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Production Linked Incentive Scheme for Textiles (PLIT)

Updated: Sep 29


The Government has approved the Production Linked Incentive (PLI) Scheme for promotion of MMF Apparel, MMF Fabrics and Products of Technical Textiles. The scheme will be implemented from the date of this notification. 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. 10,683crore. 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


Production Details:

The scheme proposes to incentivise MMF Apparel listed at Annexure-I, MMF Fabrics listed at Annexure-II and 10 segments of Technical Textiles products listed at Annexure-III. 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


Check the list of 8-digit HS Code for Claim under this policies:


https://docs.google.com/spreadsheets/d/1vfHAkNPHXwmyv8eT-2gK7QOjddTDyjIaTpYd1HRIfXo/edit?usp=sharing


There is two part of scheme:


Part - I

Minimum Investment: 300 Cr

Minimum Turnover to Achieve: 600 Cr

Year

Gestation Period

Performance Year

Additional Incremental Turnover

Incentive Claim Year

Incentive Percentage

*

FY 2022-23

*

FY 2023-24

1

FY 2024-25

25%

FY 2025-26

15%

2

FY 2025-26

25%

FY 2026-27

14%

3

FY 2026-27

25%

FY 2027-28

13%

4

FY 2027-28

25%

FY 2028-29

12%

5

FY 2028-29

25%

FY 2029-30

11%

Part - II

Minimum Investment: 100 Cr

Minimum Turnover to Achieve: 200 Cr

Year

Gestation Period

Performance Year

Additional Incremental Turnover

Incentive Claim Year

Incentive Percentage

*

FY 2022-23

*

FY 2023-24

1

FY 2024-25

25%

FY 2025-26

11%

2

FY 2025-26

25%

FY 2026-27

10%

3

FY 2026-27

25%

FY 2027-28

9%

4

FY 2027-28

25%

FY 2028-29

8%

5

FY 2028-29

25%

FY 2029-30

7%



In addition, priority will be given for investment in Aspirational Districts, Tier 3, Tier 4 towns, and rural areas and due to this priority Industry will be incentivized to move to backward area. This scheme will positively impact especially States like Gujarat, UP, Maharashtra, Tamilnadu, Punjab, AP, Telangana, Odisha etc.


It is estimated that over the period of five years, the PLI Scheme for Textiles will lead to fresh investment of more than Rs.19,000 crore, cumulative turnover of over Rs.3 lakh crore will be achieved under this scheme and, will create additional employment opportunities of more than 7.5 lakh jobs in this sector and several lakhs more for supporting activities. The textiles industry predominantly employs women, therefore, the scheme will empower women and increase their participation in formal economy.


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