Gujarat Textile Policy: Capital Subsidy
Textile industrial units in Gujarat can receive a capital subsidy of 20–35% on their eligible fixed capital investment, with a maximum of ₹50–100 crore, under the Gujarat Textile Policy 2024–2029. The subsidy rate depends on the location category of your unit and the type of textile activity. Apply offline to the Industries Commissioner after commencing commercial production.
About This Scheme
Textile industrial units in Gujarat can receive a capital subsidy of 20–35% on their eligible fixed capital investment, with a maximum of ₹50–100 crore, under the Gujarat Textile Policy 2024–2029. The subsidy rate depends on the location category of your unit and the type of textile activity. Apply offline to 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" 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 ₹100 crore
- Activity 2 (weaving, dyeing, knitting, etc.): 20% of eFCI, up to ₹50 crore
- Category 2 locations:
- Activity 1: 30% of eFCI, up to ₹100 crore
- Activity 2: 18% of eFCI, up to ₹50 crore
- Category 3 locations:
- Activity 1: 20% of eFCI, up to ₹50 crore
- Activity 2: 10% of eFCI, up to ₹40 crore
Who Can Apply (Eligibility)
- Your unit must be in the textile sector (garments, apparel, made-ups, weaving, knitting, dyeing, processing, technical textiles, etc.)
- You must have availed a term loan for the project
- You must commence commercial production before applying for the subsidy
- Apply within one year from Date of Commercial Production (DoCP)
- The term loan must be sanctioned before DoCP (loans sanctioned after DoCP are ineligible)
- Combined state + central capital subsidy cannot exceed total term loan disbursed
Exclusions
- The Industrial Unit will not be eligible for Capital Subsidy under this Policy if, the Term Loan is sanctioned after one year from Date of Commercial Production (DoCP).
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. Contact Us:
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" component?
The component is a financial assistance program that provides subsidies to eligible industrial units based on their fixed capital investment.
Who is eligible to apply for this subsidy?
Industrial 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 [?]100,00,00,000/-.
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.
What is the difference between a Provisional and a Final Eligibility Certificate?
The Provisional Eligibility Certificate is issued based on initial verification, whereas the Final Eligibility Certificate is granted after an Asset Verification Team reviews the investment details and submits a report for final approval.
Can an industrial unit apply for the Final Eligibility Certificate directly?
Yes, if the entire investment is completed at the time of application, the industrial unit can apply directly for the Final Eligibility Certificate instead of the Provisional Eligibility Certificate.
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 nonagriculture 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 Annexures
- First Sale Bill ( In case of Commercial Production is commenced)
- Audit Report (Before initiation of Expansion)