The government has placed a condition on the scheme of 10,638 crores to the textile sector, only these companies will get the benefit
Recently the Modi government affected by covid-19 lockdown happened A PLI Scheme for the Textile Sector That is, a scheme of incentives was announced in the area related to production. The latest information is that the government has put a condition in front of the companies of the sector to take advantage under this scheme. According to the notification of the Ministry of Textiles, only manufacturing companies registered in India will be eligible to participate under the recently approved Rs 10,683 crore Product Linked Incentive (PLI) scheme for the textile sector.
Notifying the scheme, the ministry also said that the participating companies will have to carry out the processing and operation activities in their factory premises. It said that while considering the claims for obtaining incentives, the business related to trading and work done through outsources would not be taken into account.
Only goods manufactured by a company registered under the scheme will be eligible for incentives, and goods manufactured by other manufacturers or other companies of the same trade group will not be included in the calculation of incremental turnover. “Only manufacturing companies registered in India will be eligible to participate under this scheme,” the notification said.
The incentive under the scheme will be available for five years during 2025-26 to 2029-30 on incremental turnover received between 2024-25 to 2028-29. For this, a provision of Rs 10,683 crore has been made in the budget. However, if a company achieves the investment and performance targets one year in advance, it will become eligible for the PLI scheme one year in advance from 2024-25 to 2028-29.
In this scheme, it is proposed to promote 10 segments of MMF (Man-Made Fibre) Apparel, MMF Fabric and Technical Textile products. Further, only one company of a group would be allowed to be registered for PLI for Textiles and no other group company would be eligible to participate in the scheme as another participant.
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(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)