About this business scheme
The scheme aims to promote MMF and technical textile production for global competitiveness and employment generation. Through this scheme, performance-based financial incentives are provided to textile manufacturers.
The scheme "Production Linked Incentive (PLI) Scheme for Textiles Part-1" has been launched by the Ministry of Textiles, Government of India, and aims to promote the production of MMF Apparel, MMF Fabrics, and Technical Textiles to achieve scale, enhance global competitiveness, and generate employment. Through this scheme, financial incentives based on incremental turnover are provided to companies investing in the manufacturing of notified textile products under two components, Part-1 and Part-2. The scheme is implemented by the Ministry of Textiles with support from a Project Management Agency (PMA) and monitored by the Empowered Group of Secretaries (EGoS).
Objectives:
- To promote the production of MMF Apparel & Fabrics and Technical Textiles products in the country.
- To enable the textile industry to achieve size and scale.
- To become globally competitive and a creator of employment opportunities for people.
- To support the creation of a viable enterprise and a competitive textile industry.
Benefits at a glance
| Scheme name | Production Linked Incentive (PLI) Scheme for Textiles Part-1 (PLITEXTTILES) |
|---|---|
| Launched by | Ministry Of Textiles |
| Benefit type | Cash (money paid to your bank account) |
| Category | Business |
| Level / State | Central · All India |
| Official portal | pli.texmin.gov.in (link at the end of this page) |
Key facts
| Scheme type | Central Sector Scheme |
|---|---|
| Scheme for | Infra |
| Application mode | Online |
| Last date | Ongoing (no last date notified) |
| DBT (direct bank transfer) | No |
| Age | No lower limit to 80 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 0 to 80 years
- 📝Online
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
- Financial Incentive:
- Incentive is provided to selected participants based on incremental turnover of notified products manufactured in India.
- The incentive is available for a maximum period of 5 years from the first performance year.
- Incentive Structure:
- Scheme Part-1
- Year 1: 15% on achieving Rs. 600 crore turnover
- Year 2: 14% on Rs. 750 crore
- Year 3: 13% on Rs. 937.5 crore
- Year 4: 12% on Rs. 1171.87 crore
- Year 5: 11% on Rs. 1464.84 crore
Conditions Linked to Benefits:
- The participant should achieve the minimum threshold investment and prescribed turnover to qualify for incentives.
- The participant should achieve 25% incremental turnover over the previous year from Year 2 onwards.
- Incentive is provided only when both turnover targets and incremental growth conditions are met.
- Incremental turnover considered for incentive is capped at 35% growth.
Mode of Disbursement: Incentive is disbursed through Direct Bank Transfer to the participant’s account via the Public Financial Management System (PFMS).
Frequency of Disbursement: Incentive claims are processed and disbursed on an annual basis.
Time of Disbursement: Claims are processed within 45 days of submission by the Project Management Agency (PMA). Disbursement is made within 15 days after approval by the competent authority.
Validity of Benefits: The scheme is operational till 31 March 2030. Incentives are available for 5 consecutive performance years, subject to meeting eligibility conditions.
Who qualifies
- The applicant should establish a new company under Companies Act, 2013.
- The applicant should invest a minimum of Rs. 300 crore (excluding land and administrative building).
- The applicant should achieve minimum Rs. 600 crore turnover in the first performance year.
- The applicant should be a company/firm/LLP/trust incorporated in India.
- The applicant should manufacture notified products only.
- The applicant should maintain minimum value addition (60% or 30% for processing).
- The applicant should have PAN, GST, and DIN.
Preference / Priority:
Preference is given based on investment, employment, technical capacity, and location (higher preference to aspirational districts and Category C cities).
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.
Papers to keep ready
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Registration walkthrough
Online
Step 1: The applicant should visit the official portal: http://PLI.texmin.gov.in.
Step 2: The applicant should fill out the online application form.
Step 3: The applicant should upload documents and submit an undertaking.
Step 4: The applicant should pay the Rs. 50,000/- application fee online.
Step 5: The applicant will receive an acknowledgement with the Application ID.
Step 6: The Ministry/PMA may raise queries, which must be responded to within the prescribed time.
Step 7: Applications are evaluated and selected by the Selection Committee.
Step 8: Selected applicants receive a Letter of Approval.
Step 9: The applicant should commence manufacturing and achieve the required targets.
Step 10: The participant should submit annual incentive claims online.
Step 11: Claims are verified and approved.
Step 12: The incentive is disbursed to the bank account.
Frequently asked questions
What is Scheme Part-1 under the PLI Scheme for Textiles?
Scheme Part-1 is a component of the Production Linked Incentive (PLI) Scheme for Textiles that provides financial incentives to applicants making higher investments and achieving higher turnover in notified textile products.
What is the minimum investment required under Scheme Part-1?
The applicant should make a minimum investment of Rs. 300 crore (excluding land and administrative building costs).
What is the minimum turnover required under Scheme Part-1?
The applicant should achieve a minimum turnover of Rs. 600 crore from notified products in the first performance year.
Who can apply under Scheme Part-1?
The applicant should be a company/firm/LLP/trust incorporated in India and, upon selection, should form a new company under the Companies Act, 2013.
What kind of products are covered under Scheme Part-1?
The applicant should manufacture notified MMF Apparel, MMF Fabrics, and Technical Textile products as specified under the scheme.
How is the incentive calculated under Scheme Part-1?
The incentive is calculated based on incremental turnover of notified products over the base year, subject to achieving prescribed thresholds and conditions.
What are the incentive rates under Scheme Part-1?
Incentives range from 15% in the first year to 11% in the fifth year, depending on the achieved turnover levels.
Is there any growth condition to receive incentives?
Yes, the applicant should achieve a minimum 25% incremental turnover growth over the previous year from the second year onwards.
For how many years are incentives available under Scheme Part-1?
Incentives are available for a maximum of 5 years, subject to meeting all conditions.
How are incentives disbursed under Scheme Part-1?
Incentives are disbursed through Direct Bank Transfer via the Public Financial Management System (PFMS) after approval of claims.
When can an applicant start claiming incentives?
The applicant can start claiming incentives after meeting the required investment and turnover thresholds in the performance year.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Official Website pli.texmin.gov.in
- Guidelines pli.texmin.gov.in (PDF)
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
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