PLI Scheme for Textiles Part 2 2026: 7% to 11% Incentive, Eligibility & How to Apply
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Quick answer
The PLI Scheme for Textiles Part 2 provides financial incentives between 7% and 11% on incremental turnover to enterprises establishing manufacturing facilities for notified MMF apparel, fabrics, and technical textiles. Qualified participants must invest at least ₹100 crore and achieve ₹200 crore turnover in the first performance year. Applications must be completed online through the official portal alongside an application fee of ₹50,000.
At a glance
| Main benefit | 7% to 11% incentive on incremental turnover |
| Ministry / department | Ministry Of Textiles |
| Level | Central Government |
| Application mode | Online |
About the scheme
Introduced by the Ministry of Textiles, the Production Linked Incentive (PLI) Scheme for Textiles Part 2 aims to scale up domestic manufacturing of Man-Made Fibre (MMF) apparel, MMF fabrics, and technical textiles. The programme provides direct turnover-linked financial support over five consecutive performance years to boost global competitiveness and generate employment. Eligible corporate entities must form a new company under the Companies Act, 2013 and satisfy specified investment and value-addition criteria.
Benefits
- Financial incentive paid annually on incremental turnover of notified products manufactured in India for up to 5 consecutive performance years.
- Year 1 incentive rate: 11% on ₹200 crore turnover.
- Year 2 incentive rate: 10% on ₹250 crore turnover.
- Year 3 incentive rate: 9% on ₹312.5 crore turnover.
- Year 4 incentive rate: 8% on ₹390.63 crore turnover.
- Year 5 incentive rate: 7% on ₹488.2 crore turnover.
- Incentive claims processed within 45 days and disbursed within 15 days of approval via Direct Bank Transfer (PFMS).
- Scheme remains operational till 31 March 2030.
Who can apply (eligibility)
- Applicant must be an entity (company, firm, LLP, or trust) incorporated in India.
- Selected applicant must set up a new company under the Companies Act, 2013.
- Must make a minimum investment of ₹100 crore, excluding the cost of land and administrative buildings.
- Must achieve a minimum turnover of ₹200 crore from notified products in the first performance year.
- Must attain at least 25% incremental turnover over the preceding year from Year 2 onwards (incentive capped at 35% growth).
- Must manufacture notified MMF Apparel, MMF Fabrics, or Technical Textiles only.
- Must maintain minimum value addition of 60% (or 30% for processing activities).
- Applicant must hold valid PAN, GST, and DIN credentials.
Who cannot apply
- Applicants that are bankrupt or categorized as defaulters.
- Entities blacklisted by any government department or authority.
- Turnover generated from trading operations or job work is not considered for incentives.
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
- 1Visit the official portal at pli.texmin.gov.in.
- 2Fill out the online registration and scheme application form.
- 3Upload the required business documents and the notarised undertaking.
- 4Pay the non-refundable application fee of ₹50,000 online.
- 5Save the generated acknowledgement slip and Application ID for tracking.
- 6Respond promptly to any clarification or query raised by the Project Management Agency (PMA).
- 7Receive the Letter of Approval upon evaluation and selection by the Selection Committee.
- 8Incorporate the new company, carry out required investments, and achieve the notified turnover targets.
- 9Submit annual incentive claims through the portal for PFMS verification and bank transfer.
Frequently asked questions
What is the minimum investment required under PLI Textiles Part 2?+
Applicants must commit to a minimum investment of ₹100 crore, excluding expenditure on land and administrative buildings.
What is the minimum turnover target for the first year?+
The enterprise must achieve a minimum turnover of ₹200 crore from notified textile products in the first performance year.
What are the incentive rates across the 5 performance years?+
The incentive rate is 11% in Year 1, 10% in Year 2, 9% in Year 3, 8% in Year 4, and 7% in Year 5, based on prescribed turnover tiers.
What products qualify under the Part 2 scheme?+
Only notified MMF Apparel, MMF Fabrics, and Technical Textile products manufactured in India qualify for the scheme.
What is the application fee for PLI Scheme for Textiles Part 2?+
The applicant must pay an online application fee of ₹50,000 during form submission.
What is the mandatory year-on-year growth requirement?+
From the second performance year onwards, participants must register at least 25% incremental turnover growth over the previous year.
Until when is the scheme operational?+
The PLI Scheme for Textiles Part 2 is operational till 31 March 2030.
NaukriZila is not a government website. Apply only on the official portal; never pay anyone to apply for a government scheme. Source: myScheme (Government of India)