Saturday, Apr 20 2024 | Time 19:29 Hrs(IST)
image
Business EconomyPosted at: Sep 12 2021 3:44PM


Shahi Exports, Orient Craft among textile majors interested in Rs 10,683 crore PLI scheme, applications expected in November

By Nirbhay Kumar

New Delhi, Sep 12 (UNI) Shahi Exports, Pallavaa Group and Orient Craft are among the leading textile players which have shown interest in participating in Rs 10,683 crore production linked incentive (PLI) scheme for textiles for MMF (man-made fibre) apparel, MMF fabrics and 10 other segments of technical textiles, senior Textiles Ministry official told UNI.

Vijoy Kumar Singh, Additional Secretary in Textiles Ministry, said that there are 1,356 textile companies in the country with annual exports of over Rs 100 crore and many of them would be keen to take benefit of the incentive scheme.

In an interview with UNI, Singh allayed the fear that only large corporates would benefit from the scheme given the fact that textile industry is dominated by micro and small players.

"In textile industry there are 1,356 companies whose (annual) exports are over Rs 100 crore. This means their production would be more. They may not be exporting entirely. There are about 35,000 textile companies in the country which are taking benefits of the government schemes (for the sector)," he said.

"Shahi Exports, Orient Craft, members of AEPC (Apparel Export Promotion Council) have shown interest. Pallavaa Group from Tamil Nadu) is also keen. There would be medium and small companies which would be interested in participating in the scheme," said the Additional secretary.

Discussing the details of the newly-launched scheme, Singh said that it is a very time-bound scheme in which eligible participants would get two years time to set up factory and then one year for production.

"From the fourth year, the eligible players will start getting incentives," he said.

Explaining the PLI scheme, Singh said that any firm investing Rs 300 crore needs to achieve a turnover of Rs 600 crore in third year. Further, if he meets the target he would be eligible for 15 per cent incentive (Rs 90 crore) in the first year of claiming the incentive.

"Next year, the company has to achieve 25 per cent growth to clock a turnover of Rs 750 crore. But he would be eligible for incentive on incremental turnover (Rs 150 crore) and the rate of incentive would be 14 per cent instead of 15 per cent in the previous year. As rate of incentive gets reduced every year, the benefit would be the lowest in the last year of the scheme," he said.

As per the scheme details, there would be two types of investment possible with different sets of incentive structure. Any entity willing to invest a minimum of Rs 300 crore in plant, machinery, equipment and civil works to produce products of notified lines (MMF Fabrics, Garment) and products of technical textiles, shall be eligible to apply for participation in the first part of the scheme.

In the other category, entities willing to invest a minimum of Rs 100 crore shall be eligible to apply for participation.

In addition, priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and due to this priority industry will be incentivised to move to backward area.

"In a month's time we will make detailed guidelines. Bigger contours have been approved by the government. Once detailed guidelines are there, we will invite applications. From November we expect applications to start coming. We have limited resources so it's not possible that everybody applying will get the benefit. Suppose, we have the funds for X number of companies and 2X applications come then we will rank them," said the Textile Ministry official.

"The companies investing in aspirational districts, tier-3, 4 towns or rural areas will get priority. Those making bigger investment will have advantage. Those who provide more employment will get a little more advantage. Those putting up integrated factory will get more score," he added.

The Ministry has decided to disallow non-GST and non-banking channel sales in calculating the annual turnover. So, no one can claim cash sales arguing that sales happened through a shop without generating bill.

"Nobody would be allowed to game the system," Singh emphasized.

UNI NK SHK1544
Please log in to get detailed story.
Tags: #Shahi Exports# Orient Craft among textile majors interested in Rs 10#683 crore PLI scheme# applications expected in November
More News
HDFC Bank net up 37% in Q4; company recommends dividend of Rs 19 50 per share

HDFC Bank net up 37% in Q4; company recommends dividend of Rs 19 50 per share

20 Apr 2024 | 5:36 PM

New Delhi, Apr 20 (UNI) India’s largest private sector bank HDFC Bank on Saturday announced a jump of 37.1 per cent in net profit at Rs 16,511.85 crore for fourth quarter (January-March) of FY2023-24.

see more..

Kottayam-Kochi Rubber Market Rates

20 Apr 2024 | 4:46 PM

Kottayam, Apr 20 (UNI) Following were the Rubber Market rates announced by the Rubber Board here on Saturday per quintal.

see more..
ICICI Bank strengthens support for senior citizens in Bengal

ICICI Bank strengthens support for senior citizens in Bengal

20 Apr 2024 | 1:29 PM

Kolkata, April 20 (UNI) The ICICI Bank has announced a range of initiatives to make banking more convenient to its senior citizen customers in West Bengal.

see more..

IREDA nets all-time high at Rs 1,252 23 cr in FY24

19 Apr 2024 | 8:38 PM

New Delhi, April 19 (UNI) Indian Renewable Energy Development Agency Ltd. (IREDA), the nation's largest pure-play green financing NBFC, Friday announced an all-time high net profit of Rs. 1,252.23 crore in 2023-24, a 44.83 per cent jump over the previous fiscal year 2022-23.

see more..

"CSIR-IICT and BHEL partners to advance clean fuel technology: MoU signed on CO2 to DME"

19 Apr 2024 | 7:23 PM

Hyderabad, April 19 (UNI) The Council of Scientific and Industrial Research-Indian Institute of Chemical Technology (CSIR-IICT) and Bharat Heavy Electricals Limited (BHEL) Corporate R&D have forged a partnership to develop technology for capturing and converting carbon dioxide (CO2) to Dimethyl Ether (DME) through direct catalytic conversion.

see more..
image