Sardar Patel National Unity Award 2026

This scheme aims to boost the production of MMF (Man-Made Fibre) apparel, fabrics, and technical textiles, making Read More... the Indian textile industry more competitive globally and creating jobs. It provides financial incentives to eligible manufacturers based on their performance. Read less

Details

The Indian government is committed to making the textile sector a global leader. The Production Linked Incentive (PLI) Scheme for Textiles, specifically Part 2, is a major step towards this goal. It focuses on promoting the manufacture of MMF Apparel, MMF Fabrics, and Technical Textiles within India.

What Is This Scheme?

The PLI Scheme for Textiles Part 2 is designed to encourage companies to invest in and produce specific textile products. By offering financial rewards linked to production increases, the scheme aims to boost the scale of operations, enhance global competitiveness, and generate significant employment opportunities. It's managed by the Ministry of Textiles, with support from a Project Management Agency (PMA).

Who Can Benefit From This Scheme?

This scheme is primarily for companies that plan to invest significantly and increase their production of MMF Apparel, MMF Fabrics, and Technical Textiles. It's structured to support both large-scale investments and those that meet specific criteria for growth and value addition in these specialized textile segments.

Why This Scheme Is Important

By incentivizing the production of MMF-based items and technical textiles, the scheme helps India tap into growing global markets. It supports the creation of robust businesses, boosts exports, and provides numerous job opportunities, ultimately strengthening the overall textile ecosystem in the country.

Objective

This scheme aims to boost the production of MMF (Man-Made Fibre) apparel, fabrics, and technical textiles, making the Indian textile industry more competitive globally and creating jobs. It provides financial incentives to eligible manufacturers based on their performance.

Benefits

Tangible Benefits

Conferment of the Sardar Patel National Unity Award.

A Sanad (Certificate) issued under the hand and seal of the President of India.

A specially designed medallion made of fine silver plated with gold.

National recognition and prestige.

Publication of the awardee details in an official commemorative brochure.

Number of Awardees

Not more than 3 awards are conferred in a year.

Decoration Details

The decoration is shaped like a lotus leaf measuring approximately 6 cm in length and 6.2 cm in breadth.

The medallion is made of fine silver and gold plating.

The obverse side features the portrait of Sardar Vallabhbhai Patel.

The reverse side displays the State Emblem of India and the national motto in Hindi.

Mode of Disbursement

Physical medals and certificates are presented during the annually official ceremony.

Award announced on 31st October (National Unity Day) and presented at Rashtrapati Bhavan.

Lifetime honour unless withdrawn by the President of India.

Sources and references

Scheme Details

Eligibility Criteria

Applicants must establish a new company under the Companies Act, 2013, upon selection.
A minimum investment of ₹100 crore is required (this excludes costs for land and administrative buildings).
Applicants must achieve a minimum turnover of ₹200 crore in their first performance year.
The applicant must be a company, firm, LLP, or trust already incorporated in India.
Only the manufacture of notified textile products is eligible for incentives.
Minimum value addition must be maintained: 60% for manufacturing and 30% for processing.
Applicants must possess a valid PAN, GST registration, and Director Identification Number (DIN).

Preference/Priority Criteria

Preference may be given based on factors like investment amount, employment generation, technical capabilities, and the location of the manufacturing unit. Higher preference is given to units located in aspirational districts and Category C cities.

How To Apply

Companies interested in the PLI Scheme for Textiles Part 2 need to submit their applications through the designated online portal. The Ministry of Textiles, with the support of a Project Management Agency (PMA), oversees the application and selection process.

Submit the application form through the official online portal.
Ensure all required documents are attached.
Await assessment and selection by the Ministry of Textiles and the PMA.
Upon selection, establish a new company under the Companies Act, 2013, and commence manufacturing.
Meet the specified investment and turnover thresholds to qualify for incentives.
Submit claims annually for performance-linked incentives.

Note: The exact application link and detailed guidelines are available on the official website of the Ministry of Textiles.

Documents Required

Completed Application Form
Signed and Notarised 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

What is Scheme Part-2 under the PLI Scheme for Textiles?

Scheme Part-2 is a segment within the Production Linked Incentive (PLI) Scheme for Textiles. It’s designed for applicants who meet slightly different investment and turnover requirements, offering performance-based incentives for specific textile products.

What’s the minimum investment needed for Scheme Part-2?

To be eligible for Scheme Part-2, an applicant must invest at least ₹100 crore. This amount does not include the cost of land or the administrative building.

What is the minimum turnover requirement in the first year for Scheme Part-2?

Under Scheme Part-2, applicants must achieve a minimum turnover of ₹200 crore from manufacturing the notified products during the first performance year.

Who is eligible to apply for Scheme Part-2?

Any company, firm, LLP, or trust incorporated in India can apply. However, upon selection, they are required to set up a new company under the Companies Act, 2013, to participate in the scheme.

Which types of textile products are covered under Scheme Part-2?

Scheme Part-2 covers the manufacturing of notified MMF Apparel, MMF Fabrics, and Technical Textile products as specified in the scheme guidelines.

How are the incentives calculated for Scheme Part-2?

Incentives are calculated based on the increase in turnover of the eligible products compared to a base year. This is subject to meeting the minimum investment, turnover, and growth criteria laid out in the scheme.

What are the incentive rates for Scheme Part-2?

The incentive rates decrease over the five-year period. They start at 11% in Year 1 and go down to 7% by Year 5, linked to achieving specific turnover targets.

Is there a growth target for applicants in Scheme Part-2?

Yes, from the second performance year onwards, applicants must achieve a minimum of 25% incremental turnover growth compared to the previous year to remain eligible for incentives.

For how long can a company receive incentives under Scheme Part-2?

Companies can receive incentives for a maximum of 5 consecutive performance years, provided they consistently meet all the scheme's eligibility and performance conditions.

Is there a limit on the incremental turnover used for incentive calculation?

Yes, the incremental turnover that qualifies for incentive calculation is capped at a 35% growth rate over the previous year, as per the scheme's rules.

How are the incentives disbursed to eligible companies under Scheme Part-2?

The incentives are directly transferred to the bank accounts of the selected participants through the Public Financial Management System (PFMS) after all claims are verified and approved.

When can a company apply for incentives under Scheme Part-2?

Once a company has made the required investment and achieved the stipulated turnover in a performance year, it can then submit its claim for the performance-linked incentive for that year.