Circular No. ES/250/2021-22 23rd February, 2022
To: Members of the Council
Sub: Production Linked Incentive (PLI) Scheme for Textiles- Forming of new companies & investment made
We would like to inform you that the Ministry of Textiles has issued Notification No. 12015/03/2020-IT-1 dated 22nd February, 2022 informing about the amendments made in Notification No. 12015/03/2020-IT dated 24th September, 2021.
The said Notification No. 12015/03/2020-IT dated 24th September 2021 mentions that the applicant will form a separate company under Companies Act, 2013, before commencement of investment under this scheme. Investment made in anticipation after 24th September, 2021 may be taken into account to meet investment criteria.
In view of the various representations received from the industry regarding requirement to form a new company and investment made thereto prior to 24th September, 2021, the matter was considered. Ministry has decided that “A company though registered prior to date of notification i.e. 24th September 2021, but has not started production will be treated as a new company for the purpose of benefits under this scheme. However, the investment made prior to date of notification i.e. 24th September 2021 will not be counted for eligible investment.”
Members may kindly make a note of the above.