PLI Scheme for Textiles Part 2 — Turnover-Linked Incentives up to ₹140 Cr — Frequently Asked Questions

It is a Production Linked Incentive programme launched by the Ministry of Textiles, Government of India. It pays cash incentives to companies that invest in and manufacture notified products in MMF Apparel, MMF Fabrics and Technical Textiles. The Ministry handles implementation, a Project Management Agency (PMA) supports operations, and an Empowered Group of Secretaries (EGoS) gives strategic direction. It forms one of two components of the textiles PLI, alongside Part-1.

The payout depends on the turnover you achieve. Year 1 pays 11% on ₹200 crore turnover, which works out to ₹22 crore. Year 2 pays 10% on ₹250 crore (₹25 crore), Year 3 pays 9% on ₹312.5 crore (₹28.125 crore), Year 4 pays 8% on ₹390.63 crore (₹31.2504 crore), and Year 5 pays 7% on ₹488.2 crore (₹34.174 crore). Over the five performance years, the total can reach up to ₹140 crore.

There is no fixed closing date. Applications are accepted on a rolling, always-open basis, and the scheme stays operational until March 31, 2030. Incentives themselves are available for a maximum of five consecutive performance years once you qualify and meet the conditions.

You need to set up a new company under the Companies Act, 2013, and the applicant can be a company, firm, LLP or trust incorporated in India. A minimum investment of ₹100 crore is required, excluding land and administrative building costs, and the first performance year must generate at least ₹200 crore in turnover. Manufacturing has to be limited to the notified textile products, and a minimum value addition of 60% must be maintained (30% for processing activities). PAN, GST registration and DIN are also required.

Coverage is limited to three segments: MMF Apparel, MMF Fabrics and Technical Textiles. The manufacturing activity must focus solely on the notified products notified under the scheme — other textile lines are outside its scope.

No. This is a subsidy-style incentive, not an equity investment. The support reaches you as a cash payout made by Direct Bank Transfer through the Public Financial Management System (PFMS) once your claim has been verified and approved, so no stake in your business changes hands.

Applicants must hold PAN, GST registration and DIN. Along with the online application form, you upload the required documents and a signed undertaking as specified in the application, and pay an application fee of ₹50,000 online. Any queries raised by the Ministry or the Project Management Agency must be answered within the prescribed time frame.

Applications are submitted through the official portal at http://PLI.texmin.gov.in, where the scheme notifications are also published. The sequence is: fill the online application form, upload documents and the signed undertaking, pay the ₹50,000 application fee, and receive an acknowledgement containing a unique Application ID. After evaluation by the Selection Committee, selected applicants get a Letter of Approval, commence manufacturing, meet their investment and turnover targets, file annual claims online, and receive the disbursed incentive in their registered bank account.

Claims are made and settled annually. Once a claim is submitted online it is processed within 45 days, and the amount is disbursed within 15 days of approval by the competent authority. Payment goes directly to the participant's registered bank account via Direct Bank Transfer through PFMS, and remains available for five consecutive performance years provided all eligibility conditions and turnover targets are met.

The first performance year requires a minimum of ₹200 crore in turnover, and from Year 2 onwards participants must demonstrate 25% incremental turnover over the previous year. That is why the turnover levels in the incentive structure rise to ₹250 crore, ₹312.5 crore, ₹390.63 crore and ₹488.2 crore across the following years.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for PLI Scheme for Textiles Part 2 — Turnover-Linked Incentives up to ₹140 Cr, though having it can strengthen your application and unlock other benefits.

PLI Scheme for Textiles Part 2 — Turnover-Linked Incentives up to ₹140 Cr is offered by Ministry of Textiles, a government body. It is provided as non-dilutive funding.

Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.