Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)

The “Gujarat Textile Policy” is an umbrella initiative by the Industries and Mines Department, Government of Gujarat, effective from October 1, 2024, to September 29, 2029. It aims to promote investment across the textile value chain and support labour-intensive units with fiscal incentives, including power tariff subsidies. The policy emphasizes sustainability, job creation, and global competitiveness, particularly in garments, apparel, technical textiles, and associated sectors.

Benefits

Eligibility

• Unit must be recognized as a Labour Intensive Unit

• Applicable to:

  • New industrial units

  • Existing units undergoing expansion, diversification, or modernization

• Electricity bills must be in the name of the industrial unit

• Application must be made within 1 year from DoCP (Date of Commercial Production)

Note: For expansion/diversification/modernization, subsidy is only for additional power consumption compared to previous year’s average.

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 & Synthetic Filament Yarn)

Definition of Labour Intensive Unit:

• New unit: Employs min. 4000 workers registered under EPF; out of these, at least 1000 should be female

• Existing unit (Expansion/Diversification): Must generate new employment of 4000 persons (including 1000 women)

Application Process

Mode: Offline

Registration Application:

1. Apply to the Industries Commissioner in prescribed format

2. Submit within 1 year from:

   • Loan disbursement

   • Start of production

   • Policy operative date (whichever is later)

3. After verification, Registration Certificate will be issued

Provisional/Final Eligibility Certificate Application:

• MSME Units (GFCI ≤ ₹10 Cr): Apply to General Manager, District Industries Center after DoCP

• MSME Units (GFCI > ₹10 Cr ≤ ₹50 Cr): Apply to MSME Commissioner within 1 year from DoCP or GR date

• Other Units: Apply to Industries Commissioner within 1 year from DoCP or registration certificate date

Contact Offices:

• Industries Commissionerate

• District Industries Center (DIC)

Documents Required

• Industrial registration certificate and Industrial Entrepreneur Memorandum (IEM)

• Land ownership or lease documents with NA (non-agricultural) permission

• GIDC possession letter, if applicable

• Consent to Establish from GPCB (if required)

• Detailed Project Report (including Executive Summary, Raw Material Strategy, Financial Analysis, etc.)

• Sanction letter for term loan

• Board resolution / Power of Attorney

• PAN card of enterprise and authorized person

• GST registration certificate

• First sale bill (proof of commencement of production)

• Audit report (before expansion, if applicable)

Frequently Asked Questions

• Q: Who is eligible for this subsidy?
  Labour-intensive textile units that are new or expanding/diversifying during the policy period.

• Q: What’s the maximum subsidy amount?
  ₹15 crore per year, for 5 years from DoCP.

• Q: Is there any condition for employment?
  Yes, the unit must employ at least 4000 persons under EPF, with at least 1000 women.

• Q: How to apply for this subsidy?
  Through offline mode to the Industries Commissioner or designated authorities within 1 year of DoCP.

Sources And References

• Official Guidelines