Central GovernmentVerified

Production Linked Incentive (PLI) Scheme for Textiles Part 2

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.

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Official Source ↗

Source: myScheme.gov.in ↗Last verified: 19 Aug 2026·YojnaGuru is not affiliated with or endorsed by any government body

About This Scheme

The scheme Production Linked Incentive (PLI) Scheme for Textiles Part-2 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

₹200.0 Cr

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-2

Year 1: 11% on ₹200 crore turnover
Year 2: 10% on ₹250 crore
Year 3: 9% on ₹312.5 crore
Year 4: 8% on ₹390.63 crore
Year 5: 7% on ₹488.2 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.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.

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The applicant should establish a new company under Companies Act, 2013.
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The applicant should invest a minimum of ₹100 crore (excluding land and administrative building).
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The applicant should achieve minimum ₹200 crore turnover in the first performance year.
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The applicant should be a company/firm/LLP/trust incorporated in India.
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The applicant should manufacture notified products only.
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The applicant should maintain minimum value addition (60% or 30% for processing).
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The applicant should have PAN, GST, and DIN.
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> Preference / Priority:
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> Preference is given based on investment, employment, technical capacity, and location (higher preference to aspirational districts and Category C cities).

Required Documents

✦
Application Form
✦
Undertaking (Duly Signed and Notarised)
✦
Auditor’s Certificate
✦
Chartered Engineer Certificate
✦
Audited Financial Statements
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GST Invoices
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Quarterly Review Reports (QRRs)
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Consumption And Inventory Register
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Proof Of Investment
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Company Incorporation Documents
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PAN, GST, DIN Details

✦ Required ◦ Optional

How to Apply

OOnline

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 ₹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.

Quick Info

Level: Central Government
Max benefit: ₹200.0 Cr

Data Sources

https://www.myscheme.gov.in/schemes/plitextile2 ↗Accessed Today