre (MMF), unlike the global trend where MMF dominates. Hence, the export potential in the MMF segment is very high. To address these challenges and position India as a leading country in MMF-based textile manufacturing, the Government introduced a comprehensive Production Linked Incentive (PLI) Scheme. This scheme will usher in a new phase of growth for the MMF sector and expressed confidence that, with the development of a strong ecosystem, India will soon achieve the same remarkable performance in MMF as it has in the cotton sector. In order to enable more entrepreneurs to participate in the scheme, the Government has made modification in the Scheme.

Highlights of PLI Scheme

• Extensive & Diverse Product Basket of 225 products
• High Incentive Rate of 15% /11% of turnover
• Incentives based on incremental turnover year-on-year
• Participation of integrated textile manufacturing units encouraged
• Business flexibility to set up units within existing companies
• All major Technical Textiles segments are covered

Modified Scheme Structure

• Minimum Investment required: Part-1:₹ 150 crore, Part-2: ₹ 50 crore
• Investment includes plant & machinery, equipment and civil works excluding land and administrative building cost.
• Minimum Turnover required to claim incentive for first year: Part-1:₹ 600 crore, Part-2: ₹ 200 crore
• Turnover includes sales value of notified products cleared under GST Invoices through normal banking channel
• Minimum incremental turnover 10% over immediate preceding year
• Minimum Domestic Value: 60% for intergrated units, 30% for independent processing units.
• Avail benefit within the ambit of existing company by setting up a separate project unit
• Foreign investment allowed as per FDI Policy norms
• No limit on higher investments for enhancing capacity.

Members are requested to take advantage of the Production Linked Incentive (PLI) Scheme and participate in the quantum jump in MMF Apparel exports.

Join India's Textile Manufacturing Revolution