Government begins industry talks for second edition of PLI scheme for textiles
The government has begun talks with industry players and could launch a second edition of its production-linked incentive scheme for the textiles industry to help boost manufacturing.
As talks begin for how to tailor the PLI scheme for a potential second round, industry players are making their requests for how to ameliorate the project. “This was the preliminary round of consultations and it is an evolving situation,” an anonymous official told ET Bureau. “Many ideas will come in and we will consider them.”
Some of the feedback from the textile industry on how to improve a potential PLI scheme 2.0 includes lowering the investment and turnover thresholds to make the scheme accessible for more businesses. The scheme currently covers manmade fibre and technical textiles and industry voices are calling for the inclusion of knitted fabrics in the scheme as well as more products including home textiles and made-ups.
One of the reasons that the government is considering launching a second PLI scheme is that its Textiles Ministry has an unused budget of around Rs 4,000 crore following its round of approvals for phase one of the scheme in April. The ministry approved 64 PLI scheme applications with an investment potential of Rs 19,798 crore and a projected turnover of Rs 1.93 lakh crore in the coming five years.
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