Textile PLI 2.0
- May 29, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Textile PLI 2.0
Subject: Economy
Section: National Economy
The second edition of the Production linked incentive (PLI) Scheme for textile has been put up for approval of the Cabinet. The highlights are as follows:
- Outlay of Rs. 4,307 crore
- Enhanced coverage to now also include manufacture of garments, textiles and accessories of both natural and man-made fibres. (earlier only man-made fibre fabrics and apparels; and Technical textiles were covered)
- The decision has been made as only Rs. 6,000 crore out of the Rs. 10,683 crore corpuses has been used.
- Enhance larger participation in producing value added finished textiles, which requires low investment but has high employment potential.
- Proposed minimum investment and turn-over criteria to be low so as to encourage MSME participation. Minimum investment likely to be in the 15-45 crore range with 30-90 crore turnover.
- Incentives of 8-10 % are likely.
- Earlier only newly registered companies could participate. This provision is to be relaxed to allow all companies registered in India. For existing companies investment in only new machines will be considered to qualify for the capital required guidelines in addition to maintenance of separate accounts towards production under the PLI Scheme.
Various products of the Textile industry:
Fibre: Is the thread that is used to make fabric or textile. These are classified as follows:
| Natural Fibres | |
| Cellulosic Fibres | Cotton, Flax, Jute, Sisal, etc. |
| Protein Fibres | Wool, Silk, etc. |
| Mineral Fibre | Asbestos |
| Man-made Fibres | |
| Regenerated Fibres | Unmodified: Rayon, Lyocell) and Modified: Cellulose acetate and triacetate |
| Synthetic Fibres | Polyester, polyamide, polyacrylic, polyurethane |
| Refractory and Industrial fibres | Ceramic, Carbon, Glass |
Garment: It is a finished stitched clothing made out of various textiles.
Apparel: It encompasses both garments and accessories like purse, shoes etc.
Textile: It is a broader term applied to all output derived from weaving any fibre. It may be a finished or unfinished product. All fabrics are textiles.
Technical Textile: These are defined as textile materials and products used primarily for their technical performance and functional properties rather than their aesthetic or decorative characteristics. They are manufactured using natural as well as man-made fibres. Examples are diapers/sanitary pads, conveyor belts, parachutes, surgical masks etc.