Textiles PLI Reopens 1 November: Part 2 Minimum Turnover Cut to ₹100 Crore

The Ministry of Textiles will reopen the application portal for Round 4 of the Production Linked Incentive (PLI) Scheme for Textiles from 1 November to 31 December. It has also cut the minimum turnover required under Part 2 of the scheme from ₹200 crore to ₹100 crore, and extended the scheme's tenure to FY 2033-34 for companies approved under Round 4. The announcement came in an official statement on 28 October.

If you run, or plan to set up, a manufacturing business in man-made fibre apparel, fabrics or technical textiles, this is the news to read closely. It is also a good example of why you should separate what has been announced from what has not. Below is a plain summary of what The Economic Times, GoodReturns (PTI) and GKToday reported, with the gaps marked clearly, so you can decide quickly whether to look further.

What has changed

• The window is open again. The application portal reopens from 1 November to 31 December. GKToday gives the year as 2026.
• Part 2 needs less turnover. The minimum turnover under Part 2 drops from ₹200 crore to ₹100 crore.
• Investment is unchanged. The minimum investment under Part 2 stays at ₹50 crore.
• The tenure is longer, for some. The scheme now runs to FY 2033-34 for companies approved under Round 4.

According to The Economic Times, the scheme was originally set to run until 2029-30. The same paper had earlier reported a proposed extension of four years. The other two reports do not mention the original end date.

Who this is aimed at

Round 4 is open to companies investing in three segments:

• Man-made fibre (MMF) apparel
• MMF fabrics
• Technical textiles

The reports say the turnover change is meant to let more MSMEs and mid-sized manufacturers apply. The Economic Times describes Part 2 as the part of the scheme for manufacturers with lower investment commitments. That is why the turnover cut matters most for smaller units: the entry bar under Part 2 is now lower than it was.

None of the reports says that startups are a separate category, or that any special eligibility applies to them. If you are a young manufacturing company, the relevant question is simply whether you fit Part 2 and the three segments above.

Why the longer tenure matters

The ministry said the longer tenure gives these applicants more time to invest and to scale up their manufacturing capacity. In practice, a manufacturer planning a plant or a line has a longer horizon to build, ramp up and operate under the scheme. Note the condition: the extension to FY 2033-34 is reported for companies approved under Round 4, not for everyone in the scheme.

If you applied in an earlier round

Per GoodReturns (PTI) and GKToday, companies in Rounds 1, 2 and 3 may move to Round 4, but only if they have neither claimed nor received an incentive. They must first withdraw their existing applications before migrating. Withdrawal comes first, so think carefully before you do it.

What the reports do not say

Several details a founder would normally want have not been given in the reports we reviewed:

• The Part 1 thresholds
• The incentive rates
• Any caps on incentives
• The total outlay for the scheme or for this round
• A step-by-step application procedure

We have not filled these gaps and you should not assume them. The reports also do not say whose turnover is counted for the Part 2 threshold, so check that against the official scheme document before you rely on it.

What this means for you

• Mark the dates. The window runs from 1 November to 31 December. Give yourself time, because a plant plan and supporting numbers take longer to assemble than a form.
• Check your segment. Only MMF apparel, MMF fabrics and technical textiles are named for Round 4. If your product sits outside these, this round is not for you.
• Test yourself against Part 2. Compare your turnover with the new ₹100 crore minimum and your planned investment with the ₹50 crore minimum. Those are the two Part 2 minimums the reports give.
• Read the official scheme guidelines before you apply. Since the reports give no incentive rates, caps or procedure, use the scheme's official application portal and the ministry's own documents for those details, and treat anything else with caution.
• If you are in Rounds 1, 2 or 3, work out whether you have claimed or received any incentive before you think about migrating, and remember that you must withdraw first.

We will update this post if the ministry publishes the missing details.

Sources: The Economic Times; GoodReturns (PTI); GKToday.

Cover photo: Tanusree Mitra on Unsplash