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India’s second PLI scheme offers wider incentives


The second production-linked incentive (PLI) scheme for textiles is likely to offer incentives for manufacturing garments and home textiles. These categories cover blankets, bed spreads, and textile accessories like lace, button, and zippers. Three investment thresholds, of Rs 15 crores, Rs 30 crores and Rs 45 crores, are being considered, with double turnover as the criterion for incentives that would range between 8 and 10 per cent under the Rs 4200 crore scheme.

It is also likely to add a minimum number of stitching and sewing machines as another benchmark to avail the sops. The scheme is expected to attract investment and reduce the import dependence in textile accessories. Such value addition sectors are labor-intensive that require low investment but have a high potential to create jobs. Selected companies would have to achieve the minimum turnover, which is two times the investment, in the first year and then a 20 per cent increase in turnover over the previous year. In the first edition of the PLI scheme, the minimum investment required was Rs 100 crores and Rs 300 crores while the minimum turnover required to be achieved for incentives was Rs 200 crores and Rs 600 crores respectively.


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