Venkat,
Yes, there is a mechanism. In fact it's there by default. The key setting you are looking for is in the plugin-cfg.xml and it's the RefreshInterval. It enables the HTTPServer to implement updated plugin-cfg.xml without a restart.
The RefreshInterval specifies the time interval, in seconds, at which the plug-in checks the configuration file to see if updates or changes have occurred. The plug-in checks the file for any modifications that have occurred since the last time the plug-in configuration was loaded. There is even a mechanism for using the old one if the new one is invalid for some reason.
The plug-in configuration works within the process scope. That is to say, for a multi-threaded Web server like IBM HTTP Server 2.0.x, if one thread within a process detects that the plugin-cfg.xml has been modified and reloads it, the new configuration will be used by all the other threads for all the new requests.
However, for all the requests that are being processed by the plug-in, the old configuration is still used until the requests have been served. In other words, a plugin-cfg.xml reload will not affect the existing active requests.
Note that the 'generation of the new plugin' is a different matter entirely.
https://www.ibm.com/support/knowledgecenter/SSAW57_9.0.0/com.ibm.websphere.nd.multiplatform.doc/ae/rwsv_plugincfg.html#rwsv_plugincfg__RefreshInterval
Hope this help.
Fearo