: Operational guidelines of PLI scheme for Textiles released; Online applications from 1 Jan 2022 #FinanceIndia #StockMarketNEWS Operational guidelines of PLI scheme for Textiles released; Online applications

@StockMarketNEWS Fri 31 Dec, 2021

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Operational guidelines of PLI scheme for Textiles released; Online applications from 1 Jan 2022 #FinanceIndia #StockMarketNEWS
Operational guidelines of PLI scheme for Textiles released; Online applications from 1 Jan 2022 New Delhi, 29 Dec (KNN) The Ministry of Textile has announced the operational guidelines for the Production Linked Incentive (PLI) Scheme for Textile industry which will be in action from 24th September, 2021 to 31st March, 2030.

The Central government had approved the scheme with an expenditure of INR 10683 crore over a five year period, to promote production of MMF Apparel, MMF Fabrics and Products of Technical Textiles in the country.
The detailed finalised Operational Guidelines can be accessed through this link: texmin. nic. in/services/operational-guidelines-production-linked-incentive-pli-scheme-textiles-promoting-mmf-and

The part one of the scheme states that any person including Company/Firm/LLP/Trust willing to create a separate manufacturing company under Companies Act 2013, and invest minimum INR 300 crore (excluding land and administrative building cost) to manufacture Notified Products. Such company will be eligible to get incentive when they achieve a minimum of INR 600 crore turnover by manufacturing and selling the Notified products cost by the first Performance Year.

In its second part it says that any person including Company/Firm/LLP/Trust willing to create separate manufacturing company under Companies Act 2013, and invest minimum 100 crore (excluding land and administrative building cost) to manufacture Notified Products. Such company will be eligible to get incentive when they achieve a minimum of INR 200 crore turnover by manufacturing and selling the Notified products cost by the first Performance Year.

Further, the Participant shall be eligible for the incentives on achieving threshold investment and threshold/incremental turnover, said the published guidelines.

Incentive shall be calculated on achieving threshold turnover as mentioned above under the respective scheme in the first Performance Year. In case the prescribed conditions are not met in time, the incentive will be available from the year these are met, for a lesser number of years but rate of incentive applicable will be as prescribed to first year of the scheme and so on for remaining period.

The guidelines also state that, Manufacture and sale of textile Products will be considered as permitted activities. However, turnover /sale of only Notified Products shall be considered for computation and availing incentive under the scheme. Account for both Notified and non-Notified Products will be maintained separately.

Moreover, the online application under the PLI Scheme for textiles coming into effect from 1st January, 2022 will be accepted by the Ministry of Textiles through PLI portal pli.