Govt notifies major amendments to PLI scheme for textiles

New Delhi, Oct 9 (PTI) The Textile Ministry on Thursday announced significant amendments to the Production Linked Incentive Scheme for textile products with an aim to address challenges faced by the industry and encourage fresh investments.

The amendments to the scheme for man-made fibre (MMF) apparel, fabrics and technical textile products include expansion of products eligible to receive sops, reduction in minimum investment threshold by half, and lowering incremental turnover criteria for availing incentives to 10 per cent from 25 per cent earlier.

These amendments are designed to address industry challenges, enhance ease of doing business, encourage fresh investments in the sector and accelerate growth, underscoring the government's focus on fostering employment and driving India's leadership in the global textile market. Amended guidelines of the Scheme are also being issued, an official statement said.

Under the revised scheme, more products have been added to the list of eligible items for receiving government's financial support with the inclusion of 8 new HSN codes for MMF apparel and 9 new HSN codes for MMF fabrics.

Moreover, unlike earlier, applicants can now establish project units within the existing companies.

With effect from August 1, 2025, the minimum investment requirement for all new applicants stands reduced to half from Rs 300 crore to Rs 150 crore in Part-1 category and from Rs 100 crore to Rs 50 crore in Part-2 category of the scheme.

Besides, starting from the current financial year, applicants have to demonstrate a minimum of 10 per cent incremental turnover over the previous year to qualify for incentives from Year 2 onwards, as against 25 per cent turnover criteria earlier.

The above revisions will significantly reduce entry barriers and financial thresholds, enabling faster execution, the textiles ministry said.

To encourage wider participation from the industry, the ministry of textiles has opened the PLI scheme application portal until December 31, 2025.

PLI Scheme for Textiles was notified on September 24, 2021 with an objective to promote production of MMF apparel & fabrics and products of technical textiles in the country to enable the industry achieve size and scale, become competitive, create employment opportunities for people and support creation of a viable enterprise.

So far, 74 participant companies with committed investment of Rs 28,711 crore have been selected as beneficiaries under the PLI scheme. PTI RSN HVA