CITI welcomes approval of the Production Linked Incentive Scheme (PLIS) for MMF Fabrics, Garments and Technical Textiles

New Delhi, Wednesday, 8th September 2021: Chairman, CITI, Shri T Rajkumar welcomed the approval of the Production Linked Incentive Scheme (PLIS) for MMF Fabrics, Garments and Technical Textiles by the Hon’ble Prime Minister, Shri Narendra Modi Ji, Chairman of the Cabinet Committee of Economic Affairs (CCEA). Shri T. Rajkumar said, the Scheme with an outlay of Rs.10,683 crores will provide a major thrust to the MMF Fabrics, Garments and Technical Textiles which are being seen as the growth engine of the next decade and will help the Textiles and Clothing (T&C) industry to achieve its short-term as well as long-term goals set by the Government of India.

CITI Chairman, also thanked the Hon’ble Finance Minister, Smt. Nirmala Sitharaman Ji and Hon’ble Union Minister of Textiles, Commerce & Industry, Consumer Affairs & Food & Public Distribution, Shri Piyush Goyal Ji for making the Scheme a reality with a total outlay of INR 1.97 Lakh Crores for 13 key sectors, including Textile & Clothing Industry, to create global champions and generate additional employment opportunities for country’s youth especially for poor and illiterate women of the rural areas.

Shri T Rajkumar cited that world over MMF Sector and Technical Textiles are considered as the driving force for the growth of any country’s textile industry and the same has also been endorsed and recognised by our Government. Hence, Government has addressed many structural issues in the MMF Sector by removing anti-dumping duty on Purified Terephthalic Acid (PTA) and Viscose Staple Fibre (VSF) and rejected the proposed anti-dumping duties on PSF, MEG, etc. which has made the MMF fibre and yarn cheaply available to the domestic players at internationally competitive prices. The Government has also allocated Rs.1,480 crores under Technology Mission on Technical Textiles for encouraging R&D activities in the sector. He further pointed out that Technical Textiles has a major role to play in the overall development of several sectors of the economy, including infrastructure, water, health and hygiene, defence, security, automobiles, aviation, etc. Thus, the inclusion of both the sectors in PLIS underlines the importance of these segments for enhancing India’s trade share in the global textile trade.

CITI Chairman pointed out that through PLI Scheme, the Hon’ble Minister of Textiles wants to scale up the capacity of the T&C Industry by ten times. Considering the growing demand for textile products in the domestic sector as well as across the globe, the PLI Scheme is expected to attract a fresh investment of over Rs.19000 crores, additional production turnover of Rs.3 lakh crore in Five Years and will create additional employment for 7.5 lakh people and would significantly expand the size of the textile sector.

Shri T Rajkumar stated that there are two types of investment possible with different sets of incentive structures, first, where a company willing to invest Rs.300 crores in Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce products of Notified lines (MMF Fabrics, Garment) and products of Technical Textiles, shall be eligible to apply for participation in the first part of the scheme. Similarly, in the second part, a company willing to invest Rs.100 crores shall be eligible to apply for participation in this part of the scheme. In addition, priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and due to this priority Industry will be incentivized to move to the backward areas. He further stated that this scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamilnadu, Punjab, AP, Telangana, Odisha, etc.

CITI Chairman stated that the PLI Scheme and other policy decisions made by the Government of India will not only improve the competitiveness of the Indian textile sector but go a long way in fulfilling the dreams of the Hon’ble Prime Minister of making our T&C Industry AatmaNirbhar in real sense and India a global manufacturing hub for the textile sector. With this, India hopes to regain its dominance in the Global Textiles Trade.