The Gujarat Textile Policy is an umbrella initiative launched by the Industries and Mines Department, Gujarat, aimed at boosting investments in the textile sector and strengthening the value chain. The policy targets promoting garments, apparel, technical textiles, and sustainable manufacturing to make the sector globally competitive. Effective from October 1, 2024, to September 29, 2029, the policy also focuses on reducing carbon footprints and promoting green growth.
The Power Tariff Subsidy component of the policy provides financial relief on electricity costs for textile industries, both for DISCOM and renewable power used through open access.
Scheme Key Highlights (Short Summary)
• Launched by: Industries and Mines Department, Gujarat
• Duration: October 1, 2024 – September 29, 2029
• Objective: Provide power tariff subsidy for textile industries to promote energy efficiency and sustainability
• Subsidy: INR 1/unit (kWh) for power sourced from DISCOM or Renewable Power through open-access
• Available for: Garments, apparel, technical textiles, weaving, knitting, dyeing, processing, etc.
Benefits
• INR 1/unit (kWh) subsidy on power tariffs for industries using electricity from DISCOM or renewable power through open access
• 5 years of subsidy support from Date of Commercial Production (DoCP)
• Applicable for:
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Garments, apparel & made-ups, technical textiles
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Weaving, knitting, dyeing & processing, texturizing, twisting, embroidery, MMF spinning
Eligibility
• The unit must be in the textile sector (manufacturing)
• New or expanding units are eligible
• The unit must submit electricity bills in its name
• Apply within one year from DoCP
• Only additional power consumption from the expansion/diversification is eligible
• The unit must be engaged in eligible activities (garments, weaving, dyeing, etc.)
• Exclusions: Power from captured power plants (thermal/renewable) is not eligible
Exclusions
• Power consumption from captured power plants is not eligible
• Units under sick unit revival plans are not eligible
• Cotton Spinning and Synthetic Filament Yarn production is not eligible
Application Process
Offline
Registration Process:
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Apply for registration with the Industries Commissioner using the prescribed format within one year from the loan disbursement, production start, or policy operative date
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After scrutiny, a registration certificate is issued by the Industrial Commissioner
Provisional/Final Eligibility Certificate:
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For MSMEs with GFCI up to ₹10 crore, submit the application to the District Industries Center
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For MSMEs with GFCI above ₹10 crore, submit to MSME Commissioner
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For non-MSMEs, submit to Industries Commissioner
Documents Required
• Registration certificate (Udyog Aadhaar or IEM/LOI)
• Land/Property Documents (NA Permission, Sale Deed, etc.)
• 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 from the power supplier
Frequently Asked Questions (FAQs)
Q: What is the “Gujarat Textile Policy”?
A: A scheme launched by the Industries and Mines Department to strengthen the textile industry, focusing on sustainability, job creation, and making the sector globally competitive.
Q: What is the objective of the “Power Tariff Subsidy”?
A: The objective is to reduce the cost of electricity for textile industries, promoting sustainable manufacturing practices.
Q: What is the amount of subsidy provided under this scheme?
A: INR 1/unit (kWh) for power sourced from DISCOM or renewable energy through open-access.
Q: For how long is the subsidy available?
A: The subsidy is available for 5 years from the Date of Commercial Production (DoCP).
Q: Are service-based industries eligible for this subsidy?
A: No, only manufacturing units in the textile sector are eligible.
Q: Can an enterprise apply for this subsidy if it consumes power from its own captive power plant?
A: No, only electricity sourced from DISCOM or open-access renewable power is eligible for this subsidy.
Q: How is additional power consumption calculated for units undergoing expansion?
A: The subsidy applies only to the additional power consumption beyond the previous year’s average after expansion.