Tiruppur Exporters’ Association demands minimum Rs 10 cr investment limit under PLI 2.0

Tiruppur, Apr 13 (KNN) The Tiruppur Exporters’ Association have sought minimum Rs 10 crores as investment limit for industries that want to benefit under the second Production Linked Incentive (PLI) scheme for textiles.

In a memorandum to Trade Advisor in the Union Ministry of Textiles, 

K.M. Subramanian, president of Tiruppur Exporters’ Association, said that most of the units in Tiruppur that invested under ATUFS scheme, had invested less than Ra 2 crores. 

“Hence, under the PLI 2.0 scheme, the government should fix minimum Rs 10 crores as investment limit and triple that amount as turnover target for industries to get benefit,” he said.

Subramanian added that the Technology Upgradation Fund (TUF) scheme was one of the major factors that aided the growth of the Tiruppur garment cluster. 

Overseas buyers are particular about quality and the units need to invest in technology to meet the quality requirements of the buyers. 

“More importantly, the continuous modernisation of machinery is need of the hour to sustain in the highly competition prevailing in the global export business,” he said.

Recently, the textile secretary held a meeting with the stakeholders of PLI 2.0.

The exporting units had assumed that a new TUF scheme will be introduced when the Amended TUF scheme expired on March 31, 2022. 

TANSIA president pointed out that many units made investments based on this expectation. But, there is no announcement related to a new scheme that will support modernisation of the textile industry. 

The government should come out with a new TUF scheme at the earliest, he said.  (KNN Bureau)