Production Linked Incentive (PLI) Scheme for Textiles Part 2

1. 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.

1. 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.

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1. The applicant should establish a new company under Companies Act, 2013.
2. The applicant should invest a minimum of ₹100 crore (excluding land and administrative building).
3. The applicant should achieve minimum ₹200 crore turnover in the first performance year.
4. The applicant should be a company/firm/LLP/trust incorporated in India.
5. The applicant should manufacture notified products only.
6. The applicant should maintain minimum value addition (60% or 30% for processing).
7. 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).

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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.

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