The second edition of the Production Linked Incentive (PLI) scheme is being finalized.

The scheme for garments, made-ups and home textiles will have lower minimum investment and turnover requirements so as to attract small and medium entities. The incentives on offer may slightly be lower than what was offered under PLI 1. But the scheme would still be attractive. The PLI scheme for textiles (first edition), introduced in 2021, is divided into two parts and is available for the production of manmade fiber fabrics and apparels as well as technical textiles.

The minimum investment requirement for the first part is Rs300 crores with a minimum turnover requirement of Rs600 crores. Investors are entitled to an incentive of 15 per cent of the minimum turnover in the first year, which is to go down by one per cent over the next four years.

Part two requires a minimum investment of Rs100 crores with a minimum turnover requirement of Rs200 crores. The incentive here is lower at 11 per cent in the first year, which is to be reduced by one per cent over the next four years.The second edition of the PLI scheme will be available to cotton items also.