In an effort to expand industrial participation and support mid-tier manufacturing facilities, the Ministry of Textiles has decided to reopen the online application process for its flagship Production Linked Incentive (PLI) scheme for textiles. Industrial units looking to expand production can submit their applications for Round 4 between 1 November and 31 December. To facilitate broader access across industrial segments, the central administration has adjusted critical operational criteria, effectively making it easier for medium-sized enterprises to participate in the incentive program.
Threshold for Part 2 Halved to Rs 100 Crore
Under the newly revised regulatory framework, the government has reduced the minimum operational revenue requirement for companies applying under the Part 2 category. The revenue baseline has officially been lowered from Rs 200 crore to Rs 100 crore, cutting the financial barrier in half. This policy change directly accommodates MSMEs and mid-sized producers who were previously constrained by the higher revenue requirement. While the turnover rule has seen substantial relaxation, the capital investment threshold for Part 2 remains unchanged, requiring applicant firms to commit at least Rs 50 crore in fresh investments.
Authorities noted that adjusting the revenue requirement is intended to diversify the manufacturing base by drawing in companies that operate with smaller balance sheets but possess technical competence. With the official application portal remaining operational until 31 December, industry participants are expected to leverage the lowered financial ceiling to register their manufacturing projects.
Tenure Extended Up to Fiscal Year 2033-34
Alongside the reduced eligibility bar, the administrative framework provides extended operational runway for businesses selected under the fresh round. For applicants qualifying under Round 4, the overall scheme tenure will run through Financial Year 2033-34. Officials stated that this extended implementation horizon is designed to give industrial houses enough time to systematically deploy capital, acquire machinery, and stabilize operational scale as their physical production units grow over the coming years.
Targeted Push for Technical Textiles and MMF Fabrics
The dedicated incentive architecture directs public financial backing specifically toward high-value manufacturing segments. The core focus areas include Man-Made Fibre (MMF) apparel, MMF fabrics, and specialized technical textiles. Through targeted policy incentives, the framework seeks to build substantial domestic manufacturing volume, inject modern technology, draw long-term domestic and foreign capital, generate industrial employment, and elevate the national manufacturing footprint across international textile value chains.
Migration Allowed for Applicants from Earlier Rounds
The administration has also outlined a flexible provision for existing participants from prior application phases. Manufacturing units that applied under Round 1, Round 2, or Round 3 are permitted to transition into Round 4. This migration facility is exclusively open to enterprises that have not yet claimed or collected incentive disbursements under any segment of the policy. To transition successfully, companies must formally withdraw their active applications from previous iterations before reapplying under the updated Round 4 guidelines.
