The Union Ministry of Textiles announced on Friday that it will reopen the PLI scheme for the textiles sector. In a statement, the ministry said that in view of requests from industry stakeholders, it has decided to reopen the PLI scheme portal for inviting fresh applications from interested companies for MMF apparel, MMF fabrics, and products of technical textiles. The application portal will remain open until August 31 this year.
The announcement comes at a time when the US has imposed 50 per cent tariffs on Indian imports. Labour-intensive sectors such as textiles are expected to be among the worst hit.
According to the ministry’s statement, all terms and conditions notified earlier through the respective scheme guidelines will continue to apply for the fresh applications. The ministry urged all interested companies to take advantage of this opportunity and submit their applications within the specified period.
The Centre approved the PLI scheme for textiles in September 2021, with a budgetary outlay of ₹10,683 crore (~$1,220 million) for a five-year period to boost the production of man-made fibre (MMF) apparel and fabrics, among other segments.
So far, the government has approved 80 applicants under the scheme. In the current fiscal, it aims to disburse ₹500 crore (~$57.09 million) as incentives under the PLI scheme. The response to the scheme has been lukewarm, with only 64 companies committing investments of ₹6,000 crore (~$685 million). However, several investors did not proceed due to various issues.
ALCHEMPro News Desk (KUL)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
