The government plans to launch the second edition of production-linked incentive (PLI) scheme for textiles and has begun consultations with the industry.
PLI 2.0 for the textile sector is being considered as the ministry has an unutilized budget of about Rs 4,000 crore after it approved 64 applications with an investment potential of Rs 19,798 crore and projected turnover of Rs 1.93 lakh crore in the next five yeaRs under the fiRs t phase of the scheme last month.
Industry has demanded inclusion of knitted fabrics in the scheme, besides manmade fibre and technical textiles and a lower investment threshold of Rs 25 crore instead Rs 100 crore now. It also does not want the government to impose any condition to set up a new company for the purpose of investment.
One of the key demands of the industry is a lower investment threshold. In part-1 of the PLI schemes, the minimum investment required is Rs 300 crore and the minimum turnover required to be achieved for incentive is Rs 600 crore. In part-2, the industry has sought minimum investment threshold of Rs 100 crore and the minimum turnover ofRs 200 crore.