New Delhi: The Ministry of Textiles has announced major amendments to the Production Linked Incentive (PLI) scheme for Man-Made Fibre (MMF) apparel, MMF fabrics and technical textiles. Through this decision, the ministry aims to enhance industry participation, simplify the procedure and accelerate growth.
The revised guidelines, now notified by the ministry, are designed to address long-standing industry challenges, promote ease of doing business and encourage fresh investments.
Under the newly updated framework, the textile ministry has expanded the list of eligible products, adding wight new HSN codes for MMF apparel and nine for MMF fabrics. Companies will no longer need to set up entirely new entities to participate, as project units can now be established within existing firms.
It should be noted that the minimum investment threshold has been reduced from Rs 300 crore to Rs 150 crore in the Part-1 category and from Rs 100 crore to Rs 50 crore in the Part-2 category, effective from 1 August.
Similarly, the incremental turnover requirement to qualify for incentives has been brought down from 25 per cent to 10 per cent from FY 2025-26 onwards, lowering entry barriers for new players.
Furthermore, the ministry has also extended the application for the PLI scheme until 31 December this year. It is understood that this move will attract greater industry response. The focus has been to establish India as the global hub for textile innovation, manufacturing and employment generation.
According to the ministry, these reforms will also streamline the approval process and facilitate faster project implementation under the PLI scheme.
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