Textile PLI Scheme May Get Four-Year Extension to Expand MSME Participation
Proposed changes could ease eligibility requirements for micro, small and medium enterprises and provide another opportunity for applicants who missed out in earlier rounds.
The Production Linked Incentive (PLI) Scheme for textiles is likely to be extended by around four years, with revised eligibility criteria aimed at encouraging greater participation from micro, small and medium enterprises (MSMEs), according to people aware of the development.
The proposed extension would mark the scheme’s fourth round. The government is also considering changes to make the programme more industry-friendly and improve its overall effectiveness.
Proposed Extension and Eligibility Changes
The existing PLI Scheme for textiles is operational until 2029-30. The proposed extension would provide another opportunity for applicants who were not selected in previous rounds to qualify for incentives.
The government is considering changes to the eligibility criteria to make the scheme more accessible to MSMEs. These include lowering the minimum investment and turnover thresholds, according to an official.
PLI Scheme for Textiles: Investment and Timeline
Approved in September 2021 with an outlay of ₹10,683 crore, the PLI Scheme for textiles provides for a two-year gestation period from FY22 to FY24, followed by five performance years from FY25 to FY29. The scheme remains operational until FY30.
It aims to encourage large-scale manufacturing of man-made fibre (MMF) apparel, MMF fabrics and technical textiles, while strengthening India’s competitiveness in global textile value chains.
170 Applicants Approved in the First Three Rounds
The government has approved 170 applicants across the first three rounds of the scheme. Applicants who were left out previously may receive another opportunity to qualify if the proposed fourth round proceeds.
Among the approved applicants, Gujarat accounted for 46, followed by Maharashtra with 27 and Madhya Pradesh with 23.