The recent notification by textile ministry says, only registered manufacturing companies can avail the benefits of the recently approved Rs 10,683-crore production-linked incentive (PLI) scheme for the textiles sector. For this, the participating companies will have to undertake processing and operation activities in their own factory premises, it adds. The notification further says the turnover achieved from trading and outsourced job work will not be accounted for while calculating claims for availing the incentive.

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

The scheme proposes to incentivize MMF (man-made fiber) apparel, MMF fabrics and 10 segments of technical textiles products.

Further, the notification says, 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.