Production Incentive (PI)

The Production Incentive (PI) forms part of the overall Clothing and Textile Competitiveness Programme (CTCP) and flows from the implementation, by the Department of Trade and Industry, of customised sector programmes (CSPs) for the clothing, textiles, footwear, leather and leather goods industries.

The main objective is to assist the textile industry in upgrading processes, products and people in order to be more competitive. It consists of an upgrade grant and a working capital facility.

What benefit is available?

The incentive benefit is limited to a maximum of 10% of the company’s MVA on 31 March 2011. MVA = Sales less Material input costs.

The grant is payable on presentation of proof of qualifying expenditure (e.g. plant acquisition), or the acceptance of liability for interest charges by the IDC.

The upgrade grant can be used for the following:

  • Upgrade equipment
  • Develop people
  • Improve the manufacturing processes
  • Optimise materials used
  • Develop new products

The grant can also be used for an interest subsidy on working capital.

This incentive will run for a period of 5 years until 31 March 2015.

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