To ensure that big players do not corner a large part of the funds, The Ministry of Textile (MoT) is likely to impose caps on the incentive that can be claimed by a company under the production linked incentive (PLI) scheme for man-made fibre (MMF) and technical textiles.
“A cap on the maximum amount that can be claimed under the PLI scheme by a textile company is likely to be put in place so that a big player can’t take most of the amount that has been earmarked for the sector and there is a more even distribution.”
It is pertinent to mention here that the textile sector has been allocated Rs. 10,683 crore under the recently announced PLI scheme.
As far as eligibility norms are concerned, while the minimum turnover for eligibility under the scheme could be Rs. 100 crore, it need not be for the specific item for which a company wants to claim PLI.
As soon as the Union Cabinet approves the PLI scheme for the textile sector, which is in the last stages of discussion and finalisation, it will be notified by the MoT and the modules for registering interested players will be made.
It is being said that the incentive rates offered for the textiles sector are one of the highest (compared to other sectors). It is likely to be fixed at 9 per cent of turnover in the first year for companies with a turnover between Rs. 100 crore and Rs. 500 crore and 7 per cent for those above that.
