The central government on Thursday approved 61 out of 67 applications which have an investment potential of more than Rs 19,000 crore under the PLI program for textiles.
Textiles Secretary Upendra Prasad Singh said: “Of the 67 applications, 61 were approved for the Production Linked Incentive Scheme (PLI) in textiles. Up to Rs 19,077 crore is to be invested. by the 61 applicants in India.”
The expected revenue is Rs 18.4917 crore over a period of 5 years and employment generation is estimated at 2.40 lakh, he said.
“We expect actual revenue to be higher as these applicants will also manufacture non-notified products, but the benefits of the PLI will not be extended for these,” Singh said.
He said the PLI program is for synthetic fibers and technical textiles. “India is the largest producer of cotton. Our goal is to achieve an export target of $100 billion for textiles,” he said, adding that synthetic fibers and technical textiles are the two main contributors due to India’s advantage and global demand. The application window was open for 2 months.
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The Textiles Secretary added that quite a number of states have been covered by the program. “Of the 61 approved applicants, 8 are from Uttar Pradesh, 7 from Andhra Pradesh and 15 from Gujarat,” he said.
He added that in terms of investment, there are 13 companies including Trident Ltd, Shahi exports Pvt Ltd. The highest investment is Goa Glass Fiber which will invest Rs1654cr. Trident will invest 1609 crore and MCPI will put in Rs1383 crore.
The government will carry out a quarterly follow-up of the investments and the turnover committed by the companies within the framework of their requests, he specified.
Talking about the high import duties on cotton, he said it does not give importers any advantage. “We have therefore decided to reduce the duties, after consultation with the Ministry of Revenue and Agriculture,” he said.
The removal of import duties will have a salutary impact on cooling high cotton prices, he added. “Previously, import duties included 5% BCD and 5% AIDC and 0.5% agriculture was applicable on cotton,” he said.
He also said he received proposals from 13 states to develop 17 dedicated textile parks.
He said the expense for PLI was Rs 10,683 crore. The expense was there for PLI, but the incentive expense is Rs 6,600 crore. “With the remaining budget, we intend to launch PLI 2.0. We plan to use this money for the garment industry in the future,” he said, adding that there are seven companies that have global partners.
First post: STI