The authorities are probably going to replace its flagship incentive scheme for capital investments in textiles and clothes – Amended Technology Upgradation Fund Scheme (ATUFS) – with one comparable to the production-linked incentive (PLI), to promote home improvement and manufacturing of textile equipment.
The threshold for textile manufacturing models to be eligible for sops below the proposed scheme could be funding in plant and equipment of ₹1 crore to ₹50 crore for MSMEs and above ₹50 crore for non-MSMEs. Incentives could be supplied primarily based on the turnover achieved after making the threshold funding in modernisation by way of set up of benchmarked expertise.
Incentives of up to 60% primarily based on the funding and turnover standards could possibly be doled out throughout weaving, knitting and spinning, amongst different textile segments.
Officials stated that weak hyperlinks in the textile worth chain are being recognized and an announcement is probably going in the upcoming Budget 2023-24. “The ATUFS is being reviewed and a new scheme could be announced soon,” stated an official.
ATUFS was notified in January 2016 with an outlay of ₹17,822 crore to mobilise new investments of about ₹95,000 crore. It has helped create employment for about 3.5 million until 2022. The scheme expired on March 31, 2022.
The authorities had carried out a ‘expertise hole evaluation’ and recognized 60 important elements utilized in the textile business which aren’t indigenously manufactured and which it goals to make in India.
Under the proposed scheme, turnover achieved from job work in choose segments could be accounted for whereas calculating incentives and solely the merchandise manufactured by the registered firm could be eligible.
The authorities had final yr permitted the ₹10,683-crore PLI scheme for artifical fibre (MMF) attire, MMF materials and merchandise of technical textiles.
The second version of the PLI for textiles is underway whereby incentives are doubtless for manufacturing of clothes and residential textiles corresponding to blankets and mattress spreads, and textile equipment like lace, button, and zippers.
Post time: Nov-30-2022