The Ministry of Textiles is planning to reopen applications under its Rs 10,683 crore Production Linked Incentive (PLI) scheme for Man-Made Fibre (MMF) apparel, MMF fabrics and technical textiles with relaxed investment and turnover criteria. The revised norms, which include lower investment thresholds of Rs 100 crore and Rs 150 crore, are aimed at encouraging wider industry participation and accelerating domestic manufacturing in segments where India competes with global players such as China and Vietnam, according to Textiles Minister Giriraj Singh.
The Ministry is considering opening a fresh application window to enable more companies to benefit from the revised eligibility criteria, with strong participation already being witnessed from Madhya Pradesh and southern India.
The scheme has completed three rounds of applications so far, with the third round closing in March this year. Following the approval of 22 new applicants under the latest round, a total of 96 companies have been selected under the scheme, with cumulative committed investments of Rs 12,822.67 crore and a projected turnover of Rs 58,294.18 crore.
Launched in 2021, the PLI scheme is aimed at boosting domestic manufacturing in these focus segments. However, incentive disbursements have remained limited so far, with only Rs 54 crore provisionally disbursed to two applicants that achieved the required investment and sales targets in FY 2024-25, as most approved projects are still in the implementation or production ramp-up phase.
Giriraj Singh said the initial rollout was affected by pandemic-related disruptions, but the pace of implementation has since improved and the approved manufacturing units are expected to become fully operational by 2027.
The Ministry, however, will continue to focus on MMF and technical textiles, while the earlier proposal to expand the scheme to include cotton and other apparel segments has been dropped.
