Gujarat Textile Policy: Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)
Large textile units classified as Labour Intensive Units (4,000+ EPF-registered employees including 1,000+ women) can receive a higher capital subsidy of 25–35% on their eligible fixed capital investment, with a maximum of ₹150 crore, under the Gujarat Textile Policy 2024–2029. Apply offline through the Industries Commissioner after commencing commercial production.
About This Scheme
Large textile units classified as Labour Intensive Units (4,000+ EPF-registered employees including 1,000+ women) can receive a higher capital subsidy of 25–35% on their eligible fixed capital investment, with a maximum of ₹150 crore, under the Gujarat Textile Policy 2024–2029. Apply offline through the Industries Commissioner after commencing commercial production.
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 "Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)" provides financial assistance to eligible industrial units through subsidies on their capital expenditures. The subsidy is granted based on the category of the location and the type of activity undertaken.
Benefits
- Category 1 locations / PM MITRA Park:
- Activity 1 (garments, apparel, technical textiles): 35% of eFCI, up to ₹150 crore
- Activity 2 (weaving, dyeing, knitting, etc.): 25% of eFCI, up to ₹150 crore
- Category 2 locations:
- Activity 1: 30% of eFCI, up to ₹150 crore
- Activity 2: 25% of eFCI, up to ₹150 crore
- Category 3 locations:
- Activity 1: 25% of eFCI, up to ₹150 crore
- Activity 2: 25% of eFCI, up to ₹150 crore
- Higher cap (₹150 crore) compared to the regular capital subsidy scheme (₹50–100 crore)
Who Can Apply (Eligibility)
- Your unit must be recognised as a Labour Intensive Unit: minimum 4,000 EPF-registered employees of which at least 1,000 are female
- Applies to both new units and existing units carrying out expansion/diversification that creates at least 4,000 new jobs (1,000+ female)
- Must be in eligible textile activities: garments, apparel, made-ups, technical textiles, weaving, dyeing, knitting, processing, etc.
- Must have availed a term loan for the project
- Must commence commercial production before applying for the subsidy
- Apply within one year from Date of Commercial Production (DoCP)
- Combined state + central capital subsidy cannot exceed total term loan disbursed
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 "Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)" component?
The component is a financial assistance program that provides subsidies to Labour Intensive Units based on their fixed capital investment.
Who is eligible to apply for this subsidy?
Labour Intensive Units that have availed a term loan and meet the eligibility criteria specified in the scheme are eligible to apply for the subsidy.
What is the maximum subsidy amount that an industrial unit can receive?
The maximum subsidy amount varies based on the category of the Taluka and activity type, with a maximum limit of [?]150,00,00,000/-.
When will the subsidy be disbursed to the industrial unit?
The subsidy will be disbursed in 5 equal annual installments after the commencement of commercial production.
Can an industrial unit apply for the subsidy if the term loan is sanctioned after one year from the Date of Commercial Production (DoCP)?
No, an industrial unit will not be eligible for the Capital Subsidy if the term loan is sanctioned more than one year after the DoCP.
Can an industrial unit avail the Capital Subsidy if it is already receiving a subsidy from the Central Government?
Yes, an industrial unit can avail the subsidy; however, the total subsidy from both the State and Central Governments should not exceed the total term loan amount disbursed.
Is it mandatory for a Labour Intensive Unit to register under the EPF scheme?
Yes, it is mandatory for all employees of the Labour Intensive Unit to be registered under the EPF scheme to qualify for the benefits of this component.
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)