The Ministry of Textiles will reopen applications for the Production Linked Incentive Scheme for Textiles under a fourth round from 1 November to 31 December 2026. The round covers man-made fibre apparel, man-made fibre fabrics and technical textiles, according to a PIB release published on 28 October.
The ministry has reduced the minimum turnover requirement for the scheme's Part 2 category to ₹100 crore from ₹200 crore. It said the change is intended to widen participation by MSMEs and mid-sized manufacturing companies.
Application window runs for two months
Eligible companies can submit applications through the ministry's online PLI portal between 1 November and 31 December. Applicants remain subject to the scheme guidelines and must complete submissions within the announced window.
The release describes the fourth round as supporting new investment, domestic manufacturing, employment and India's participation in global textile value chains. It did not announce approvals or incentive awards at the application-opening stage.
Part 2 threshold falls to ₹100 crore
The lower turnover criterion applies specifically to Part 2 of the scheme. Reducing the threshold by half expands the pool of businesses able to seek participation, but it does not by itself establish eligibility under every other scheme condition.
Prospective applicants will need to assess the applicable investment, product, performance and documentation requirements in the detailed guidelines. The covered product areas remain MMF apparel, MMF fabrics and technical textiles.
Round 4 tenure extends to FY2033–34
Companies approved in the fourth round will receive an extended scheme horizon through FY2033–34. The ministry said the longer period is designed to give those applicants additional time to establish and scale manufacturing capacity.
The extension is exclusive to Round 4 approvals. It provides a longer operating horizon but does not guarantee incentives without approval and subsequent compliance with performance conditions.
Existing participants may migrate
Companies participating under Rounds 1, 2 or 3 that have not claimed or received any incentive may apply to migrate to Round 4. Migration requires withdrawal of the existing application under the earlier round, as applicable.
This option creates a decision between retaining the existing approval path and seeking the modified Round 4 framework. Companies must evaluate the consequences before withdrawing an earlier application.
Key numbers
- Application opening: 1 November 2026
- Application closing: 31 December 2026
- Revised Part 2 turnover threshold: ₹100 crore
- Previous threshold: ₹200 crore
- Extended tenure for Round 4: through FY2033–34
What boards and CFOs should note
- Does the applicant meet all product, investment and performance conditions beyond the revised turnover threshold?
- How does the extended tenure affect project phasing, capacity ramp-up and incentive forecasts?
- For existing participants, what rights or timing advantages may be lost when an earlier application is withdrawn?
Source: PIB, 28 October 2026. This is a summary of an official release, published as general information. It is not legal, tax or investment advice.
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