Gujarat Textile Policy: Assistance to SHG for Job Work (Fiscal Incentives to Labour Intensive Unit)
Self-Help Groups (SHGs) with at least 25 female members that do textile job work for Labour Intensive Units (large textile units with 4,000+ employees) in Gujarat receive training and payroll support. Members get ₹5,000/month training allowance for 3 months and 25% of job work value (up to ₹5,000/month) as payroll support for 5 years. Apply offline through the Industries Commissioner.
About This Scheme
Self-Help Groups (SHGs) with at least 25 female members that do textile job work for Labour Intensive Units (large textile units with 4,000+ employees) in Gujarat receive training and payroll support. Members get ₹5,000/month training allowance for 3 months and 25% of job work value (up to ₹5,000/month) as payroll support for 5 years. Apply offline through the Industries Commissioner.
Full official description
The "Gujarat Textile Policy" is an umbrella scheme introduced by the Industries and Mines Department, Gujarat. It aimed 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 "Assistance to SHG for Job Work" provides financial assistance to Self-Help Groups (SHGs) engaged in job work. Eligible SHG members can receive payroll assistance and incentives to enhance their financial stability and encourage women's participation in industrial activities.
Benefits
- Training assistance: ₹5,000 per month per member for the first 3 months
- Payroll assistance: 25% of job work value, up to ₹5,000 per month per member, for 5 years
- Encourages women's employment and income through large-scale textile supply chains
Who Can Apply (Eligibility)
- Your SHG must have at least 25 female members
- Only female workers of the SHG are eligible for assistance
- The SHG must be doing job work for a Labour Intensive Unit in the textile sector
- A Labour Intensive Unit is defined as a new or expanding textile unit with at least 4,000 EPF-registered employees, of whom at least 1,000 are female
- The industrial unit must pay ₹5,000/month per female SHG worker in addition to normal job work charges
- SHGs independently engaged in manufacturing (not job work) are not eligible
Exclusions
- SHG is independently engaged in manufacturing (not doing job work) as defined under this Resolution, then it will not be eligible for the above incentives.
How to Apply
Application for Registration:
Step 1: The application has to be made to the Industries Commissioner in the prescribed format along with the following documents within one year from loan disbursement, production start, or policy operative date (whichever is later).
Step 2: On receipt of the application and after the scrutiny and verification of relevant documents as per the procedure prescribed, registration certificate will be issued by the Industrial Commissioner.
Application for Provisional/Final Eligibility Certificate:
Application for Industrial Unit:
- MSME Units having GFCI up to INR 10 Crore: After DoCP, the Industrial Unit shall submit an application to the General Manager, District Industries Center. - MSME Units having GFCI above INR 10 Crore and up to 50 Crore: After DoCP, the Industrial Unit shall submit an application to MSME Commissioner for Provisional Eligibility Certificate within 1 year from DoCP or within one year from the date of issuance of this GR, whichever is later. - Other than MSME Units: After DoCP, the Industrial Unit, having registration shall submit an application for Provisional Eligibility Certificate to the Industries Commissioner within 1 year from DoCP or within 1 year from the date of issuance of the registration certificate, whichever is later.
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Frequently Asked Questions
What is the "Gujarat Textile Policy"?
The "Gujarat Textile Policy" is a government initiative aimed at strengthening the textile sector by promoting investment, sustainability, employment generation, and value chain integration.
What is the operative period of the "Gujarat Textile Policy"?
The operative period of the Gujarat Textile Policy 2024 is from October 1, 2024, to September 30, 2029, covering a span of five years.
How does the policy contribute to employment generation?
The policy focuses on creating a robust textile ecosystem by attracting investments, encouraging MSMEs, supporting women entrepreneurs, and expanding production capacities, thereby generating employment opportunities.
What incentives are provided under the policy?
The policy offers financial assistance, infrastructure support, and subsidies to strengthen textile manufacturing, encourage investment, and support MSMEs, startups, and large enterprises.
What is the objective of the "Assistance to SHG for Job Work (Fiscal Incentives to Labour Intensive Unit)" component?
The component provides financial assistance to Self-Help Groups (SHGs) engaged in job work. Eligible SHG members can receive payroll assistance and incentives to enhance their financial stability and encourage women's participation in industrial activities.
What is the maximum payroll assistance an SHG member can receive under this scheme?
Each eligible SHG member can receive payroll assistance of up to [?]5,000/- per month for a period of 5 years, subject to 25% of the job work value turnover.
Is training assistance available under this scheme?
Yes, each SHG member is eligible to receive [?]5,000/- per month as training assistance for a period of 3 months.
Are SHGs engaged in manufacturing eligible for this scheme?
No, SHGs engaged in independent manufacturing activities are not eligible for this scheme. Only SHGs performing job work for industrial units can apply.
What will happen if the industrial unit does not pay ₹5,000 per month per female worker?
If the industrial unit fails to pay the required amount, it will not be eligible to receive payroll assistance under the scheme.
Can male members of an SHG receive financial assistance under this scheme?
No, this scheme is exclusively designed to support female members of SHGs.
Can an SHG receive both training assistance and payroll assistance?
Yes, eligible SHGs can receive both types of assistance under this scheme.
Can an SHG with fewer than 25 female members apply for the scheme?
No, an SHG must have at least 25 female members to be eligible for financial assistance.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Document of registration of the industrial undertaking, as applicable under law, and the Industrial Entrepreneur Memorandum, as prescribed by the Government of India.
- Documents related to legal possession of land with valid non-agriculture permission for industrial use, and registered purchase / Lease / Rent deed. If the plot or shed is in GIDC estate, a copy of the possession letter should be attached.
- Consent to Establish from GPCB, if applicable.
- Detailed Project Report containing the following:
- Executive summary
- Background
- Details of existing business (in case of expansion)
- Land/Shed details
- Raw material procurement strategy
- Manpower details
- Techno-economic viability assessment
- Financial analysis
- Term loan sanction letter from financial institution(s)
- Board Resolution / Authority Letter / PoA
- PAN Card of Enterprise and Authorized Person
- GST Registration with all attachments.
- First Sale Bill ( In case of Commercial Production is commenced)
- Audit Report (Before initiation of Expansion)