Textile PLI Scheme May Be Extended By Four Years, Eligibility Norms Likely To Ease

(MENAFN- KNN India) New Delhi, Oct 28 (KNN) The government is likely to extend the Production Linked Incentive (PLI) scheme for textiles by around four years and ease eligibility criteria to encourage greater participation by micro, small and medium enterprises (MSMEs).

The proposed extension would mark the fourth round of the scheme, which is currently operational until 2029-30. Applicants who were not selected in the previous rounds are also likely to get another opportunity to qualify for incentives.

The proposed changes aim to make the scheme more industry-friendly and improve its overall effectiveness by lowering minimum investment and turnover thresholds, reported The Economic Times.

Scheme Approved With Rs 10,683 Crore Outlay

Approved in September 2021 with an outlay of Rs 10,683 crore, the textile PLI scheme seeks to boost large-scale manufacturing of man-made fibre (MMF) apparel, MMF fabrics and technical textiles, helping India strengthen its competitiveness in global textile value chains.

The scheme provides for a two-year gestation period in FY2023-24, followed by five performance years from FY2024-25 to FY2028-29. It remains operational until FY2029-30.

170 Applicants Approved In Three Rounds

The government has approved 170 applicants across the first three rounds of the scheme. The proposed fourth round is expected to provide another opportunity for companies that were unable to secure approval earlier.

Of the approved applicants, 46 are from Gujarat, followed by 27 from Maharashtra and 23 from Madhya Pradesh.

Investments Exceed Original Projection

The approved applicants have collectively committed investments of around Rs 41,500 crore, more than double the original Cabinet projection of Rs 19,000 crore.

By easing eligibility requirements and expanding access for MSMEs, the government aims to widen industry participation and strengthen the scheme's contribution to domestic textile manufacturing.

(KNN Bureau)

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