How to Apply for the PLI Scheme for Manufacturing Textiles in India?

The Production-Linked Incentive (PLI) scheme for textiles is an initiative introduced by the government of India to boost the manufacturing and export capabilities of the textile industry. With a focus on manmade fibre (MMF) apparel, MMF fabrics, and products of technical textiles, the scheme aims to enhance India's position as a global leader in textile production. By providing financial incentives and support to eligible companies, the PLI scheme encourages investment, promotes competitiveness, and creates employment opportunities. This scheme plays a crucial role in driving the growth and development of the textile sector in India, contributing to the country's overall economic progress.


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Why apply for the PLI scheme?

Apart from providing significant financial incentives to eligible manufacturers, to help offset the costs of infrastructure development, technology adoption, and production enhancements; recipients of the Production Linked Incentive (PLI) scheme for textiles in India can benefit from a range of other advantages and opportunities.

• The scheme encourages companies to invest in plant, machinery, equipment, and civil works to enhance their manufacturing capabilities. This investment contributes to the expansion and modernisation of the textile industry.
• By supporting the production of manmade fibre apparel, MMF fabrics, and technical textiles, the scheme helps recipient companies become globally competitive. This enables them to tap into international markets and increase their exports.
• In order to be eligible for incentives, companies are required to engage in the manufacturing and sale of products within the specified categories of MMF and technical textiles. This criterion serves as an incentive for promoting innovation and the creation of new, advanced textile products.
• The scheme emphasizes the production of technical textiles, which includes products that cater to sectors like healthcare, infrastructure, and environmental protection. This focus promotes sustainable practices and contributes to the overall sustainability goals of the textile industry.
• The scheme encourages recipient companies to increase their production and sales, which leads to market expansion. With financial incentives and support, companies can explore new domestic and international markets, thereby widening their customer base and revenue streams.
• The scheme encourages collaboration between textile companies, research institutions, and other stakeholders. This collaboration leads to knowledge sharing, technology transfer, and innovation-driven partnerships, strengthening the overall competitiveness of the textile industry.

What are some Key Obligations as a Recipient?

Under the PLI Scheme, the manufacturers are expected to fulfil certain obligations in order to remain eligible for complete benefits of the scheme and avoid penalties which may also impact the company’s reputation.

• Recipients are required to invest a minimum amount in plant, machinery, equipment, and civil works as specified by the scheme. This investment demonstrates the commitment to expanding and modernizing the textile manufacturing infrastructure.
• To be eligible for incentives, recipients must achieve a minimum turnover threshold by manufacturing and selling the notified products under the scheme. This encourages recipients to focus on increasing their production and sales to meet the specified targets.
• Recipients are required to submit periodic reports and documentation related to their investment, production, and turnover. Timely and accurate reporting is crucial for monitoring and evaluation purposes, ensuring transparency and accountability in the implementation of the scheme.
• Recipients must comply with all relevant laws, regulations, and quality standards pertaining to the textile industry. This includes adhering to environmental regulations, labour laws, product safety standards, and other industry-specific requirements.
• The incentives provided under the scheme are applicable only to sales transactions conducted through normal banking channels. Recipients need to ensure that all eligible sales are accounted for and conducted in a transparent manner.
• Recipients must maintain proper records and documentation related to their investment, production, sales, and other relevant aspects. These records may be subject to audit and verification by designated authorities to ensure compliance with the scheme's requirements.
• Recipients may be subject to monitoring and evaluation by the implementing agencies to assess their performance and progress in meeting the scheme's objectives. Cooperation with monitoring activities and providing accurate information is essential.

How to Pitch for the Scheme?

A manufacturer may need to provide a convincing pitch to the authorities in order to enjoy the benefits of the PLI scheme for the Textiles Industry in India. Here are some essential steps to pitch for the PLI scheme:

• Research the PLI scheme for Textile Industry: Before you pitch for the PLI scheme, make sure to understand the objectives, requirements and eligibility of the scheme.
• Highlight your company's capabilities: It is important to highlight your company's experience, expertise, and capabilities in the field of Textiles. It is important to share the company's track record, production capacity, and quality standards to demonstrate your ability to meet the production targets under the PLI scheme
• Present your investment and production plans: The PLI scheme for the Textiles Industry is designed to encourage investments in its manufacturing in India. Therefore, clearly presenting investment plans, including the amount of investment, the sources of funding, and the timeline for investment is necessary. Also, a clear outline of the production plans and plan to achieve the targets can be beneficial.
• Emphasise the benefits of the PLI scheme: Highlighting the benefits of the PLI scheme for the Textiles Industry and how it will help you scale up your manufacturing operations is important.

Process of Application and Disbursement of Incentives

The Production-Linked Incentive (PLI) scheme for  is an initiative by the Indian government to promote manufacturing in India. To apply for the PLI scheme for the Textiles Industry, an eligible manufacturer may follow the following steps-

• Register on the PLI portal: You can visit the PLI portal (https://pli-eda.gov.in/) and create an account by providing your basic details.
• Fill in the application form: The application form may require you to provide details such as your company name, address, production targets, investment plans, etc.
• Upload the required documents: You may also need to upload certain documents such as company registration certificate, PAN card, GST registration, etc.
• Submit the application: After filling in the application form and uploading the required documents, you can submit your application for the PLI scheme for textiles.
• Wait for approval: Once you have submitted your application, it will be reviewed by the PMA. If your application is approved, the incentives shall disburse after completion of all pre-disbursal formalities.

In conclusion, the Production-Linked Incentive (PLI) scheme for textiles offers significant benefits and opportunities for the growth and development of the textile industry in India. By incentivising investment, production, and sales in the notified lines of MMF apparel, MMF fabrics, and technical textiles, the scheme aims to enhance manufacturing capabilities, promote competitiveness, and create employment opportunities. The scheme provides financial incentives to eligible recipients based on their investment and turnover targets, encouraging them to expand and modernize their infrastructure, increase production, and achieve economies of scale.

This, in turn, will contribute to the overall growth and global competitiveness of the Indian textile industry. Moreover, the PLI scheme encourages recipients to comply with regulations, maintain transparency in transactions, and adopt responsible business practices. It promotes the use of normal banking channels for sales transactions, ensuring transparency and accountability. By leveraging the benefits of the PLI scheme, recipients have the opportunity to enhance their market position, increase profitability, and contribute to the overall growth of the textile sector.

The scheme's focus on technical textiles also encourages innovation and diversification, opening up new avenues for growth and market expansion. Overall, the PLI scheme for textiles plays a crucial role in driving the development of the textile industry, attracting investments, creating employment opportunities, and positioning India as a global textile manufacturing hub.