The second edition of the production-linked incentive (PLI) scheme for textiles can offer incentives for manufacturing of apparels and home textiles such as blankets and bed spreads, and trims like lace, button and zippers.
As per a report of Economic Times, a leading business daily, MoT is considering three investment thresholds of Rs. 15 crore, Rs. 30 crore and Rs. 45 crore, with double turnover as the criteria for incentives that would range between 8 per cent and 10 per cent under the Rs. 4,200 crore scheme.
It is also likely to add a minimum number of stitching and sewing machines as another benchmark to avail the sops.
As per MoT, the idea is to push investment and minimise the import dependence in trims, besides helping to create jobs.
The first phase of PLI has approved 64 applications with an investment potential of Rs. 19,798 crore and projected turnover of Rs. 1.93 lakh crore in the next five years under the scheme.
The industry had insisted on lower investment threshold of Rs. 25 crore instead of Rs. 100 crore in the second PLI and also a waiver from the condition to set up a new company for the purpose of investment.
Also Read: PLI 2.0: Industry insists investment threshold should be Rs. 25 crore!
A chunk of the industry strongly feels that there should be ease in norms regarding mergers and acquisitions (M&A) under this scheme.
