The Gujarat Textile Policy is an umbrella scheme introduced by the Industries and Mines Department, Gujarat. It aims at augmenting investments in the textile sector and strengthening the textile value chain across each sub-sector, while also focusing on strengthening the garments and apparel as well as technical textiles industry. Effective from October 1st, 2024 to September 29th, 2029, this initiative focuses on reducing the carbon footprint and promoting green growth, thereby making the sector globally competitive and environmentally sustainable.
The component “Interest Subsidy” provides financial assistance in the form of a credit-linked interest subsidy for eligible industrial activities. This subsidy helps reduce the financial burden on industrial units by reimbursing a portion of the interest paid on term loans for Gross Fixed Capital Investment.
Benefits
Financial Assistance:
| Category of Taluka | Activity 1 | Activity 2 |
| Category 1 & PM MITRA Park | 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum | 7% on Term Loan for 7 years; Maximum 2% of eFCI per annum |
| Category 2 | 7% on Term Loan for 8 years; Maximum 2.5% of eFCI per annum | 7% on Term Loan for 7 years; Maximum 2% of eFCI per annum |
| Category 3 | 5% on Term Loan for 6 years; Maximum 2% of eFCI per annum | 7% on Term Loan for 5 years; Maximum 2% of eFCI per annum |
Eligibility
• Industrial units must have taken a sanctioned term loan for Gross Fixed Capital Investment
• Loan disbursement date must be on or after 01/01/2024 for units under implementation as of 01/10/2024
• Must apply within one year from the Date of Commercial Production (DoCP)
• Must be in regular repayment of installments and interest
• Unit must bear at least 2% interest on the term loan
Eligible Activities
Activity 1
• Garments
• Apparel & Made-ups
• Technical Textiles (including Composite Units)
Activity 2
• Weaving (with/without preparatory)
• Knitting
• Dyeing & Processing
• Texturising
• Twisting
• Embroidery
• MMF Spinning from PSF/VSF
(Excludes Spinning of Cotton and Synthetic Filament Yarn)
Application Process
Offline
Application for Registration
Step 1: Submit application to the Industries Commissioner in prescribed format within one year from loan disbursement, production start, or policy operative date
Step 2: Upon scrutiny and document verification, a registration certificate will be issued
Application for Provisional/Final Eligibility Certificate
MSME Units with GFCI up to ₹10 Crore: Apply to General Manager, District Industries Center
MSME Units with GFCI ₹10–₹50 Crore: Apply to MSME Commissioner
Other than MSMEs: Apply to Industries Commissioner
Documents Required
• Registration certificate under applicable law
• Industrial Entrepreneur Memorandum
• Legal possession of land and NA permission
• Lease or rent deed, or GIDC possession letter
• Consent to Establish from GPCB (if applicable)
• Detailed Project Report
• Term loan sanction letter
• Board Resolution / PoA
• PAN Card of enterprise and authorized person
• GST Registration
• First Sale Bill (if production commenced)
• Audit Report before expansion
Frequently Asked Questions (FAQs)
Q: What is the Gujarat Textile Policy?
A: A five-year industrial policy to boost textile investments and employment in Gujarat
Q: What is the duration of the policy?
A: From October 1, 2024 to September 29, 2029
Q: Who is eligible to apply for the Interest Subsidy?
A: Units with term loans disbursed after 01/01/2024 and involved in eligible activities
Q: How much subsidy is provided?
A: Up to 7% interest reimbursement depending on activity and location
Q: How long is the subsidy provided?
A: Between 5 to 8 years depending on Taluka category
Q: Can units get subsidies from both State and Central Governments?
A: No overlapping of subsidies for the same loan or activity is allowed
Q: Is proof of loan repayment required?
A: Yes, proof of regular repayments is mandatory for claiming subsidy
Q: Are penal charges covered?
A: No, only regular interest is eligible for reimbursement