Sardar Patel National Unity Award 2026

This scheme aims to boost MMF and technical textile manufacturing in India, making the industry more competitive Read More... globally and creating jobs, by offering performance-based financial incentives to textile makers. Read less

Details

The Indian government is keen on making the textile industry a global powerhouse. Through the Production Linked Incentive (PLI) Scheme for Textiles Part 2, it's providing a major push to manufacturers of Man-Made Fibre (MMF) apparel, MMF fabrics, and Technical Textiles.

What Is This Scheme?

This scheme is a part of a larger initiative by the Ministry of Textiles to encourage large-scale production of specific textile goods within India. It offers financial rewards to companies that invest and increase their turnover in producing MMF apparel, MMF fabrics, and technical textiles. The goal is to help Indian companies compete better on the world stage and create more employment opportunities.

Who Can Benefit From This Scheme?

The scheme is designed for businesses looking to expand their manufacturing capabilities in MMF apparel, MMF fabrics, and technical textiles. It's particularly beneficial for new companies and those willing to make significant investments in plant and machinery, aiming for substantial growth in their output and sales.

Why This Scheme Is Important

By incentivizing production and growth, this scheme helps build a stronger, more self-reliant textile sector in India. It aims to attract significant investment, foster innovation, and position India as a leading global supplier of these specialized textile products, ultimately contributing to economic growth and job creation.

Objective

This scheme aims to boost MMF and technical textile manufacturing in India, making the industry more competitive globally and creating jobs, by offering performance-based financial incentives to textile makers.

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.
A minimum investment of ₹100 crore is required (this excludes costs for land and administrative buildings).
The company must achieve a minimum turnover of ₹200 crore in its first performance year.
Applicants must be Indian companies, firms, LLPs, or trusts registered in India.
Only the manufacturing of notified textile products is eligible for incentives.
A minimum value addition of 60% (or 30% for processing units) must be maintained.
Applicants need to have a valid PAN, GST registration, and Director Identification Number (DIN).

Preference is given based on:

Investment amount
Employment generated
Technical capabilities
Location (with higher preference for aspirational districts and Category C cities).

How To Apply

Interested companies need to submit a formal application, likely through the official portal or designated channel provided by the Ministry of Textiles.
The application form must be completed accurately, along with all required supporting documents.
Ensure all undertaking forms are duly signed and notarized.
Submit the application along with the Auditor’s Certificate and Chartered Engineer Certificate.
Provide audited financial statements and GST invoices as part of the submission.
Follow the guidelines for submitting Quarterly Review Reports (QRRs), Consumption and Inventory Register, and Proof of Investment.
Company incorporation documents and details of PAN and DIN are also essential.

For the most precise application procedure, please refer to the official scheme guidelines and the designated online portal or contact the Ministry of Textiles.

Documents Required

Completed Application Form
Undertaking (Duly Signed and Notarized)
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 the main goal of the PLI Scheme for Textiles Part 2?

The primary goal is to boost the production of MMF apparel, MMF fabrics, and Technical Textiles in India, making the sector more competitive globally and creating jobs.

How long can a company receive incentives under this scheme?

Companies can receive incentives for a maximum of 5 consecutive performance years, provided they meet all the laid-out conditions.

What kind of products fall 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.

Is there a minimum turnover requirement for the first year of operation?

Yes, applicants must achieve a minimum turnover of ₹200 crore from manufacturing the notified products in their first performance year.

What is the minimum investment needed to be eligible for Scheme Part 2?

Companies must make a minimum investment of ₹100 crore. This amount does not include the cost of land and administrative buildings.

How is the incentive amount calculated?

The incentive is based on the incremental turnover of eligible products manufactured in India, calculated as a percentage of the increased sales over the base year, within certain limits.

What happens if a company doesn't achieve the required year-on-year growth?

From the second year onwards, companies need to achieve at least 25% incremental turnover growth. Failure to meet this, along with the overall turnover target, means they won't receive incentives for that performance year.

Who is eligible to apply for the PLI Scheme for Textiles Part 2?

The scheme is open to companies, firms, LLPs, or trusts incorporated in India. Upon selection, they are required to form a new company under the Companies Act, 2013.

How does the government disburse the incentives?

Incentives are paid directly to the eligible participants' bank accounts through the Public Financial Management System (PFMS).

What is the deadline for claiming incentives?

The scheme is operational until March 31, 2030. Incentives are provided for 5 consecutive performance years, and claims can be processed annually after meeting eligibility criteria.

Is there a limit on how much incremental turnover can be counted for incentives?

Yes, the incremental turnover that qualifies for incentive calculation is capped, with a maximum growth of 35% being considered.

Are there any specific documents that must be submitted with the application?

Yes, you will need to submit documents like the application form, auditor's certificate, financial statements, proof of investment, and company incorporation details, among others.