A draft of PLI 2.0 with simplified conditions has opened doors for cotton-based product manufacturers. Rs.4300 crore has been allotted by the Centre to be provided as incentives to companies that are approved.
Coimbatore: Indian Texpreneurs Federation (ITF) listed the various advantages that are available for textile businesses under the Production Linked Incentive Scheme (PLI) in the recently-released PLI 2.0 for Apparel and Home Textile Sector on Thursday, and urged the businesses from Tamil Nadu to make good use of the scheme, this time.
Prabhu Dhamodharan, Convener, ITF said that the first PLI scheme focused more on improving the manufacturing and export prowess of Indian industries concentrating on select Man-Made Fibres (MMF). Under the PLI 1.0 scheme, incentives will be provided for five years by the Central Government to companies and businesses that meet the eligibilities which include a minimum investment commitment ranging between Rs.100 crore and Rs.300 crore from them in MMF.
Over 60 textile companies applied to avail the scheme by meeting the conditions set by the Centre. The participation from Tamil Nadu to make use of this scheme was minuscule. Hence ITF and similar associations urged the Centre to provide a PLI Scheme that even MSMEs and cotton-based product manufacturing companies can make use of. An appeal was made during the Union Textile Minister Piyush Goyal's visit here.
Following that, a draft of PLI 2.0 with simplified conditions has opened doors for cotton-based product manufacturers also. Rs.4300 crore has been allotted by the Centre to be provided as incentives to companies that are approved.
Prabhu Dhamodharan shared that under PLI 2.0 for Textiles, the minimum investment requirement needed to get the incentives for five years has been set at Rs.15 crore, and the turnover conditions have been simplified, thus making many businesses and companies in Tamil Nadu easily meet the investment requirements. He added that close to 500 companies in Western Tamil Nadu can become eligible to apply under this scheme.
This scheme is not limited to exporters but to all the domestic companies that meet the requirements laid in the draft. The scheme is now open for all products including cotton (61,62 and 63 HS codes), and companies can choose their preferred products for manufacturing via PLI 2.0.
The companies that take the PLI scheme can also receive incentives from the State Government. Dhamodharan also mentioned that the 60 plus companies that received approval in PLI 1.0 scheme have received better visibility and their brand value has increased in the eyes of international clients. He said US customers are looking at suppliers who can contribute to their needs beside China, and it is the right time for Indian Textile Industries to make use of the opportunities.
In this regard, ITF had conducted two meetings thus far (one a week ago, and the second today) with the assistance of KPMG - a multinational professional consultancy services provider to present a working model of this scheme to 50 entrepreneurs who are interested to make investments and begin their venture under this PLI 2.0 scheme.
Together KPMG and ITF will jointly create a record consisting of the entrepreneurs' feedback about the scheme and also the changes that need to be made in this scheme so that the possibility of huge investment from Tamil Nadu can be made.
Prabhu Dhamodharan, Convener, ITF said that the first PLI scheme focused more on improving the manufacturing and export prowess of Indian industries concentrating on select Man-Made Fibres (MMF). Under the PLI 1.0 scheme, incentives will be provided for five years by the Central Government to companies and businesses that meet the eligibilities which include a minimum investment commitment ranging between Rs.100 crore and Rs.300 crore from them in MMF.
Over 60 textile companies applied to avail the scheme by meeting the conditions set by the Centre. The participation from Tamil Nadu to make use of this scheme was minuscule. Hence ITF and similar associations urged the Centre to provide a PLI Scheme that even MSMEs and cotton-based product manufacturing companies can make use of. An appeal was made during the Union Textile Minister Piyush Goyal's visit here.
Following that, a draft of PLI 2.0 with simplified conditions has opened doors for cotton-based product manufacturers also. Rs.4300 crore has been allotted by the Centre to be provided as incentives to companies that are approved.
Prabhu Dhamodharan shared that under PLI 2.0 for Textiles, the minimum investment requirement needed to get the incentives for five years has been set at Rs.15 crore, and the turnover conditions have been simplified, thus making many businesses and companies in Tamil Nadu easily meet the investment requirements. He added that close to 500 companies in Western Tamil Nadu can become eligible to apply under this scheme.
This scheme is not limited to exporters but to all the domestic companies that meet the requirements laid in the draft. The scheme is now open for all products including cotton (61,62 and 63 HS codes), and companies can choose their preferred products for manufacturing via PLI 2.0.
The companies that take the PLI scheme can also receive incentives from the State Government. Dhamodharan also mentioned that the 60 plus companies that received approval in PLI 1.0 scheme have received better visibility and their brand value has increased in the eyes of international clients. He said US customers are looking at suppliers who can contribute to their needs beside China, and it is the right time for Indian Textile Industries to make use of the opportunities.
In this regard, ITF had conducted two meetings thus far (one a week ago, and the second today) with the assistance of KPMG - a multinational professional consultancy services provider to present a working model of this scheme to 50 entrepreneurs who are interested to make investments and begin their venture under this PLI 2.0 scheme.
Together KPMG and ITF will jointly create a record consisting of the entrepreneurs' feedback about the scheme and also the changes that need to be made in this scheme so that the possibility of huge investment from Tamil Nadu can be made.