The government on Thursday approved financial aid to 61 companies, including seven foreign companies, for its Textile Production Linked Incentive (PLI) scheme. The companies plan to invest Rs 19,077 crore. The first tranche of the scheme, which plans to invest at least Rs 300 crore, has 13 companies, including Shahi Exports, Paragon Apparel, and Trident. The second tranche has a minimum investment of Rs 100 crore and has 48 companies, including Arvind Ltd, Suchi Industries, and SVP Global Textiles.

Seven foreign companies, including Autoliv and Kimberly Clark of the US, Avgol of Israel, Evertop Textile & Apparel Complex of South Korea, Rane TRW Steering Systems of Germany, Teejay of Sri Lanka, and Toray International of Japan, have pledged Rs 1,904 crore. The gestation period and total investment of Rs 3,559 crore. Singh said that if India wants to achieve its textile export target of $100 billion by 2030, it must put a mark on man-made fibres (MMF). On September 8 last year, the Union Cabinet approved the plan with a budget of Rs 10,683 crore expenditure.

The program aims to promote the production and trade of man-made fibres (MMF), apparel, and technical textiles in India. Arvind Limited, primarily engaged in natural fibres, also has a technical textiles business under its Advanced Materials Division (AMD). The segment accounted for about 12% of its revenue for the nine months ended December 31, 2021. The company did not comment on its plans.

On the other hand, SVP Global Textiles Limited, engaged in compact cotton yarn manufacturing, has applied to set up a technical textile unit under the PLI scheme with a capital expenditure of Rs 100 crore. “We realised that we were only in the yarn sector and needed to be in the full textile value chain. However, instead of making ordinary clothing, we would build a technical textiles division in our existing factory, where we planned to produce protective gear, Initial mobile, and medical textiles.

The new division is expected to generate additional revenue of Rs 1.75 crore per annum, which we expect to grow by 25% year-on-year,” Maj Gen (Dr) OP Gulia, SM, VSM (retd), of SVP Global Textiles Limited CEO.