Sarkari Yojana
Production Linked Incentive (PLI) Scheme for Textiles Part 2
About Production Linked Incentive (PLI) Scheme for Textiles Part 2
Launched by the Ministry of Textiles, Government of India, the “Production Linked Incentive (PLI) Scheme for Textiles Part-2” works to scale up production of MMF Apparel, MMF Fabrics, and Technical Textiles, sharpening global competitiveness and creating jobs. Companies investing in manufacturing notified textile products receive financial incentives tied to incremental turnover, spread across two components — Part-1 and Part-2 — with the Ministry of Textiles running the scheme through 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.
- Building global competitiveness and creating employment opportunities.
- Supporting the creation of viable, competitive textile enterprises.
Scheme Overview
Central Government
Ministry Of Textiles
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Production Linked Incentive (PLI) Scheme for Textiles Part 2, applicants must satisfy the following conditions:
Applicants must set up a new company under…
Applicants must set up a new company under the Companies Act, 2013.
Applicants must invest at least ₹100 crore, not…
Applicants must invest at least ₹100 crore, not counting land and administrative buildings.
Applicants must reach a minimum turnover of ₹200…
Applicants must reach a minimum turnover of ₹200 crore in the first performance year.
Applicants must be a company/firm/LLP/trust incorporated in India
Applicants must be a company/firm/LLP/trust incorporated in India.
Applicants must manufacture only the notified products
Applicants must manufacture only the notified products.
Applicants must maintain the minimum required value addition…
Applicants must maintain the minimum required value addition (60%, or 30% for processing).
Applicants must hold PAN, GST, and DIN
Applicants must hold PAN, GST, and DIN. Preference / Priority: Preference goes by investment, employment, technical capacity, and location, with aspirational districts and Category C cities getting higher priority.
Benefits Provided
Production Linked Incentive (PLI) Scheme for Textiles Part 2 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-2
Year 1: 11% on ₹200 crore turnover
Year 2: 10% on ₹250 crore
Year 3: 9% on ₹312.5 crore
Year 4: 8% on ₹390.63 crore
Year 5: 7% on ₹488.2 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:
The prescribed Application Form
The prescribed Application Form.
An Undertaking, duly signed and notarised
An Undertaking, duly signed and notarised.
An Auditor's Certificate
An Auditor's Certificate.
A Chartered Engineer Certificate
A Chartered Engineer Certificate.
Audited Financial Statements
Audited Financial Statements.
GST Invoices
GST Invoices.
Quarterly Review Reports (QRRs)
Quarterly Review Reports (QRRs).
A Consumption and Inventory Register
A Consumption and Inventory Register.
Proof of Investment made
Proof of Investment made.
Documents relating to Company Incorporation
Documents relating to Company Incorporation.
Details of PAN, GST, and DIN
Details of PAN, GST, and DIN.
How to Apply
Online Application
Applicants can apply for Production Linked Incentive (PLI) Scheme for Textiles Part 2 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.