PLI scheme of GOVT for textile 2022

1. OPERATIONAL GUIDELINE FOR PRODUCTION LINKED INCENTIVE
FOR TEXTILIE FOR PROMOTING MANMADE FIBRE
The scheme was passed on 24 Sept 2021,
OBJECTIVE:
To achieve size and scale in production and exports.
To be globally competitive
To be creator of employment.
This is a financial incentive for businesses to promote Man Made
clothing, fabrics, and technical textiles.
The scheme is implemented via DPITI, NITI aayog, Dept of
commerce, Dept of expenditure, Dept of revenue, Export
Promotion council and Trade bodies.
 Total outlay: 10683 crores.
 Incentive period: 24 Sept 2021 to 31 March 2030,
incentive is payable only for 5 years.
For any project which is availing the benefits of this scheme
following things are applicable,
 Gestation period: 2 years (2022-2024)
 Performance years: 5 years (2024 – 2029)
 Incentive claim years: 5 years (2025-2030)
The scheme applies in two ways to any corporation that
establishes a separate manufacturing company to produce a
notified product.
 Scheme 1:
 Investing minimum 300 crore
 To achieve 600 crore turnover in first performance year.

2.  Scheme 2:
 Investing minimum 100 crore
 Achieve 200 crore turnover in first performance year.
The incentive is applicable thereafter to every next year with
prescribed increment of 25% on turnover from preceding year
with maximum cap of 35%.
If the targets are not met in any given year then it will be
applicable to subsequent years till the scheme year period ends.
Any approved applicant has to take care of following details,
 Approved applicant will have to form new company before
commencement of investment.
 Investment in anticipation of the scheme approval will also be
accounted.
 There will be no restriction on higher investment to reach the
stipulated target of turnover.
 Only 1 project under PLI scheme will be approved for any
group of companies.
 The new establishment will only produce declared notified
product.
 Same product produced by other subsidiary will not be
considered in turnover.

3.  Scheme allows the applicant to avail other Government
benefits like duty exemption, duty remission etc.
 On despatch “MADE IN INDIA” tag is to be attached to each
product.
 Maintain details of all the data monitored during the
production for minimum 5 years or till government audit
whichever is later of the incentive year.
 Plant and machinery should be purchased in the name of
applicant, and same shall be used for production of
notified product and is allowed to manufacture other
products too.
 Applicant may establish more than 1 unit for production
with letter of intent.
 Investment of only 10% of the total project for R&D will be
accounted in eligibility.
 Quality of the notified product has to be maintained by the
company and if required MoT can ask for reports or may
get the product tested from Internally accredited lab.

4. Investment of the company will be considered us under:
 Building and construction: plant, machinery, erection, commissioning,
associated utilities like captive generation, effluent treatment plant,
water and power supply systems, this also include IT related services
like servers, software ERP etc.
 Usage of existing utilities will be allowed but only fresh investment with
intent to use in manufacturing of notified product will be eligible under
scheme.
 Office and guest house will not be considered as investment.
 Expenditure and consumable raw material will not be considered in
investment.
 The company has to employ new machineries, no second hand/used
machinery will be considered valid for the threshold investment under
the scheme.
Criteria for selection:
Financial capacity of applicant
Relevant experience and technological capacity
Location of manufacturing activity
Investment
Additional direct employment in 1st performance year.
Product line from notified product.
Captive consumption of notified products in group companies will be
accounted for calculation for incentives though GST invoices.
Lowest Sale price of notified product will be considered to determine the
value of transaction when sold to group company or non-group
company.
Applicant has to submit claim for incentive on yearly basis via statuary
auditor of company.
It is possible for change in ownership with due consent from MoT and its
applicable conditions.
Risk management system will be detailed out and inspected by MoT on
random basis.

5. Notified products list as declared by MoT (Ministry of
Textile),
KNIT:
 Jersey, Pullovers, Cardigans, Waist Coat all from Man
Made fibre
 Anorak, Wind Cheaters, Wind Jackets, Trousers, Bibs from
synthetic fibres
 Overall Breeches, Over Coat, Rain Coat, Car Coat, Capes
 Girls Dress material knitted, Stockings, Socks, Blazers,
Swim wear
 Sports Garments, Under Garments, Track Suits, Skirts,
Shirts
 Night Dresses, Scarves, Mufflers, Gloves, Mittens, Babies
garment.
WOVEN:
More than 85% textured polyester filament, dyed warp
knit with 85% polyester fibre.
For fabrics lower than 85% polyester, Viscose and nylon is
advised.
TECHNOLOGICAL TEXTILE:
 Geo Grids, Nets, Agro Textile, Medical Textile, Defence
Textile, Automobile Textile, Protective clothing, Building
construction, speciality fibre, smart textile with
embedded tech.