The second edition of the production linked incentive (PLI) scheme for textiles may allow some relaxations on the mandatory requirement for applicants to form a new company for production.

The PLI scheme for textiles was introduced in 2021 with an outlay of Rs10,683 crores to promote the production of manmade fiber fabrics and apparels as well as technical textiles. Of the total 67 applications received under the first edition of the scheme, 64 applicants were selected, and letters of approval were sent to 55 selected participants till October 2022. Investments of over Rs1,536 crores have already been made.

While for the first edition of the PLI scheme, the minimum investment requirement andthe turnover requirement was high, these are likely to be brought down considerably for the second edition of the scheme.The minimum investment requirement for getting various levels of incentives is likely to be much lower in the second edition of the PLI scheme. The second edition of the scheme is likely to be available for cotton items as well and not just be restricted to manmade fiber and technical textiles.

However, the incentives offered under the second edition are also likely to be lower than under the first edition.