Cir(067)/2022

May 20, 2022

 

Committee

Sub: Industry Stakeholders inputs/ suggestions on the proposed Production Linked Incentive (PLI) Scheme II for the Textile and Apparel Sector – reg.

Dear Sirs/Madam, 

Greetings from Confederation of Indian Textile Industry (CITI)!

As you are aware, the Ministry of Textiles had notified Production Linked Incentive (PLI) Scheme with a total outlay of Rs.10,683 crores on 24^th September 2021 for MMF Fabrics, MMF Garments and products of Technical Textiles. The tenure of the Scheme is for 5 years starting from 2024-25 to 2028-29. Under the Scheme FY: 2022-23 to FY: 2023-24 will be the gestation period for Part-1 and Part-2.

Highlights of Production-Linked Incentive (PLI) Scheme for the Textile Sector:

 1.The PLI Scheme:

Scheme Part- 1: Any person including Company/Firm/LLP/Trust willing to create a separate manufacturing company under Companies Act 2013 and invest minimum 300 Crore (excluding ₹ land and administrative building cost) to manufacture Notified Products. Such company will be eligible to get incentive when they achieve a minimum of 600 Crore turnover by manufacturing and selling the Notified products ₹ by the first Performance Year.

Scheme Part- 2: Any person including Company/Firm/LLP/Trust willing to create separate manufacturing company under Companies Act 2013 and invest minimum ₹100 Crore (excluding land and administrative building cost) to manufacture Notified Products. Such company will be eligible to get incentive when they achieve a minimum of 200 Crore turnover by manufacturing and selling the Notified products ₹ by the first Performance Year.

                              Prescribed Turnover and Rate of Incentive Chart

 

2. Products covered under PLI Scheme: The details of HS Lines of MMF Fabrics, and MMF Garments along with their export performances are attached at Annex-1. The HS Lines of Technical Textiles are attached at Appendix-IC along with the Operational Guidelines of PLI Scheme for your reference.

 

3. Requirement of formation of new company under PLI-1: The Ministry of Textiles vide Amendment Notification No.12015/03/2020-IT dated 24.09.2021 has amended the provision of forming a new company and investment made thereto prior to 24^th September 2021. The new amendment says “A Company though registered prior to date of Notification i.e. 24^th September 2021 but has not started production will be treated as a new company for the purpose of benefits under this scheme. However, the investment made prior to date of Notification i.e. 24^th September 2021 will not be counted for eligible investment.”

 

Suggestion for Proposed Production-Linked Incentive (PLI) Scheme II for the Textile and Apparel Sector:

The Ministry of Textiles has invited suggestions from the stakeholders for proposed Production Linked Incentive (PLI) Scheme II for the Textile and Apparel Sector. Suggestions have been invited in the following areas:

1. Lowering of investment limit from the present 100 crore (please refer to para 1 above).

Some stakeholders have requested for lowering of investment limit to Rs.10 crore. We request for your views on optimal threshold limit so that the scheme can create local global champions.

2. Inclusion of HS Lines especially for cotton apparel products (please refer to para 2 above).

In this regard, CITI has proposed for inclusion of HS Lines for Apparel as well as Made-ups products. Inputs are invited on Specific HS Codes for inclusion in PLI II. 

3. Inclusion of already registered unit however with fresh investment i.e. prior to date of Notification dated 24^th September 2021 (please refer to para 3 above)

 

Your views are invited on the above suggestions and any other feedback to make the proposed Scheme more attractive for the industry by 25^th May 2022.

CITI will hold a virtual interaction with the Committee Members and Member Associations on Thursday i.e. 26^th May 2022 to discuss the feedbacks received and CITI’s suggestions for proposed PLI (2.0). 

The time and web-link of the virtual interactive meeting on PLI II will be shared once confirmation is received from your end.

We look forward to receiving your suggestions/ inputs at the earliest.

 

Thanking you, 

Yours faithfully,

(Chandrima Chatterjee)

Secretary General