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Cabinet clears PLI Scheme for Textile Sector

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    11th Sep, 2021


The Union Cabinet approved a Production-Linked Incentive (PLI) scheme for the textiles sector worth Rs 10,683 crore.

About the Scheme

  • The scheme aims to attract fresh investment of Rs 19,000 crore in the sector for production of in-demand textiles, and additional turnover of Rs 3 lakh crore over five years. 
  • The scheme is for man-made fibre (MMF) apparel, MMF fabrics and 10 segments/products of technical textiles.
    • Man-made fibers are produced by humans through chemical synthesis as opposed to natural fibers that are directly derived from living organisms.
      • MMFS such as nylon, polyester, acrylic, rayon and polyolefin dominate global apparel production.
  • This is part of a larger PLI scheme for 13 sectors, with a total budgetary outlay of 1.97 lakh crore.
  • The Centre focus will to improve production in aspirational districts or Tier-3 and Tier-4 cities.
  • Textile firms located in Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh, and Telangana, among other states are likely to benefit the most from the PLI scheme. 

What is PLI Scheme?

  • The scheme provides incentives to companies for enhancing their domestic manufacturing apart from focusing on reducing import bills and improving the cost competitiveness of local goods. 
  • PLI scheme offers incentives on incremental sales for products manufactured in India. 

Types of Investment

The scheme envisages two types of investment with different set of incentive structure. 

  • Type one: Any person, (which includes firm/company) willing to invest minimum ?300 crore in plant, machinery, and civil works (excluding land and administrative building cost) to produce the notified products will be able to participate in the scheme. 
  • Second type: Anyone willing to invest minimum ?100 crore will be eligible to participate.

Important Government Schemes: Ministry of Textile

  • Project SURE (Sustainable Resolution)
  • Scheme for Integrated Textile Park (SITP)
  • Silk Samagra Scheme for Development of Sericulture 
  • PowerTex India scheme
  • Samarth Scheme, also known as Scheme for Capacity Building in the Textile Sector (SCBTS)


Important Reports

  • In its Fifth Assessment Report (2013), the United Nations Intergovernmental Panel on Climate Change (IPCC) revealed that between 1880 and 2012, the average global temperature rose by 0.85 percent. 
    • The report also stated that a great deal of irreversible damage had already been triggered and most aspects of climate change will persist for centuries, even if emissions are controlled. 
  • A 2018 IPCC report concluded that many of the adverse impacts of climate change would come at the 1.5°C mark, including 
    • extreme temperatures in most inhabited regions
    • a rise in mean sea level
    • heavy precipitation in many areas
    • the probability of drought and precipitation deficits in some areas