Ease of Doing Business for MSMEs: A new 2.0 version of the government’s production-linked incentive scheme (PLI) for textile sector, focusing on small and medium enterprises (SMEs) is expected to be finalised early next year, said an ET report citing officials on Thursday. The scheme for garments, madeups and home textiles with investments between Rs 15 crore and Rs 45 crore is currently being discussed. This would be lower than the investment limits of Rs 100 crore and Rs 300 crore for the two parts of the existing PLI scheme for textiles.
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“We encouraged capital and machinery in the first edition of PLI but this time, we are looking at small and medium entities,” the report said citing an official. The official also noted that 32 companies have started investments worth Rs 1,500-1,700 crore under the first scheme.
In November this year, the commerce minister Piyush Goyal had also said while interacting with the beneficiaries of the PLI textile scheme that the centre was looking at PLI 2.0 and had instructed officials of the ministry to undertake extensive and exhaustive stakeholder consultations before finalizing the contours of PLI 2.0
Under the existing PLI textile scheme, 67 applicants had applied out of which 64 were selected. The proposed investment during the entire tenure of the scheme is Rs 19,789 crore out of which Rs 1,536 Cr. has been invested so far, according to a statement by the textiles ministry last month.
The second version of the scheme, which may cover bedspreads and textile accessories like lace, button, and zippers, is being contemplated as the textile ministry is left with Rs 4,000 crore of unutiised budget, according to the news report.
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Government currently implements multiple policies for promotion and development of textile sector such as National Handloom Development Programme, Raw Material Supply Scheme, National Handicraft Development Programme, Silk Samagra, Integrated Wool Development Programme and SAMARTH-Scheme for Capacity Building in Textile Sector etc.