Objective
The ₹10,683-crore scheme covers 10 technical products, 40 man-made items subsidy for textile industries Production Linked Incentive Scheme For Textile
The Textile Ministry is likely to impose caps on the incentive that can claim by a company under
the Production Linked Incentive (PLI) scheme for man-made fiber and technical textiles to ensure that big players do not corner a large part of the funds, according to sources.
“A cap on the maximum amount that can claimed under the PLI scheme by a textile company is likely
to put in place so that a big player can’t take most of the amount
that has earmark for the sector and there is a more even distribution,”
The PLI scheme was launche for 10 sectors in November 2011
to promote domestic manufacturing by providing financial incentives on incremental turnover for five years.
The textile sector has allocated ₹10,683 crore under the scheme which,
the Ministry has decided, will offere for incremental production in 40 identified man-made fibre items and 10 technical textiles products.
“The 40 MMF lines identified for the PLI push are the ones where India’s share in world market is negligible while
the 10 technical textile products are the top globally trad lines,” the source said.
As soon as the Union Cabinet approves the PLI scheme for the textile sector, which is in the last stages of discussion and finalisation, it will be notified by
the Textiles Ministry and the modules for registering interested players will made, the source said.
According to sources in the industry who have been part of the government’s discussion on the contours of the PLI scheme,
the incentive rates offere for the textiles sector is one of the highest (compared to other sectors).
It is likely to fixed at 9 per cent of turnover in the first year for companies with a turnover between ₹100 crore and ₹500 crore and 7 per cent for those above that.
In the subsequent four years it would keep tapering.
Eligibility norms
While the minimum turnover for eligibility under the scheme could be ₹100 crore, it need not be for the specific item for which a company wants to claim PLI.
“In case a textile company is presently engage in production of cotton, woollen or jute products but wants to get into a technical textile item that is covered under the PLI scheme, it can eligible if it meets the minimum turnover criteria through production of the other items.
While the incremental production has to of the item for which PLI is being claime
the applicant has to maintain the level of turnover of the items it was originally manufacturing
,” the source said. To claim incentive under the PLI scheme, the industry will have to get registere with the government.
“The eligibility is for both domestic sale and exports as restricting it to exports would make
the scheme incompatible at the WTO,” the official said.
PLI scheme for textile industry production linked incentive scheme for textile industry
for textile industry PLI scheme for textile industry production linked incentive scheme for textile industry
While the incremental production has to be of the item for which
SCHEME SEGMENTS AND INCENTIVES
Scheme Part- 1:
Any person, which includes firm / company willing to invest a minimum ₹300 Crore in
Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce
products of Notified lines, shall be eligible to apply for participation in this part of the scheme
Scheme Part-2:
Any person, which includes firm / company willing to invest a minimum ₹100 Crore in
Plant, Machinery, Equipment and Civil Works (excluding land and administrative building cost) to produce
products of Notified lines, shall be eligible to apply for participation in this part of the scheme
Incremental turnover and Incentive Rate
Incentive under the scheme will be provided on incremental turnover only
as per the rate indicated as under
| Scheme Part-1 | Scheme Part-2 | |||
| Performance Year | Incremental turnover on minimum ₹300cr investment | Rate of incentive in % | Incremental turnover on minimum ₹100cr | Rate of incentive in % |
| Year 1 (FY 2024-2025) | ₹600 Crore | 15 | ₹200 Crore | 11 |
| Year 2 (FY 2025-2026) | 25% | 14 | 25% | 10 |
| Year 3 (FY 2026-2027) | 25% | 13 | 25% | 9 |
| Year 4 (FY 2027-2028) | 25% | 12 | 25% | 8 |
| Year 5 (FY 2028-2029) | 25% | 11 | 25% | 7 |
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