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Industry Specific - Textiles Central Ministry of Textiles Handlooms (Reservation of Articles for Production) Act, 1985

Ministry of Textiles issues amendments to Production Linked Incentive Scheme for Textiles

10-Oct-2025 | No. 305

The amendments revised eligibility criteria and additional Man-Made Fibre (MMF) Apparel and MMF Fabric items under the scheme. As per the amendment, private entities and new applicants can invest a minimum of 150 crore under Part I or 50 crore under Part II towards plant, machinery, equipment, and civil works (excluding land and building costs) to qualify for incentives. The requirement for setting up a new company has been removed, allowing existing companies to set up a separate project under the same corporate entity with separate accounts. The incremental turnover condition has been reduced from 25% to 10% from the second performance year (FY 2025?26) onwards. The scheme now allows existing applicants to make additional investments of at least 15% of the minimum threshold to avail extended benefits. Applications will remain open till FY 2025-26, and incentives will be available up to FY 2028-29, subject to availability of funds. Please refer to the attached document for more information.

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