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 the Apparel and Home Textile Sector and urged the businesses from Tamil Nadu to make good use of the scheme.
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 5 years by the Central Government to companies/businesses that meet the eligibilities which include a minimum investment commitment ranging between Rs. 100 crore and Rs. 300 crores from them in MMF.
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.
Following that, a draft of PLI 2.0 with simplified conditions opened doors for Cotton based product manufacturers. He said 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.
Dhamodharan mentioned that the 60+ 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 besides China, and it is the right time for Indian Textile Industries to make use of the opportunities.
