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06 December 2021, Mumbai:
Under the production linked incentive (PLI) plan, the Ministry of Textile (MoT) is considering giving investors some flexibility. The man-made fiber (MMF) and technical textiles sectors would get Rs. 10,683 crore from PLI.
The program includes 40 MMF clothes, 14 MMF fabric products, and ten technological textiles. This government action will assist the industry in meeting the rigorous deadlines for obtaining the required minimum yearly turnover.
According to insiders, the goal is to guarantee that the industry does not miss out on incentives owing to legitimate issues they may have in their business operations.
According to a report in The Hindu Business Line, a leading business daily, the Ministry of Transportation is opposed to expanding the list of products eligible for benefits, as suggested by the industry, because the list was finalized after extensive consultations and would require another Cabinet approval if changed.
According to reports, the Ministry of Transportation had another round of consultations with business and produced a final draught of the scheme's parameters, which must now be approved by the Commerce and Industry Minister before being made public. There has been an attempt to address actual issues.
Participants will not be eligible for an incentive if they do not meet the scheme's minimum net incremental turnover requirement for any given year. Participants will only be eligible for benefits in the remaining years of the five-year block if they fail to satisfy the criterion in the year they fail to meet the criteria.
"Unforeseen situations such as delays in shipments, payments, and other associated matters may lead a beneficiary to fall behind in reaching the specified incremental turnover in a given year by a couple of months."
"In such instances, there may be a justification for providing them some more time so that they don't miss out on their incentives," the person added.
The Ministry of Transport is contemplating approving the idea to provide the Empowered Group of Secretaries, led by the Cabinet Secretary, a flexible schedule for implementing the PLI plan for textiles. The Group has the authority to make any adjustments to the scheme's modalities and to resolve any real hardship concerns that may arise during implementation.
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