Production Linked Incentive (PLI) Scheme for Textiles Part 2

The Ministry of Textiles, Government of India, has introduced the Production Linked Incentive (PLI) Scheme for Textiles Part-2. The scheme targets three segments of the textile industry — MMF Apparel, MMF Fabrics, and Technical Textiles — with the aim of strengthening domestic production capacity in each. It seeks to draw large-scale investment and manufacturing into these segments, thereby improving India's standing in the global textile market and contributing to job creation.

Under the scheme, companies that make eligible investments in manufacturing notified textile products receive financial incentives. These incentives are tied to the incremental turnover that participants achieve, and are organised under two components: Part-1 and Part-2. The Ministry of Textiles oversees implementation, a dedicated Project Management Agency (PMA) provides operational support, and the Empowered Group of Secretaries (EGoS) gives strategic direction.

The scheme's key objectives are:

- To promote the production of MMF Apparel & Fabrics and Technical Textiles products in the country. - To enable the textile industry to achieve substantial size and scale, fostering large-scale operations. - To position the Indian textile sector as globally competitive and a significant creator of employment opportunities for the populace. - To support the establishment and growth of viable enterprises and cultivate a robust and competitive textile industry ecosystem within India.

1. **Step 1: Reach the Portal:** The applicant is required to open the official portal at http://PLI.texmin.gov.in. 2. **Step 2: Complete the Application Form:** Every required detail must be entered accurately by the applicant in the online application form. 3. **Step 3: Submit Documents and Undertaking:** The documents stipulated in the application, along with a signed undertaking, have to be uploaded. 4. **Step 4: Remit the Application Fee:** A fee of ₹50,000/- is payable online. 5. **Step 5: Obtain Acknowledgement:** On successful submission, an acknowledgement carrying a unique Application ID is issued to the applicant. 6. **Step 6: Address Queries:** The Ministry or the Project Management Agency (PMA) may put forward queries or ask for clarifications; the applicant is obliged to respond within the timeframe prescribed. 7. **Step 7: Evaluation and Selection:** A dedicated Selection Committee carries out the evaluation and selection of applications. 8. **Step 8: Letter of Approval:** An official Letter of Approval is issued to applicants who are selected. 9. **Step 9: Begin Manufacturing and Meet Targets:** Applicants who secure approval have to start manufacturing activities and meet the investment and turnover targets laid down in the scheme guidelines. 10. **Step 10: File Annual Claims:** Participants must file their annual incentive claims online for verification. 11. **Step 11: Verification and Approval of Claims:** The claims filed are verified in detail and approved by the competent authorities. 12. **Step 12: Disbursement of Incentive:** After approval, the incentive amount is credited directly to the participant's registered bank account.

A Selection Committee constituted for the purpose carries out the appraisal of applications received under Part 2 of the PLI Scheme for Textiles. Its assessment rests on parameters including the minimum investment threshold, the manufacturing plans put forward, and the likelihood of meeting the turnover targets laid down under the scheme.

Applicants found to satisfy the scheme's objectives and eligibility conditions are shortlisted and issued a Letter of Approval, which enables them to move ahead with their manufacturing investments and performance commitments.