Textiles Ministry Notifies
Major Amendments in PLI Scheme for Textiles to Boost MMF and Technical Textiles
Sectors
·
The amendments
underscore the Government's focus on fostering employment and driving Indias leadership
in the global textile market
·
PLI Scheme Application
Portal Opened till 31st December, 2025
Amendments
to PLI Scheme for Textiles (MMF Segment)
Notification No.:
F.No.12014/01/2024-MMF (Part-I)
Issued by: Ministry of Textiles
In continuation of: Notification No.12015/03/2020-IT dated 24.09.2021
The Ministry of Textiles has amended the Production
Linked Incentive (PLI) Scheme for Textiles to address implementation challenges
and expand its coverage.
Key
Amendments
1.
Product Expansion:
Additional MMF Apparel and MMF Fabric items notified (Annexures I & II).
Eligible turnover will be based on products matching specified 8-digit HS
codes.
2.
Application Window:
o
New Applicants: May apply for the newly added
HSN codes in subsequent rounds.
o
Existing Applicants: Allowed
an additional application with fresh investment of at least 15% of the
minimum threshold, eligible for incentives from the current financial year
onward.
3.
Investment Criteria:
o
Part-I: Minimum ₹150 crore
investment.
o
Part-II: Minimum ₹50 crore
investment.
o
Formation of a new company no longer mandatory;
applicants can set up a separate project unit with distinct accounts
under an existing company. Only new investments will qualify.
4.
Turnover Requirement:
From FY 202526, the minimum incremental turnover requirement is reduced
from 25% to 10% from the second performance year onward.
5.
Scheme Duration and Entry:
o
Total fund outlay and duration remain fixed.
o
New entries permitted till FY 202526,
subject to fund availability.
o
Incentives admissible up to FY 202829.
6.
Operational Guidelines:
Detailed guidelines reflecting these changes will be issued separately.
7.
Effective Date:
The amendments take effect immediately upon issuance.
[MoT Notification F.No.12014/01/2024-MMF(Part-I) dated 9
October, 2025]
Amendment to Notification
No.12015/03/2020-IT Dated 24.09.2021
Subject: Production Linked
Incentive (PLI) Scheme for Textiles Amendments and Addition in the Scheme
1.
F.No.12014/01/2024-MMF(Part-I).-In
continuation to Production Linked Incentive Scheme for Textiles vide
Notification No.12015/03/2020-IT Dated 24.09.2021 and amendments issued from
time to time, the following amendments/addition to address the issue related to
genuine hardships arising during the course of implementation of the Scheme:
2. PRODUCT DETAILS
2.1
The Scheme proposes to incentivise additional MMF Apparel items as specified in
Annexure-I and additional MMF Fabrics as specified in Annexure-II. For the
purpose of calculating eligible turnover, only those MMF Apparel and Fabric
products will be considered whose descriptions in the GST Invoice correspond to
the relevant 8-digit HS codes listed in the respective Annexures.
2.2
In all subsequent Rounds of applications, new applicants shall be eligible to
apply for the additional notified HSN codes pertaining to MMF Apparel and MMF
Fabrics, as listed in the relevant Annexures.
2.3
Additional Window for Existing Applicants: An additional application window
shall be introduced for all existing applicants, permitting them to apply with
a fresh investment that is at least 15% of the prescribed minimum threshold
applicable to that segment of the Scheme. Incentives under this provision shall
be extended for production undertaken during the current financial year and on
a prospective basis.
3. SCHEME SEGMENT AND
INCENTIVES
3.1
Scheme Part -I: For all subsequent Rounds of applications, new applicants (i.e.
any person which includes firm/company willing to invest a minimum Rs.150 crore
in Plan 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.
3.2
Scheme Part -II: For all subsequent Rounds of applications, new applicants
(i.e. any person which includes firm/company willing to invest a minimum Rs.50
crore in Plan 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.
3.3
For all the applicants earlier eligibility for participation by forming a
company registered under Companies Act,2013, before commencement of investment
has been removed and is replaced with the condition that an applicant company
shall be required to establish a separate project unit under the existing company
for the purpose of availing the incentive under PLI Scheme and to maintain
distinct books of accounts in order to determine the investment threshold and
turnover. Only new investments made by a company to be considered as eligible
investment for the purpose of the Scheme.
3.4
With effect from FY 202526, the minimum additional incremental turnover
requirement shall be reduced from 25% to 10% starting from the second
performance year and for all subsequent years. This revised threshold shall
apply for the purpose of determining eligibility for incentives beyond Year I
of performance.
3.5
After the Year I of the performance for the subsequent years the minimum
additional incremental turnover of 25% is reduced to 10% from the 2nd
performance year and subsequent years to qualify for the incentive to be made
effective from 2025-26
4. COMMON CONDITIONS FOR
BOTH PARTS OF THE SCHEME
4.1
Fixed Tenure with Conditional Entry Extension: The total fund outgo and
duration of the Scheme shall remain fixed. Subject to availability of funds,
entry of new applicants shall be permitted until FY 202526. This provision
aims to extend the gestation period and facilitate production by addressing operational
hardships. In such cases, incentives shall be admissible for the Scheme period
up to FY 2028 29.
5.
SCHEME GUIDELINES:
5.1
Detailed operational guidelines incorporating the above changes will be issued
in due course.
6. EFFECT:
6.1
This notification shall come into force from the date of issuance.