The Textiles Sector Incentive Scheme approved by the Union Cabinet for Rs 10,683 crore. On Wednesday, the Union Cabinet approved a Rs 10,683 crore textiles production-linked incentive scheme.
Companies that create more than 50 man-made fibre textiles and fabrics, as well as some technological textile items, eligible for this programme. The telecom industry’s five-year plan is part of a PLI plan for essential sectors valued at about Rs 2 lakh crore.
The Minister of Textiles, Commerce, and Industry, Piyush Goyal, planned to offer it as part of a larger package of initiatives for the industry. This included fee refunds and other incentives recently agreed by the Cabinet.
The bulk of textiles produced in India made of natural fibres. Such as cotton, although man-made fibres produced throughout the world account for the majority. The goal is to increase India’s share of this market. Presently it is less than 3%, according to Textiles Secretary Upendra Prasad Singh.
Entities that invest more than Rs 300 crore in the plant, machinery, equipment, and civil works for the production of chosen commodities eligible for a 15% bonus based on turnover. It will require Rs 600 crore in the third year. It will decrease by one percentage point each year until it is phased out after the fifth year. But only if incremental turnover is achieved. There is another option for people who want to invest.
The programme, according to Goyal, will give priority to institutions that open stores in underserved areas and create more jobs. The Ministry of Textiles intends to announce the scheme in the coming days. As well as the guidelines, by the end of the month. According to Singh, companies should be able to apply in November and December.
Over the next five years, the government expects fresh investments of Rs 19,000 crore, resulting in a total turnover of Rs 3 lakh crore and additional employment opportunities for roughly 7.5 lakh people.
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