Madhya Pradesh has bagged the highest amount of investment, to the tune of Rs 3,513 crore under the production linked incentive (PLI) scheme for the textile sector, data from a recent parliamentary panel report shows.

The standing committee on labour, textiles and skill development in its report on the man-made fibres (MMF) was informed by the textile ministry earlier this year that out of 67 applicants, 64 projects with a proposed investment of Rs 19,798 crore were approved by a selection committee under the PLI scheme. While Gujarat saw the highest number of proposed projects (13), Madhya Pradesh cornered the highest amount of proposed investment (Rs 3,513 crore).

The government approved the PLI Scheme for textile products in September last year with an aim to promote MMF apparel, MMF fabrics, products of technical textiles and to enhance manufacturing capabilities and exports from the country of select MMF products with an approved outlay of Rs 10,683 crore.

“Selected companies would be eligible to get incentives on achieving threshold investment to promote size and scale, competitiveness and generate employment by overcoming constraints like lack of economies of scale, defective fabrics and non-compliance to International standards”, the committee noted.

The scheme has two parts. Under Part-1, the minimum investment required is Rs 300 crore and 15 per cent incentive will be provided on attaining required turnover in the first year. Under Part-2, the minimum investment is Rs 100 crore and 11 per cent incentive will be provided on attaining required turnover in the first year. Additionally, the incentive will be reduced by one percentage point every year from second year onwards till the fifth year under both parts of the Scheme.

Under the scheme, 14 projects with a minimum investment of Rs 300 crore were approved, with a proposed investment of Rs 10,518 crore and with a potential to generate 98,088 jobs, the textile ministry informed the committee. Also, 50 projects with a minimum investment of Rs 100 crore were approved, with a proposed investment of 9,280 crore and with a potential to generate 147,274 jobs.

Noting that technical textiles is a high technology sunrise sector, the committee called upon the ministry to intensify the efforts for the development and expansion of Technical textiles.

“The Committee would also like the Ministry to explore the feasibility of exploring PPP models and strategic market partnerships with Global players for acquiring technical know-how so as to strengthen the development of an indigenous industry towards transforming India into a global manufacturing hub for technical textiles”, noted the ministry.