Lok Sabha Question No. 2524 (UNSTARRED), answered on 2023-03-15
Subject: Production Linked Incentive Scheme
Ministry: TEXTILES
Asked by: Hemant Tukaram Godse

## PRODUCTION LINKED INCENTIVE SCHEME

## 2524. SHRI HEMANT TUKARAM GODSE:

Will the Minister of TEXTILES वस्त्र मंत्री be pleased to state :

(a) whether the Government has approved a Production Linked Incentive Scheme for textile sector, if so, the details thereof;

(b) whether any special incentives are being planned for the handloom sector;

(c) if so, the details thereof, if not, the reasons therefor;

(d) whether the handloom sector is only provided incentives to boost exports;

(e) if so, the details thereof;

(f)  whether  it  is  a  fact  that  no  incentives  are  designed  to  promote  production  for  domestic  and  local markets, if so, the reasons therefor; and

(g) the steps to be taken by the Government to promote the diversity in local handloom and handicraft instead of forcing standardization for exports?

## उत्तर

## ANSWER THE MINISTER OF STATE FOR TEXTILES

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् ) (SMT. DARSHANA JARDOSH)

(a): Government  has  approved  the  Production  Linked  Incentive  (PLI)  Scheme  with  an  approved outlay  of  Rs.  10,683  crore  over  a  five  year  period  to  promote  production  of  MMF  Apparel,  MMF Fabrics and Products of Technical Textiles in the country to enable Textiles industry to achieve size and scale and to become competitive.

(b) to (e): Financial assistance is  provided for organization of  events in domestic market and for participation  in  international  fairs/exhibitions,  Buyer  Seller  Meet  (BSM),  Reverse  Buyer  Seller  Meet (RBSM)  etc.,  for  export  promotion  of  handloom  products.  Under  the  Marketing  Incentive  (MI) component of National Handloom Development Programme (NHDP), financial assistance is provided to create opportunities for marketing of handloom products. The concept envisions handloom agencies to be able to adjust their prices towards increasing cost competitiveness of the products improve designs and  invest  in  infrastructure  so  as  to  improve  the  production  and  productivity.  These  incentives  are calculated @ 10% on average sales of handloom products of the last 3 years which is equally shared between State Govt. and Central Govt., except in the case of National Level Handloom Organizations/Societies, where the entire assistance shall be borne by the Government of India.

(f): To  promote  production  for  domestic  and  local  markets,  Government  is  implementing  the following schemes for development of handlooms and welfare of weavers across the country:

1. National Handloom Development Programme;
2. Raw Material Supply Scheme;

Under the above schemes, financial assistance is provided to the eligible handloom  agencies/weavers for raw materials, common  infrastructure development, marketing of handloom products in domestic/overseas markets, loans on concessional rates etc.

(g): To promote the diversity in local handloom, 16 Design Resource Centres (DRCs) have been set up  across  the  country  to  build  and  create  design  oriented  excellence  in  the  Handloom  Sector.  Also, 'India  Handloom  Brand'  has  been  launched  for  branding  of  high  quality  handloom  products.  It promotes production of niche products with high quality, authentic traditional designs with zero defect and zero effect on environment.

Further, to promote diversity in handicraft products, different kinds of marketing platforms are provided to artisans for direct sale of their products as well as awareness for marketing, micro finance, packaging, entrepreneurship among the artisans/ new comers through Craft Awareness Program, Craft Demonstration  program  etc.  under  Market  Support  &  Services  component  of  National  Handicraft Development Programme (NHDP) scheme.

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