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This scheme offers financial incentives to textile manufacturers to boost the production of MMF Apparel, MMF Fabrics, Read More... and Technical Textiles, aiming for global competitiveness and more jobs. Read less

Details

The Indian government's Ministry of Textiles has introduced the Production Linked Incentive (PLI) Scheme for Textiles Part-1. This initiative is designed to give a significant push to the manufacturing of Man-Made Fibre (MMF) Apparel, MMF Fabrics, and Technical Textiles. The goal is to help Indian companies grow to a larger scale, become more competitive on the global stage, and create substantial employment opportunities. The scheme provides financial incentives based on the increase in turnover for companies investing in producing specified textile products.

What Is This Scheme?

The PLI Scheme for Textiles Part-1 is part of a larger effort to enhance India's textile manufacturing capabilities. It works by offering financial rewards to companies that increase their production of specific MMF and technical textile items. This is done through two parts, with Part-1 focusing on higher investment and turnover targets. The Ministry of Textiles manages the scheme, with a Project Management Agency (PMA) providing support and an Empowered Group of Secretaries overseeing its progress.

Who Can Benefit From This Scheme?

This scheme is aimed at companies and firms looking to invest significantly in the manufacturing of MMF Apparel, MMF Fabrics, and Technical Textiles. It is particularly beneficial for those planning to establish new manufacturing units and achieve substantial turnover and investment milestones.

Why This Scheme Is Important

The scheme plays a crucial role in modernising India's textile sector. By encouraging the production of MMF and technical textiles, it helps the country meet growing global demand and reduce reliance on imports. It also supports the creation of a robust manufacturing ecosystem, leading to job creation and economic growth, thereby fostering a competitive and self-reliant textile industry.

Objective

This scheme offers financial incentives to textile manufacturers to boost the production of MMF Apparel, MMF Fabrics, and Technical Textiles, aiming for global competitiveness and more jobs.

Benefits

Medical treatment benefits are provided underDeendayal Antyodaya Upchar Yojanathrough the Public Health and Family Welfare Department.

Financial assistance for serious or life-threatening diseases may be provided under the State Illness Assistance Fund, subject to eligibility and approval.

The benefit covers the registered driver or conductor and their eligible family members as defined under the scheme.

Sources and references

Guidelines

Eligibility Criteria

Applicants must establish a new company under the Companies Act, 2013.
A minimum investment of ₹300 crore is required (this excludes land and administrative building costs).
The applicant must achieve a minimum turnover of ₹600 crore in their first performance year.
The applicant must be a company, firm, LLP, or trust registered in India.
Only the manufacturing of notified textile products is eligible.
Minimum value addition of 60% must be maintained (or 30% for processing activities).
Applicants must possess a valid PAN, GST registration, and Director Identification Number (DIN).

Preference is given based on: Investment made, employment generated, technical capabilities, and location. Higher preference is given to manufacturing in aspirational districts and Category C cities.

How To Apply

To apply for the PLI Scheme for Textiles Part-1, companies need to follow the official application procedure as laid out by the Ministry of Textiles. Detailed guidelines and application forms are usually provided through the ministry's website or designated portals.

For detailed application instructions, please refer to the official notifications and guidelines available on the website of the Ministry of Textiles.

Documents Required

Completed Application Form
Duly Signed and Notarized Undertaking
Auditor’s Certificate
Chartered Engineer Certificate
Audited Financial Statements
GST Invoices
Quarterly Review Reports (QRRs)
Consumption And Inventory Register
Proof Of Investment
Company Incorporation Documents
PAN, GST, and DIN Details

FAQ’s

When does the PLI Scheme for Textiles Part-1 end?

The scheme is set to remain operational until March 31, 2030. Incentives can be claimed for up to 5 consecutive performance years, provided all eligibility conditions are met within this period.

What happens if my incremental turnover growth is more than 35%?

The incremental turnover considered for calculating the incentive is capped at 35% growth. So, even if your growth is higher, the incentive will be based on a maximum of 35% increase over the previous year.

Can existing companies apply, or is it only for new ones?

Applicants need to establish a new company under the Companies Act, 2013, if they are selected. However, the initial application can be from an existing firm, LLP, or trust incorporated in India, which will then form the new company for the scheme's purpose.

What exactly are 'notified products' under this scheme?

Notified products refer to specific categories of Man-Made Fibre (MMF) Apparel, MMF Fabrics, and Technical Textiles that are listed and approved under the scheme guidelines. You must manufacture these specific items to be eligible.

What is the incentive rate for the first year of performance?

In the first performance year, selected participants will receive an incentive of 15% on achieving a turnover of ₹600 crore from the notified products.

How quickly will I receive the incentive money after applying?

Once your incentive claim is approved by the competent authority, the disbursement is generally made within 15 days. The claim processing itself takes about 45 days after submission by the PMA.

Is there a minimum value addition requirement?

Yes, applicants must ensure a minimum value addition of 60%. For processing activities specifically, the minimum value addition required is 30%.

What does 'incremental turnover' mean for the incentive calculation?

Incremental turnover refers to the increase in sales turnover of the notified products compared to a base year. From the second performance year onwards, you need to achieve at least a 25% growth in turnover over the previous year to be eligible for incentives.

How are the incentives paid out?

The incentives are disbursed directly to the company's bank account through Direct Bank Transfer, managed via the Public Financial Management System (PFMS).

What are the main components of the PLI Scheme for Textiles?

The PLI Scheme for Textiles is divided into two parts. Part-1 is for companies making higher investments and achieving higher turnover. Part-2 caters to different investment and turnover criteria. This content specifically discusses Part-1.

What investment is needed for Scheme Part-1?

Under Scheme Part-1, you need to make a minimum investment of ₹300 crore. This amount does not include the cost of land and administrative buildings.

What is the target turnover for the first year of the scheme?

To be eligible for incentives in the first performance year, the applicant must achieve a minimum turnover of ₹600 crore from the manufacturing of notified products.