Wellspun Global Brands Ltd., Arvind Ltd., Century Textiles & Industries and IndoRama Synthetics (India) Ltd. are among them, the person said. Emails sent to the companies on Wednesday seeking comments for the story remained unanswered at the time of publishing
NEW DELHI :
Businesses have already expressed interest to the government in investing around ₹10,350 crores under the production linked incentive (PLI) scheme in the textiles sector announced on Wednesday, according to a person familiar with the development.
This accounts for a bit more than half of the ₹19,000 crore investments targeted under the scheme.
Wellspun Global Brands Ltd., Arvind Ltd., Century Textiles & Industries and IndoRama Synthetics (India) Ltd. are among them, the person said. Emails sent to the companies on Wednesday seeking comments for the story remained unanswered at the time of publishing.
The investor interest to the scheme is the outcome of the initial outreach by the government prior to rolling out the scheme that covers manmade fibre apparel, manmade fibre fabrics and ten technical textile products.
The scheme offers investment opportunity under two categories—one with minimum ₹300 crore investments for large integrated textile units and the other one with ₹100 crore investments for smaller garment and technical textile units.
In the ₹300 crore category, companies have expressed investment interest amounting to ₹8,150 crores, while the remaining ₹2200 crore is in the ₹100 crore investment category. This gives an early indication that the scheme may succeed in wooing investors given that it is open to both domestic and overseas investors.
PLI schemes try to make local manufacturing attractive to businesses by incentivising incremental production over a base year. On the other hand, the government has been calibrating customs duty on various items to encourage raw material imports and discourage finished product imports so that domestic value addition becomes attractive to businesses. The Narendra Modi administration is pursuing self-reliance as an economic and strategic goal.