Only manufacturing companies registered in India will be eligible to participate under the recently approved Rs 10,683-crore production-linked incentive (PLI) scheme for the textiles sector, according to a notification of the textiles ministry. Notifying the scheme, the ministry also said that participating companies will have to undertake processing and operation activities in their own factory premises.

It added that the turnover achieved from trading and outsourced job work will not be accounted for while calculating claims for availing the incentive.

The goods which are manufactured by the company registered under the scheme shall only be eligible for the incentives, it said adding goods manufactured by other manufacturers or units of the same group company shall not be accounted for in the calculation of incremental turnover.

“Only manufacturing companies registered in India will be eligible to participate under the scheme,” the notification has said.

Incentives under the scheme will be available for five years during 2025-26 to 2029-30 on incremental turnover achieved during 2024-25 to 2028-29 with a budgetary outlay of Rs 10,683 crore.

However, if a company is able to achieve the investment and performance targets one year early then, they will become eligible one-year in advance starting from 2024-25 to 2028-29, it added.

The scheme proposes to incentivise MMF (man-made fibre) Apparel, MMF Fabrics and 10 segments of Technical Textiles products.

Further, it said that only one company of a group will be allowed to be registered for PLI for Textiles and none of their other group companies will be eligible for participation in this scheme as a second participant.

“However, the group may make more than one application for consideration but they will have to take a decision at the time of selection regarding the proposal they want to take forward in case more than one of their proposals are shortlisted on the basis of transparent selection process,” it added.