The Gujarat Textile Policy was introduced by the Industries and Mines Department, Gujarat to boost investments in the textile sector. The policy focuses on strengthening the entire textile value chain, with a particular emphasis on the garments, apparel, and technical textiles industries. The policy also aims to reduce the carbon footprint and promote green growth, making the textile sector globally competitive and environmentally sustainable.
Effective from October 1, 2024, to September 29, 2029, the Capital Subsidy (Fiscal Incentives to Labour Intensive Unit) component provides financial assistance to Labour Intensive Units in the textile sector. This subsidy supports the capital expenditures of these units, incentivizing job creation and industrial growth.
Scheme Key Highlights (Short Summary)
• Launched by: Industries and Mines Department, Gujarat
• Duration: October 1, 2024 – September 29, 2029
• Objective: Provide capital subsidy to Labour Intensive Units in the textile sector to support expansion, modernization, or diversification
• Subsidy: Based on Eligible Fixed Capital Investment (eFCI), with varying percentages depending on the unit’s location
• Employment requirement: 4000 new employees (with 1000 females) for Labour Intensive Units
Benefits
• Subsidy on Capital Investment:
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Activity 1 (Garments, Apparel & Technical Textiles): 35% of eFCI, up to ₹150,00,00,000
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Activity 2 (Weaving, Knitting, Dyeing & Processing, etc.): 25% of eFCI, up to ₹150,00,00,000
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Subsidy for MSMEs: Up to ₹150,00,00,000 based on unit location
• Eligible Activities: Garments, Apparel & Made-ups, Technical Textiles, Weaving, Dyeing & Processing, MMF Spinning
Eligibility
• Micro, Small, and Medium Enterprises (MSMEs)
• The unit must be a Labour Intensive Unit (providing 4000 new jobs, including 1000 females)
• The enterprise must have availing a term loan for the project
• Commercial Production must commence before applying for the subsidy
• Eligible activities include garments, technical textiles, weaving, dyeing, and more
• Subsidy cap: The total subsidy from both State and Central Government should not exceed the total term loan disbursed
Exclusions
• Units not engaging in eligible activities (e.g., spinning of cotton or synthetic filament yarn)
• Power consumption from captive power plants is not eligible
• Existing enterprises not undergoing expansion, diversification, or modernization are not eligible
• Units under revival plans are not eligible
Application Process
Offline
Registration Process:
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Submit an application for registration with the Industries Commissioner in the prescribed format within one year from loan disbursement, production start, or policy operative date
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After verification, the registration certificate will be issued
Provisional/Final Eligibility Certificate:
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MSMEs with GFCI up to ₹10 crore: Submit application to the General Manager, District Industries Center
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MSMEs with GFCI above ₹10 crore and up to ₹50 crore: Submit application to the MSME Commissioner
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Non-MSMEs: Submit application to the Industries Commissioner
Documents Required
• Registration certificate (Udyog Aadhaar or IEM/LOI)
• Land ownership and non-agriculture permission documents
• GPCB Consent (if applicable)
• Detailed Project Report (DPR)
• Term loan sanction letter
• GST registration (if applicable)
• First sale bill (if applicable)
• Audit report (for expansion projects)
• PAN Card of the enterprise and authorized signatories
• Electricity bill
• Board Resolution/Power of Attorney (PoA)
• Self-certified documents (shareholding pattern, rent agreement, etc.)
Frequently Asked Questions (FAQs)
Q: What is the “Gujarat Textile Policy”?
A: A policy introduced to strengthen the textile sector, emphasizing green growth, job creation, and global competitiveness.
Q: What is the objective of the “Capital Subsidy” component?
A: To provide financial assistance to Labour Intensive Units in the textile sector to enhance capital investment and boost employment.
Q: What is the maximum subsidy amount an industrial unit can receive?
A: The subsidy is based on the Eligible Fixed Capital Investment (eFCI), with a cap of ₹150,00,00,000 for eligible activities.
Q: How long will the subsidy be available?
A: The subsidy is available until September 29, 2029, for units meeting the eligibility criteria.
Q: Can an enterprise apply for this subsidy if the term loan is sanctioned after one year from DoCP?
A: No, the subsidy must be applied within one year from the Date of Commercial Production (DoCP).
Q: Is it mandatory for a Labour Intensive Unit to register under the EPF scheme?
A: Yes, the unit must register under the EPF scheme and employ at least 4000 persons, with a minimum of 1000 females.