PLI Scheme for Textiles Part-1 2026: 11% to 15% Incentive, Eligibility & How to Apply

At a glance

About the scheme

The Production Linked Incentive (PLI) Scheme for Textiles Part-1 is launched by the Ministry of Textiles to boost domestic manufacturing of Man-Made Fibre (MMF) apparel, MMF fabrics, and technical textiles. Managed with the support of a Project Management Agency and monitored by the Empowered Group of Secretaries, the scheme aims to help Indian textile manufacturers achieve global scale, enhance competitiveness, and generate large-scale employment opportunities across the country.

Benefits

• Financial incentive provided on incremental turnover of notified textile products manufactured in India.
• Incentive provided for up to 5 consecutive performance years.
• Year 1 incentive rate: 15% on achieving ₹600 crore turnover.
• Year 2 incentive rate: 14% on achieving ₹750 crore turnover.
• Year 3 incentive rate: 13% on achieving ₹937.5 crore turnover.
• Year 4 incentive rate: 12% on achieving ₹1171.87 crore turnover.
• Year 5 incentive rate: 11% on achieving ₹1464.84 crore turnover.
• Direct Bank Transfer of incentives via the Public Financial Management System (PFMS) on an annual basis.

Who can apply (eligibility)

• Applicant must be a company, firm, LLP, or trust incorporated in India.
• Selected applicant must incorporate a new company under the Companies Act, 2013.
• Must make a minimum investment of ₹300 crore (excluding land and administrative building costs).
• Must achieve a minimum turnover of ₹600 crore in the first performance year.
• Must manufacture only notified MMF apparel, MMF fabrics, or technical textile products.
• Must maintain minimum value addition (60%, or 30% for processing activities).
• Must hold valid PAN, GST, and DIN details.
• Must achieve at least 25% incremental turnover over the previous year from Year 2 onwards (capped at 35% growth for incentives).

Who cannot apply

• Applicants that are bankrupt or loan defaulters are not eligible.
• Applicants blacklisted by any government authority are excluded.
• Turnover generated from pure trading or job work will not be considered.

Documents required

• Online Application Form
• Undertaking (duly signed and notarised)
• Auditor's Certificate
• Chartered Engineer Certificate
• Audited Financial Statements
• GST Invoices
• Quarterly Review Reports (QRRs)
• Consumption and Inventory Register
• Proof of Investment
• Company Incorporation Documents
• PAN, GST, and DIN Details

How to apply

1. 1Visit the official portal at pli.texmin.gov.in.
2. 2Fill in the online application form with the required corporate and manufacturing details.
3. 3Upload all mandatory documents along with the signed and notarised undertaking.
4. 4Pay the non-refundable application fee of ₹50,000 online.
5. 5Note down the Application ID received upon successful submission.
6. 6Respond to any queries raised by the Ministry or the Project Management Agency within the specified timeline.
7. 7Receive the Letter of Approval upon selection by the Selection Committee.
8. 8Set up the unit, commence manufacturing, and meet investment and turnover targets.
9. 9Submit annual incentive claims online for verification and receive disbursal via PFMS.

Frequently asked questions