Certain flexibilities may be provided to investors under the production linked incentive (PLI) scheme for the manmade fiber and technical textiles sectors to help them meet the strict timelines for achieving the mandatory prescribed minimum annual turnover. The idea is to ensure the industry does not miss incentives due to genuine problems they may encounter in their business activities.
Under the scheme, if participants fail to achieve the prescribed minimum net incremental turnover for any given year, they will not be eligible for claiming incentive for that particular year. They will only be eligible for benefits in the remaining years of the five-year block.
Benefits under the PLI scheme are to be provided for five years from 2025-26 to 2029-30 on incremental turnover achieved during 2024-25 to 2028-29. As per part one of the scheme, beneficiaries need to invest a minimum of Rs 300 crores in plant, machinery, equipment etc. They will earn an incentive of 15 per cent of turnover the first year and thereafter one per cent lower every year for the next four years. In the second part, the minimum investment limit is lower at Rs 100 crores, while incentives, too, are lower, starting at 11 per cent in the first year and getting reduced by one per cent each year in the four subsequent years.