This will boost output, says V. K. Singh
Textile entrepreneurs can consider undertaking joint investments to meet the Production Linked Incentive (PLI) Scheme’s minimum investment criteria, said V. K. Singh, Additional Secretary, Ministry of Textiles, at an Indian Chamber of Commerce (ICC) meeting.
Noting that the minimum investment criterion of ₹100 crore under the PLI to make apparels and the condition that the products should have 85% manmade fibre content may be unviable for garment units, Sanjay Jain, chairman of the ICC expert committee on textiles and jute, earlier urged a reduction in the minimum investment criterion. Mr. Jain also pointed out that raising GST rates for garments priced lower than ₹1,000 to 12% from 5% would lead to higher inflation. He appealed to the Ministry to recommend to the Finance Ministry to not raise the rates, for the benefit of MSMEs.
Mr. Singh said there were requests for a reduction in the investment criteria. However, two or three industries could collaborate to invest in a company to meet the criteria and achieve higher scales of production.
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