PLI (Production Linked Incentive) Scheme – Textile Industry
Production Linked Incentive is also commonly known as PLI scheme. This PLI scheme offers incentives on incremental sales from items produced in India over the base year. Apart from scaling up local production, the scheme also seeks to curb cheaper imports and reduce import bills.
#Watch LawWiser Shorts, where Mukund P Unny, Advocate, Supreme Court of India, shares his quick take on the PLI scheme for the textile industry.
The PLI scheme for textile has been given cabinet clearance and this scheme is slated to improve business in the textile industry in a big way. Interestingly, the purport of the scheme is limited to just man-made fibres, apparel.
He shares that the total budgeted outlay is around 10,000 crore and the government has designed the scheme to try and ensure that there is a recovery in textile production in India. The scheme seeks to help those industries that invest in the production of 64 select products.
The scheme is for two types of investments. One- there should be a minimum of ₹300 crore investment in plant, machinery, equipment. That investment must translate into a minimum turnover of ₹600 crores once it commences operation. Second, there should be a minimum investment of ₹100 crores, and eventually, this company should achieve a minimum turnover of ₹200 crores.
Thus, the incentive is based on a combination of investment and turnover. The incentives will be paid for five years after the first year of post-investment operation. The textile industry is human resource-oriented in great deal, and it will be in job creation in this segment.
Watch this to know more on #PLIscheme for #textileindustry in India. To get featured in more such conversations, write us on editorial@lawwiser.com
