Production Linked Incentive (PLI) Scheme for Textiles- Forming of new companies & investment made

 To: Members of the Council           

Sub:  Production Linked Incentive (PLI) Scheme for Textiles- Forming of new companies & investment made 

Dear Member,   

We would like to inform you that the Ministry of Textiles has issued Notification No. 12015/03/2020-IT-1 dated 22^nd February, 2022 informing about the amendments made in Notification No. 12015/03/2020-IT dated 24^th September, 2021.  

The said Notification No. 12015/03/2020-IT dated 24^th 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 24^th 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 24^th September, 2021, the matter was considered. Ministry has decided that “A company though registered prior to date of notification i.e. 24^th 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. 24^th September 2021 will not be counted for eligible investment.” 

Members may kindly make a note of the above. 

Thanking you,                   

Yours faithfully,                    

S. BALARAJU            

EXECUTIVE DIRECTOR