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. This initiative targets specific segments of the textile industry, namely MMF Apparel, MMF Fabrics, and Technical Textiles. The scheme is designed to encourage domestic manufacturing through large-scale investment, with the aim of strengthening India's position in the global textile market and generating employment.

Financial incentives under the scheme are offered to companies that invest in the production of notified textile products. These incentives are tied to the incremental turnover achieved by participants and are administered under two components, Part-1 and Part-2. The Ministry of Textiles oversees implementation, supported by a Project Management Agency (PMA) for operational matters, while the Empowered Group of Secretaries (EGoS) provides strategic direction.

The scheme's stated objectives are:

• To encourage domestic production of MMF Apparel, MMF Fabrics, and Technical Textiles.
• To help the textile industry attain greater scale and operational size.
• To enhance the global competitiveness of the Indian textile sector and create significant employment opportunities.
• To support the formation of viable enterprises and foster a resilient, competitive textile ecosystem in India.

The application procedure is outlined below.

1. Access the Portal: Begin by visiting the official portal at http://PLI.texmin.gov.in.
2. Complete the Application Form: Fill in the online application form with all the necessary information.
3. Upload Documents and Undertaking: Submit the required documents and a signed undertaking as per the application specifications.
4. Pay the Application Fee: An application fee of ₹50,000/- is payable online.
5. Receive Acknowledgement: After a successful submission, an acknowledgement containing a unique Application ID will be issued.
6. Address Queries: The Ministry or the Project Management Agency (PMA) may request clarifications or raise queries. These must be answered within the stipulated period.
7. Evaluation and Selection: A designated Selection Committee will review and choose the applications.
8. Receive Letter of Approval: Successful applicants will be issued an official Letter of Approval.
9. Start Manufacturing and Meet Targets: Approved applicants must begin manufacturing operations and meet the investment and turnover targets specified in the scheme guidelines.
10. Submit Annual Claims: Participants must file their annual incentive claims online for review.
11. Claim Verification and Approval: The submitted claims will be checked and approved by the relevant authorities.
12. Incentive Disbursement: Following approval, the incentive amount will be transferred directly to the participant's registered bank account.

The Selection Committee evaluates each application for the PLI Scheme for Textiles Part 2 against set parameters, including the minimum investment threshold, the manufacturing blueprint submitted, and the likelihood of meeting specified turnover goals. Companies that clear this assessment and satisfy the scheme’s eligibility requirements are chosen and receive a Letter of Approval, which authorises them to move forward with their investment plans and output commitments.