Monte Carlo, Arvind, 59 others get textile PLI nod

The proposed total investment expected from the applicants is ₹19,077 crore

NEW DELHI: Monte Carlo Fashions Ltd, Arvind Ltd, Trident Ltd and Kimberly Clark India Pvt. Ltd are among 61 Indian textiles companies that have qualified for the government’s ambitious production-linked incentive (PLI) scheme for the sector.

“The proposed total investment expected from the applicants is ₹19,077 crore, and a projected turnover is ₹184,917 crore over five years with proposed direct employment of 240,134,” Union textiles secretary UP Singh told reporters. A total of 67 companies had applied for the incentives scheme. Thirteen applications were approved under Part 1 of the scheme, where the minimum investment is ₹300 crore, and the minimum revenue required to be achieved for the incentive is ₹600 crore. These include Avgol India, Trident Ltd, Shahi Exports, and Madura Industrial Textiles Ltd.

The remaining 48 were approved under Part 2 of the scheme, where the minimum investment is ₹100 crore, and the minimum revenue required to be achieved for the incentive is ₹200 crore. These include Texport Industries Ltd, Swara Baby Products, Arvind Ltd, and Techno Sportswear.

In December, the government approved the PLI scheme for textiles, offering incentives worth ₹10,683 crore over five years to manufacture manmade fibre apparel—jerseys, overcoats, trousers, etc.—fabrics and products of technical textiles. The scheme aims to expand man-made fibre and technical textiles segments’ value chain to help India regain its dominant status in the global textiles trade. India’s share of global textile exports has declined over the last few years.

The scheme will be operational from September 24, 2021 to March 31, 2030. Man-made fibre constitutes over 70% of the global textile market and is expected to see its share grow to 80% in the next few years.

India is primarily a cottondominated market as it is the largest producer of the natural fibre. “India needs to play a much larger role in the international market. The scheme would help increase India’s share in the global man-made fibre and technical textiles sector. We are targeting to increase exports of technical textiles from $2 billion to about $8-10 billion,” he added.

Addressing the issue of soaring raw cotton prices, Singh said cotton prices may cool in the coming days after the finance ministry’s Wednesday decision to fully exempt the import of cotton from customs duty till September 30.

“After the duty exemption announced Wednesday, cotton prices are expected to fall in two to three days. But at the same time, we don’t expect the prices to go very low because there is a shortage all over. Crops have got affected in the US and other countries due to drought-like conditions,” Singh said.

The import of cotton attracted a 5% basic customs duty and a 5% agriculture infrastructure development cess. Cotton prices doubled to ₹90,000 a candy, which weighs 356 kg, in just a year, hurting textile makers across the country. “Rising cotton prices have two aspects to it. When cotton prices rise, farmers stand to benefit. Farmers are now getting nearly two times the minimum support price, so this year, we are expecting cotton acreage to increase by 10-20% as the farmers are getting good prices for their produce,” Singh said.

HT A total of 67 firms had applied for the PLI scheme, of which 13 applications were approved under Part 1 and 48 under Part 2.