India revives PLI scheme for textiles after initial setbacks

19 Jul '23

2 min read

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After a lack of investment following the initial introduction of Production Linked Incentive scheme for textiles, the Indian government has reopened the scheme, allowing for new applications.
Despite 64 approved investments, no new plants were established, and several companies withdrew applications.
The PLI portal will remain open until August 31, 2023.

Following the failure of the Production Linked Incentive (PLI) scheme for textiles, specifically for man-made fibre (MMF) apparel, MMF fabrics, and technical textiles products to attract investment, the Indian government has reopened the scheme, inviting fresh applications.

Earlier, the government approved 64 out of 67 applications for investment under the ₹100 crore and ₹300 crore categories. However, no plant has been set up even after two years. Many applications were withdrawn by the eligible companies.

The ministry of textiles has decided to reopen the PLI Portal until August 31, 2023, to invite applications from interested companies under the PLI scheme for MMF apparel, MMF fabrics, and products of technical textiles. A government press release stated that this decision was made in response to requests received from industry stakeholders.

All the terms and conditions previously announced via notifications and guidelines will remain applicable. Industry organisations had suggested relaxing the stringent conditions under the PLI scheme. However, the government declined to provide any relaxation during the review meeting held in the last week of June.

The government has not indicated whether it has relaxed conditions for investment under the scheme. A Gazette Notification for the scheme was previously issued on September 24, 2021. Two additional amendment notifications have been issued this year.

Fibre2Fashion News Desk (KUL)

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