The Gujarat Textile Policy 2024-2029, introduced by the Industries and Mines Department, Government of Gujarat, aims to boost investments in the textile sector, promote green practices, and enhance the textile value chain. Effective from October 1, 2024, to September 29, 2029, this policy offers sector-specific financial incentives to support sustainable and competitive growth.
The Capital Subsidy component offers direct financial support to textile units based on location and type of activity, encouraging infrastructure and machinery investments.
Scheme Key Highlights (Short Summary)
• Validity: October 1, 2024 – September 29, 2029
• Target: MSMEs and other industrial units in the textile sector
• Focus: Capital investment in plant, machinery, and infrastructure
• Benefit: Location-based capital subsidy for eligible activities
Benefits
Capital Subsidy Based on Taluka Category and Activity Type:
| Category | Activity 1 (Garments/Apparel/Technical Textiles) | Activity 2 (Weaving, Processing, MMF Spinning etc.) |
|---|---|---|
| Category 1 & PM MITRA Park | 35% of eFCI, up to ₹100 Cr | 20% of eFCI, up to ₹50 Cr |
| Category 2 | 30% of eFCI, up to ₹100 Cr | 18% of eFCI, up to ₹50 Cr |
| Category 3 | 20% of eFCI, up to ₹50 Cr | 10% of eFCI, up to ₹40 Cr |
• Note: Total subsidy from State + Central schemes should not exceed the total term loan disbursed.
Eligible Activities
• Activity 1: Garments, Apparel & Made-ups, Technical Textiles (including Composite Units)
• Activity 2: Weaving (with/without preparatory), Knitting, Dyeing & Processing, Texturizing, Twisting, Embroidery, MMF Spinning (excluding Cotton/Synthetic Filament Yarn spinning)
Eligibility
• The industrial unit must have availed a term loan for the project
• Commercial production must have started before applying for the subsidy
• Application must be submitted within one year from the Date of Commercial Production (DoCP)
• The total capital subsidy (State + Central) should not exceed the sanctioned term loan
Exclusions
• Units whose term loan is sanctioned after one year from DoCP
• Units spinning cotton or synthetic filament yarn
Application Process
Offline
Application for Registration:
• Step 1: Submit application to the Industries Commissioner in the prescribed format
• Step 2: Attach required documents and apply within 1 year from loan disbursement, production start, or policy start date (whichever is later)
• Step 3: Receive Registration Certificate after document verification
Application for Provisional/Final Eligibility Certificate:
• MSME with GFCI ≤ ₹10 Cr: Apply to General Manager, District Industries Center (DIC)
• MSME with GFCI > ₹10 Cr to ≤ ₹50 Cr: Apply to MSME Commissioner
• Other than MSMEs: Apply to Industries Commissioner
• Application must be submitted within 1 year from DoCP or registration certificate date
Documents Required
• Industrial registration documents & IEM (if applicable)
• Legal possession proof of land with NA permission or GIDC allotment
• GPCB “Consent to Establish” (if applicable)
• Detailed Project Report including:
• Executive summary
• Background
• Existing business details (for expansions)
• Land/Shed information
• Raw material & manpower strategy
• Techno-economic viability & financial analysis
• Term loan sanction letter
• Board Resolution/Authority Letter/Power of Attorney
• PAN card (enterprise & authorized person)
• GST registration with annexures
• First sale bill (if production commenced)
• Audit report (prior to expansion)
Frequently Asked Questions (FAQs)
Q: What is the “Gujarat Textile Policy”?
A: A comprehensive policy aimed at developing Gujarat’s textile industry through financial incentives, infrastructure, and sustainability initiatives.
Q: What is the operative period of the policy?
A: October 1, 2024, to September 29, 2029.
Q: What is the purpose of the “Capital Subsidy” component?
A: To support textile units with location-based subsidies on eligible capital investments.
Q: Who can apply for the subsidy?
A: Industrial units in eligible textile activities that have availed a term loan and started production.
Q: What is the maximum capital subsidy amount?
A: Up to ₹100 crore depending on location and activity.
Q: Is subsidy available if the term loan is sanctioned after 1 year of DoCP?
A: No, such units are not eligible.
Q: Can units get both State and Central subsidies?
A: Yes, but the total subsidy cannot exceed the total term loan disbursed.
Q: What is the difference between Provisional and Final Eligibility Certificates?
A: Provisional EC is issued based on projected investment; Final EC is granted after verification of actual investment.
Q: Can Final Eligibility Certificate be applied for directly?
A: No, units must first obtain a Provisional EC and complete investment verification.