The local media in India reported not long ago that the Ministry of Textiles is planning to obtain 106.83 billion with 60% of the added value of clothing manufacturing, spinning, man-made fibers, etc.; the textile processing sector will use 30% as the added value. Review criteria for the Production Linkage Initiative (PLI) textile products scheme of Rs. The PLI plan for man-made fibers and functional textiles has just been approved by the cabinet, but the implementation details are still being consulted by the Ministry of Textiles and inter-ministerial committees. It is reported that value-added standards have been included in the plan, and PLI beneficiaries will be prohibited from outsourcing or subcontracting OEM models to ensure the improvement of local manufacturing and create job opportunities.
In terms of textile processing, the added value is expected to remain at 30%, especially where the processing volume is large (the speed at which the company produces and sells its products) and the added value is low. One downstream textile processing factory can supply the needs of thousands of garment factories; although the quantity is large, the profit is very low, so the threshold for added value is lowered. However, in terms of weaving, spinning or garment making, 60% added value is feasible, because some added values can reach 100%. However, in mass production, the added value may not reach the standard, so the Ministry of Textile considers fixing it at 60% .
According to the cabinet announcement, the qualifications for PLI are divided into two investment types as follows:
Any one A person or company can invest at least Rs 300 crore in plant, machinery, equipment and civil works (excluding land and administrative building costs) and produce man-made fiber cloth, ready-made garments and technical textile products.
Any individual or company willing to invest at least 1 billion rupees is eligible to apply, and those who choose to set up factories in third- or fourth-tier cities will be given priority for evaluation and subsidies. , is expected to benefit and promote development in the states of Gujarat, UP, Maharashtra, Tamil Nadu, Punjab, Andhra Pradesh and Telangana.
