The Gujarat Textile Policy launched by the Industries and Mines Department, Gujarat, aims to boost investment across the textile value chain, with added focus on employment generation and eco-friendly practices. Operational from October 1, 2024, to September 29, 2029, this policy includes multiple fiscal incentives.
The Interest Subsidy (Fiscal Incentives to Labour Intensive Unit) component provides financial support through interest subsidies on term loans to new or expanding textile units that generate large-scale employment.
Scheme Key Highlights (Short Summary)
• Interest Subsidy of up to 7% on term loans
• Applicable for up to 8 years
• Maximum 3% of eFCI per annum reimbursed
• Targets Labour Intensive Units with 4000+ employees (including 1000+ women)
• Activities Covered: Garments, Technical Textiles, Weaving, Dyeing, MMF Spinning
Benefits
Financial Assistance Structure:
| Category of Taluka | Activity 1 | Activity 2 |
|---|---|---|
| Category 1 & PM MITRA Park | 7% for 8 years (max 3% of eFCI/year) | 7% for 8 years (max 3% of eFCI/year) |
| Category 2 | 7% for 8 years (max 3% of eFCI/year) | 7% for 8 years (max 3% of eFCI/year) |
| Category 3 | 7% for 8 years (max 3% of eFCI/year) | 7% for 8 years (max 3% of eFCI/year) |
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 activity of Cotton and Synthetic Filament Yarn)
Labour Intensive Unit Definition:
• Employs minimum 4000 persons registered under EPF
• Includes at least 1000 female employees
• Can be a new unit or existing unit undertaking expansion/diversification
Eligibility
• Recognized as a Labour Intensive Unit under policy terms
• Must have taken term loan for Gross Fixed Capital Investment
• Loan disbursed on or after 01/01/2024 (for units under implementation as of 01/10/2024)
• Application within 1 year from Date of Commercial Production (DoCP)
• Must be regular in loan repayment and pay at least 2% interest on loan
Application Process
Offline
Registration Application:
• Step 1: Apply to the Industries Commissioner in the prescribed format within 1 year from loan disbursement/start of production/policy operative date
• Step 2: After scrutiny and document verification, a registration certificate is issued
Eligibility Certificate Application:
• MSMEs with GFCI up to ₹10 Cr: Apply to General Manager, District Industries Center
• MSMEs with GFCI above ₹10 Cr to ₹50 Cr: Apply to MSME Commissioner
• Others: Apply to Industries Commissioner
(All applications must be submitted within 1 year of DoCP or from date of registration certificate)
Contact Us:
• Industries Commissionerate
• District Industries Center
Documents Required
• Registration documents of the industrial unit (as per law)
• Industrial Entrepreneur Memorandum
• Legal land possession documents and NA permission
• Lease/Ownership deed or GIDC possession letter
• GPCB “Consent to Establish” (if applicable)
• Detailed Project Report (including background, financials, manpower, land, etc.)
• Term Loan Sanction Letter
• Board Resolution / Power of Attorney / Authority Letter
• PAN Card of the unit and authorized signatory
• GST registration
• First Sale Bill (if production started)
• Audit Report (for expansions only)
Frequently Asked Questions (FAQs)
Q: What is the objective of this scheme component?
A: To financially support labour-intensive textile units via interest subsidies to promote employment and sustainability.
Q: How much subsidy is provided under this scheme?
A: 7% on term loan interest for 8 years, subject to a maximum of 3% of eligible Fixed Capital Investment per annum.
Q: Who qualifies as a Labour Intensive Unit?
A: A unit employing at least 4000 people (including 1000 women), registered under EPF.
Q: Can a unit avail subsidy if the loan was disbursed before 01/01/2024?
A: No, only loans disbursed on or after 01/01/2024 are eligible.
Q: What happens if the enterprise defaults on loan repayment?
A: The subsidy may be discontinued or recovered, as regular repayment is mandatory.
Q: Is proof of loan repayment required?
A: Yes, documentary proof of repayment is necessary for claiming the subsidy.
Q: Can the subsidy be claimed if support is already availed from the Central Government?
A: Yes, but total combined interest subsidy must not exceed total term loan interest payable.
Q: Does the subsidy cover penal interest or bank charges?
A: No, only regular interest on term loans is eligible.