What is the purpose of Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Production Linked Incentive (PLI) Scheme for Textiles Part-1 is a government welfare initiative designed to support Infra, Business Entity through benefits related to Skills & Employment, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.

Who can apply for Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Eligibility for Production Linked Incentive (PLI) Scheme for Textiles Part-1 may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.

What benefits are offered under Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Benefits under Production Linked Incentive (PLI) Scheme for Textiles Part-1 may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.

Which department manages Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Production Linked Incentive (PLI) Scheme for Textiles Part-1 is managed by Ministry Of Textiles and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.

Can users apply online for Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Yes, eligible applicants may be able to apply online for Production Linked Incentive (PLI) Scheme for Textiles Part-1 through official government portals, authorised service centres, or digital application systems depending on the implementation process.

Is Aadhaar mandatory for Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.

Where can users apply for Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Applications for Production Linked Incentive (PLI) Scheme for Textiles Part-1 may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.

What documents may be required for Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.

Is Production Linked Incentive (PLI) Scheme for Textiles Part-1 a central government scheme?

Yes, Production Linked Incentive (PLI) Scheme for Textiles Part-1 is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.

Does Production Linked Incentive (PLI) Scheme for Textiles Part-1 provide business loan or startup assistance?

Production Linked Incentive (PLI) Scheme for Textiles Part-1 may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.

Is collateral required under Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.

Can CSC centres help users apply for Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.

How can users check the latest updates for Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.

Can beneficiaries track application status for Production Linked Incentive (PLI) Scheme for Textiles Part-1?

Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.

Where can users get help for Production Linked Incentive (PLI) Scheme for Textiles Part-1 in All India?

Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.

Which nearby public services may help with Production Linked Incentive (PLI) Scheme for Textiles Part-1 applications?

Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.

Production Linked Incentive (PLI) Scheme for Textil…

Scheme profile

DBT (direct benefit transfer): No

Categories: Skills & Employment, Business & Entrepreneurship

Sub-categories: Employment services and jobs, Machine & skill up-Gradation

Target beneficiaries: Business Entity

Tags: MMF Fabrics, Technical Textiles, MMF Apparel, Textile Production, Textile Manufacturers, Employment Generation

Details

The scheme "Production Linked Incentive (PLI) Scheme for Textiles Part-1" 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

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-1
Year 1: 15% on achieving ₹600 crore turnover
Year 2: 14% on ₹750 crore
Year 3: 13% on ₹937.5 crore
Year 4: 12% on ₹1171.87 crore
Year 5: 11% on ₹1464.84 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

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-1
Year 1: 15% on achieving ₹600 crore turnover
Year 2: 14% on ₹750 crore
Year 3: 13% on ₹937.5 crore
Year 4: 12% on ₹1171.87 crore
Year 5: 11% on ₹1464.84 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

The applicant should establish a new company under Companies Act, 2013.
The applicant should invest a minimum of ₹300 crore (excluding land and administrative building).
The applicant should achieve minimum ₹600 crore turnover in the first performance year.
The applicant should be a company/firm/LLP/trust incorporated in India.
The applicant should manufacture notified products only.
The applicant should maintain minimum value addition (60% or 30% for processing).
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).

Exclusions

The applicant should not be bankrupt or a defaulter.
The applicant should not be blacklisted by any government authority.
Turnover from trading or job work is not considered.

Application Process

Online

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.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What is Scheme Part-1 under the PLI Scheme for Textiles?: Scheme Part-1 is a component of the Production Linked Incentive (PLI) Scheme for Textiles that provides financial incentives to applicants making higher investments and achieving higher turnover in notified textile products.
What is the minimum investment required under Scheme Part-1?: The applicant should make a minimum investment of ₹300 crore (excluding land and administrative building costs).
What is the minimum turnover required under Scheme Part-1?: The applicant should achieve a minimum turnover of ₹600 crore from notified products in the first performance year.
Who can apply under Scheme Part-1?: The applicant should be a company/firm/LLP/trust incorporated in India and, upon selection, should form a new company under the Companies Act, 2013.
What kind of products are covered under Scheme Part-1?: The applicant should manufacture notified MMF Apparel, MMF Fabrics, and Technical Textile products as specified under the scheme.
How is the incentive calculated under Scheme Part-1?: The incentive is calculated based on incremental turnover of notified products over the base year, subject to achieving prescribed thresholds and conditions.
What are the incentive rates under Scheme Part-1?: Incentives range from 15% in the first year to 11% in the fifth year, depending on the achieved turnover levels.
Is there any growth condition to receive incentives?: Yes, the applicant should achieve a minimum 25% incremental turnover growth over the previous year from the second year onwards.
For how many years are incentives available under Scheme Part-1?: Incentives are available for a maximum of 5 years, subject to meeting all conditions.
How are incentives disbursed under Scheme Part-1?: Incentives are disbursed through Direct Bank Transfer via the Public Financial Management System (PFMS) after approval of claims.
When can an applicant start claiming incentives?: The applicant can start claiming incentives after meeting the required investment and turnover thresholds in the performance year.

Official links

References

Official Website: https://pli.texmin.gov.in/Scheme-Notifications
Guidelines: https://pli.texmin.gov.in/frontend/images/Documents/4.%20PLI%20Guidelines_28.12.2021.pdf

Frequently asked questions

What is the purpose of Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Production Linked Incentive (PLI) Scheme for Textiles Part-1 is a government welfare initiative designed to support Infra, Business Entity through benefits related to Skills & Employment, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Eligibility for Production Linked Incentive (PLI) Scheme for Textiles Part-1 may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Benefits under Production Linked Incentive (PLI) Scheme for Textiles Part-1 may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Production Linked Incentive (PLI) Scheme for Textiles Part-1 is managed by Ministry Of Textiles and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Yes, eligible applicants may be able to apply online for Production Linked Incentive (PLI) Scheme for Textiles Part-1 through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Applications for Production Linked Incentive (PLI) Scheme for Textiles Part-1 may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is Production Linked Incentive (PLI) Scheme for Textiles Part-1 a central government scheme?: Yes, Production Linked Incentive (PLI) Scheme for Textiles Part-1 is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
Does Production Linked Incentive (PLI) Scheme for Textiles Part-1 provide business loan or startup assistance?: Production Linked Incentive (PLI) Scheme for Textiles Part-1 may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
Is collateral required under Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
Can CSC centres help users apply for Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Can beneficiaries track application status for Production Linked Incentive (PLI) Scheme for Textiles Part-1?: Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Production Linked Incentive (PLI) Scheme for Textiles Part-1 in All India?: Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Production Linked Incentive (PLI) Scheme for Textiles Part-1 applications?: Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.