Production Linked Incentive (PLI) Scheme for Textiles Part-1
Ministry of Textiles · Central government
The Ministry of Textiles' PLI scheme funds companies investing in MMF apparel, fabrics, and technical textiles, offering incentives on incremental turnover.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Production Linked Incentive (PLI) Scheme for Textiles Part-1, introduced by the Ministry of Textiles, Government of India, aims to strengthen domestic manufacturing within the textile sector. The industry contributes significantly to India's industrial output, exports, and employment. This scheme focuses on the production of Man-Made Fibre (MMF) Apparel, MMF Fabrics, and Technical Textiles.
The scheme seeks to help Indian textile manufacturers expand their scale and improve their global competitiveness. Financial incentives are provided to encourage investment in advanced technology and manufacturing processes, with the expectation of higher production volumes, improved product quality, and a stronger international market presence. This is intended to create substantial employment opportunities, particularly in regions with established textile manufacturing clusters.
The scheme follows a performance-linked model, with financial incentives tied directly to the incremental turnover achieved by participating companies in the specified product categories. It is divided into two components, Part-1 and Part-2, with this offering detailing Part-1. Implementation is overseen by the Ministry of Textiles, supported by a dedicated Project Management Agency (PMA), and monitored by the Empowered Group of Secretaries (EGoS). The objective is to develop a resilient and competitive textile industry capable of meeting domestic demand and export targets.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, Partnership firm, One person company
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Revenue band
- From ₹6,00,00,00,000
- Where the business may be based
- Not restricted
- Establish a new company under the Companies Act, 2013. - Minimum investment of ₹300 crore (excluding land and administrative building). - Achieve minimum turnover of ₹600 crore in the first performance year. - Be a company, firm, LLP, or trust incorporated in India. - Manufacture only notified textile products. - Maintain minimum value addition of 60% (or 30% for processing). - Possess PAN, GST, and DIN.
How to apply
1. **Access the Portal:** Start by going to the official website at https://pli.texmin.gov.in/. 2. **Complete the Form:** Fill in the online application with all requested information concerning the enterprise, its proposed investments, and production capacity. 3. **Submit Documents and Undertaking:** Attach the required supporting paperwork and any prescribed declarations. This generally includes certificates of incorporation, financial records, a detailed project report, and evidence of investment. 4. **Pay the Fee:** A processing charge of ₹50,000/- must be remitted online to finalise the submission. 5. **Obtain Acknowledgement:** After a successful submission and payment, an acknowledgement with a distinct Application ID is issued. 5. **Address Queries:** The Ministry or the Project Management Agency (PMA) may seek clarifications. Replies must be furnished within the designated period. 7. **Assessment and Shortlisting:** A Selection Committee conducts the appraisal, looking at eligibility, the scale of investment pledged, and anticipated revenue. 8. **Receive Approval Letter:** Those chosen are given a formal Letter of Approval confirming their enrolment in the scheme. 9. **Begin Production and Meet Goals:** Approved entities must start manufacturing the listed products and work towards the investment and turnover objectives agreed upon. 10. **File Annual Claims:** Every year, participants must submit claims online, demonstrating additional turnover and compliance with other scheme terms. 11. **Verification and Sanction:** The relevant authorities examine and sanction the claims that are filed. 12. **Payment of Incentive:** Upon approval, the incentive amount is transferred directly to the participant's registered bank account.
How applications are assessed
The PLI Scheme for Textiles Part-1 follows a multi-stage selection procedure. Applications are first reviewed by the Project Management Agency (PMA) to confirm they are complete and meet the fundamental eligibility requirements. Following this initial check, a Selection Committee, composed of experts and government officials, evaluates each application on parameters such as proposed investment, employment generation potential, technical capability, and location, with a preference for aspirational districts and Category C cities.
Candidates who are shortlisted may be called for presentations or discussions to elaborate on their proposals. A final decision is then taken, and a Letter of Approval is issued to the successful applicants.
Frequently asked questions
What is the primary objective of the PLI Scheme for Textiles Part-1?
The scheme aims to boost domestic production of MMF apparel, MMF fabrics, and technical textiles, helping the industry scale up, compete globally, and create jobs.
What kind of financial incentive does the scheme provide?
The scheme offers financial incentives to chosen participants, calculated on the incremental turnover of notified goods produced in India. Incentive rates range from 15% in the first year to 11% in the fifth year, linked to defined turnover targets.
What is the minimum investment required to be eligible?
Applicants must invest at least ₹300 crore, excluding land and administrative building costs, to be eligible for the scheme.
Which types of entities are eligible to apply?
The scheme is available to Indian-incorporated companies, firms, LLPs, and trusts that are either setting up a new entity or carrying out significant expansion for the manufacture of notified textile products.
How long are the incentives available?
Incentives apply for up to 5 consecutive performance years, starting from the first performance year, as long as the participant remains compliant with all eligibility and performance requirements.
What is the application process?
The application process is fully online: applicants must visit the official portal, complete the form, upload required documents and undertakings, and pay a ₹50,000 application fee. After submission, a Selection Committee evaluates the applications.
Sectors
- Manufacturing Industrial
- Textiles
- Manufacturing
- Production Linked Incentive
- Mmf Apparel
- Technical Textiles
- Incremental Turnover
- Global Competitiveness
- Employment Generation
Details last verified on 3 August 2026. Source: the issuer's published information.