Telangana Wants Cotton Inclusion In PLI Scheme

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Telangana Minister of Municipal Administration and Urban Development, KT Rama Rao, while welcoming the PLI Scheme for Textiles, has requested the Union Textiles Minister Piyush Goyal to include the cotton segment, to widen the scope of the scheme.

In a letter to Goyal, Rao wrote, “As per the guidelines announced by the government, the incentives are available only for textile units operating in man-made fibre (MMF) segment, and unfortunately, cotton is not covered. As you are aware, more than 50% of the consumption of textile products in India is with cotton as the base fibre, and therefore it provides linkages right upto the cotton farmers. In this respect, I request you to consider allowing these or similar incentives for textiles of all fibres. Our cotton textiles segment also needs support and having PLI or an equivalent scheme for it will enable the industry to invest in new projects, including the processing segment, which is in need of upgradation.”

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The request comes at a time when the industry needs to strengthen its MMF capabilities to compete in the global market, and there is need to reduce the burden on land under cotton, which can be used for food crops.

In his letter, he further stated, “At this stage, keeping the cotton segment at par with MMF is also essential, as the industry is gradually recovering from the impact of the Covid-19 pandemic and many leading players are reportedly considering new investments. Having PLI or equivalent scheme for the cotton segment will speed up the investments and help the central government in achieving its goal of 7.5 lakh employment even faster. For large number of cotton farmers, particularly from the cotton-growing states like Telangana, support through such a scheme will give them better returns and help them in their livelihoods.”

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The Telangana minister also requested Goyal to speeden the implementation of the Mega Investment Textiles Parks (MITRA) scheme.

“As the government has rightly announced MITRA Scheme, I earnestly request you to implement it right away as it will complement the PLI scheme perfectly. Large investments require large land parcels, supported by quality infrastructure and linkages, and these can be provided by mega textile parks. Therefore, announcing of the mega textile park scheme will encourage states and other developers to immediately launch their projects so that the industry can set up their manufacturing units in a short time,” read the letter.

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He added, “We have made significant progress in our mega textile park at Warangal and created strong conditions for investment with Youngone Corporation of Korea and Kitex Garments, committing investments in the mega textile park.”

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