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Published
Sep 29, 2021
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Textiles Ministry announces only India-based businesses are eligible for PLI scheme

Published
Sep 29, 2021

The Union Ministry of Textiles has issued a notification to clarify that only textile manufacturing businesses registered in India will be eligible for its recently approved production-linked incentive scheme.

The Textiles Ministry has clarified which kinds of businesses are eligible for its PLI scheme


In a bid to focus on boosting domestic production, the Ministry of Textiles’ PLI scheme, approved with a total of Rs 10,683 crore ($1.6 billion), will only be given to businesses committed to producing in India. Businesses applying for the scheme will also need to show that they conduct all processing and operational activities on their own factory premises, ET Bureau reported. 
 
“Only manufacturing companies registered in India will be eligible to participate under the scheme,” said the Ministry of Textiles, the Press Trust of India reported. 

The PLI scheme will also not allow businesses to include turnover accrued from trading or outsourced work in their applications to the initiative. Goods manufactured by other units of the same group company or by other manufacturers will not count in the necessary incremental turnover total for the scheme. If one company in a group business receives benefits from the PLI scheme, no other businesses in the group will be eligible, according to the ministry. 

“However, the group may make more than one application for consideration but they will have to take a decision at the time of selection regarding the proposal they want to take forward in case more than one of their proposals are shortlisted on the basis of transparent selection process,” said the Ministry of Textiles. 
 
The PLI scheme is designed to incentivise the domestic production of man-made fibre textiles and apparel, as well as ten different categories of technical textiles. Incentives as part of the scheme will be available from the 2026 financial year to the 2030 financial year based on incremental turnover from the 2025 financial year to the 2029 financial year. 

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