Sarkari Yojana
Production Linked Incentive (PLI) Scheme for Textiles Part-1
About Production Linked Incentive (PLI) Scheme for Textiles Part-1
The Ministry of Textiles, Government of India, launched the “Production Linked Incentive (PLI) Scheme for Textiles Part-1” to scale up production of MMF Apparel, MMF Fabrics, and Technical Textiles, sharpening the sector’s global competitiveness and generating jobs. Under this scheme, companies that invest in manufacturing notified textile products earn financial incentives linked to incremental turnover, across two components — Part-1 and Part-2 — implemented by the Ministry of Textiles with support from a Project Management Agency (PMA) and oversight from the Empowered Group of Secretaries (EGoS). > Objectives:
- Promoting domestic production of MMF Apparel & Fabrics and Technical Textiles products.
- Helping the textile industry achieve size and scale.
- Becoming globally competitive and generating employment opportunities.
- Supporting the creation of a viable, competitive textile industry.
Scheme Overview
Central Government
Ministry Of Textiles
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Production Linked Incentive (PLI) Scheme for Textiles Part-1, applicants must satisfy the following conditions:
The applicant must establish a new company registered…
The applicant must establish a new company registered under the Companies Act, 2013.
The applicant must commit a minimum investment of…
The applicant must commit a minimum investment of ₹300 crore, excluding land and administrative buildings.
The applicant must generate a minimum turnover of…
The applicant must generate a minimum turnover of ₹600 crore during the first performance year.
The applicant must be incorporated in India as…
The applicant must be incorporated in India as a company/firm/LLP/trust.
The applicant must limit manufacturing to notified products…
The applicant must limit manufacturing to notified products only.
The applicant must sustain the minimum value addition…
The applicant must sustain the minimum value addition threshold (60%, or 30% in the case of processing).
The applicant must possess PAN, GST, and DIN…
The applicant must possess PAN, GST, and DIN registrations. Preference / Priority: Priority is determined by investment, employment generated, technical capacity, and location, favoring aspirational districts and Category C cities.
Benefits Provided
Production Linked Incentive (PLI) Scheme for Textiles Part-1 provides the following benefits to eligible applicants:
Financial Incentive:
Incentives go to selected participants based on incremental turnover of notified products manufactured in India.
The incentive runs for a maximum of 5 years from the first performance year.
Incentive Structure:
Scheme Part-1
Year 1: 15% on achieving ₹600 crore turnover
Year 2: 14% on ₹750 crore
Year 3: 13% on ₹937.5 crore
Year 4: 12% on ₹1171.87 crore
Year 5: 11% on ₹1464.84 crore
Conditions Linked to Benefits:
To qualify for incentives, the participant must hit the minimum threshold investment and prescribed turnover.
From Year 2 onwards, the participant must achieve 25% incremental turnover over the previous year.
Incentives get provided only when both turnover targets and incremental growth conditions are met.
Incremental turnover counted for the incentive is capped at 35% growth.
Mode of Disbursement: The incentive gets disbursed through Direct Bank Transfer to the participant's account via the Public Financial Management System (PFMS).
Frequency of Disbursement: Incentive claims get processed and disbursed on an annual basis.
Time of Disbursement: The Project Management Agency (PMA) processes claims within 45 days of submission, and disbursement follows within 15 days of approval by the competent authority.
Validity of Benefits: The scheme runs until 31 March 2030, with incentives available for 5 consecutive performance years, subject to meeting eligibility conditions.
Documents Required
Applicants should keep the following documents ready before starting the application:
Duly filled Application Form
Duly filled Application Form.
A notarised and signed Undertaking
A notarised and signed Undertaking.
Certificate issued by the Auditor
Certificate issued by the Auditor.
Certificate issued by a Chartered Engineer
Certificate issued by a Chartered Engineer.
Statements of Audited Finances
Statements of Audited Finances.
Invoices for GST
Invoices for GST.
Quarterly Review Reports (QRRs)
Quarterly Review Reports (QRRs).
Register of Consumption and Inventory
Register of Consumption and Inventory.
Documentation proving Investment
Documentation proving Investment.
Records of Company Incorporation
Records of Company Incorporation.
PAN, GST, and DIN Details
PAN, GST, and DIN Details.
How to Apply
Online Application
Applicants can apply for Production Linked Incentive (PLI) Scheme for Textiles Part-1 through the online application process outlined below.
The applicant visits the official portal
The applicant visits the official portal: http://PLI.texmin.gov.in.
The applicant fills out the online application form
The applicant fills out the online application form.
The applicant uploads documents and submits an undertaking
The applicant uploads documents and submits an undertaking.
The applicant pays the ₹50,000/- application fee online
The applicant pays the ₹50,000/- application fee online.
The applicant receives an acknowledgement along with the…
The applicant receives an acknowledgement along with the Application ID.
The Ministry/PMA may raise queries, which must be…
The Ministry/PMA may raise queries, which must be answered within the prescribed time.
The Selection Committee evaluates and selects applications
The Selection Committee evaluates and selects applications.
Selected applicants get a Letter of Approval
Selected applicants get a Letter of Approval.
The applicant begins manufacturing and works toward the…
The applicant begins manufacturing and works toward the required targets.
The participant submits annual incentive claims online
The participant submits annual incentive claims online.
Claims get verified and approved
Claims get verified and approved.
The incentive gets disbursed to the bank account
The incentive gets disbursed to the bank account.
Objectives
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Exclusions / Who Is Not Eligible
- The applicant should not be bankrupt or a defaulter.
- The applicant should not be blacklisted by any government authority.
- Turnover from trading or job work is not considered.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.
