Production Linked Incentive (PLI) Scheme for Textiles

Circular No. ES/167/2021-22                                                                   29^th September, 2021    

To: Members of the Council      

Sub: Production Linked Incentive (PLI) Scheme for Textiles

Dear Member,       

As you are aware, the Government has approved the Production Linked Incentive (PLI) Scheme for promotion of MMF Apparel, MMF Fabrics and Products of Technical Textiles.  In this regard, the Ministry of Textiles has issued a Gazette Notification No. 12015/03/2020-IT dated 24^th September, 2021. The scheme will be implemented from the date of this notification. The Council thanks the Government of India, Ministry of Textiles and Commerce & Industry for approving the PLI Scheme for promotion of MMF Apparel, MMF Fabrics and Products of Technical Textiles.   

Highlights of the PLI Scheme for MMF Textiles are as follows:  

• Incentives under the scheme will be available for 5 years period i.e. during FY 2025-26 to FY 2029-30 on incremental turnover achieved during FY 2024-25 to FY 2028-29 with a budgetary outlay of Rs. 10,683 crore.  
   
• However, if a company is able to achieve the investment and performance targets one year early then, they will become eligible one-year in advance starting from 2024-25 to 2028-29 i.e. for 5 years. 
   
• The objective of the PLI Scheme is to promote production of MMF Apparel& Fabrics and, Technical Textiles products in the country to enable Textiles Industry to achieve size and scale; to become competitive and a creator of employment opportunities for people.  

• The PLI  Scheme proposes to incentivise the following textile products:  

1. MMF Apparel listed at Annexure-I of the Notification,  
2. MMF Fabrics listed at Annexure-II of the Notification,  
3. Technical Textiles products listed at Annexure-III of the Notification, 
    

• The relevant extract of the products pertaining to the MMF Textiles falling under the purview of the Council is enclosed.
• Turnover of MMF Apparel, Fabrics and products of Technical Textiles will be counted based on product description in GST invoice at 8-digit HS Code.
   
• Detail of the Scheme (Part I & II) is enclosed. 

• Framework Of the Scheme Implementation: 

                                           Scheme Part-1 & Part - 2 

The scheme shall be valid upto 2029-30. The gestation period for both parts of the scheme will be of two years (FY: 2022-23 to FY: 2023-24).  

Please note that the detailed operational guidelines for inviting application, selection of eligible participants, effective monitoring of the scheme, releasing of incentives, and appropriate grievance redressal mechanism etc. will be finalised and notified after inter-ministerial consultations.  

For more detailed information, members may kindly refer to Gazette Notification No. 12015/03/2020-IT dated 24^th September, 2021 issued by the Ministry of Textiles. 

Members may kindly make a note of the above details of the PLI Scheme. 

Thanking you,             

Yours faithfully,              

S. BALARAJU        

EXECUTIVE DIRECTOR