Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)
₹1/unit power tariff subsidy, ₹15 crore cap · labour-intensive textile units Gujarat
Under Gujarat's Textile Policy 2024-2029, large labour-intensive textile units receive Rs.1 per unit (kWh) off their electricity bills for five years, up to Rs.15 crore per year - applicable to both grid (DISCOM) and renewable energy under open access. This subsidy specifically rewards units that employ at least 4,000 workers registered under EPF, including at least 1,000 women. Apply through the Industries Commissionerate via an offline process.
About This Scheme
Under Gujarat's Textile Policy 2024-2029, large labour-intensive textile units receive Rs.1 per unit (kWh) off their electricity bills for five years, up to Rs.15 crore per year - applicable to both grid (DISCOM) and renewable energy under open access. This subsidy specifically rewards units that employ at least 4,000 workers registered under EPF, including at least 1,000 women. Apply through the Industries Commissionerate via an offline process.
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 "Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)" is aimed at reducing electricity costs for eligible industrial units. This subsidy provides financial relief on power tariffs for industries availing electricity either from DISCOM (Distribution Companies) or through renewable power sources under open access.
Benefits
- Rs.1 per kWh subsidy on electricity bills — covers both DISCOM grid power and renewable energy under open access
- Annual cap of Rs.15 crore per year
- Subsidy available for 5 years from Date of Commercial Production
- Applies to both garment/technical textile units and weaving/dyeing/processing units
💡 Why Startups Should Care
This labour-intensive variant raises the power tariff subsidy cap to ₹15 crore/year — reflecting the higher energy consumption of larger textile operations. For big garment or technical textile manufacturers, this is a substantial ongoing operating cost reduction.
Who Can Apply (Eligibility)
- Must qualify as a "Labour Intensive Unit": minimum 4,000 employees registered under EPF, of whom at least 1,000 must be women
- Both new units and existing units undergoing expansion, diversification, or modernization are eligible
- For expansions: subsidy applies only to additional power consumption beyond the previous year's average
- Must apply within one year from the Date of Commercial Production (DoCP)
- Electricity bills must be in the unit's name
- Eligible activities: Garments, Apparel, Made-ups, Technical Textiles, Weaving, Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery, and MMF Spinning (excludes cotton and synthetic filament yarn spinning)
How to Apply
- Submit the application to the Industries Commissioner in the prescribed format.
- Attach industrial registration and power connection documents.
- Provide proof of power sourcing (DISCOM, renewable open-access, or group captive plant).
- Submit periodically for ongoing tariff subsidy reimbursement.
- Subsidy is credited after verification of power consumption records.
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 / Industrial Entrepreneur Memorandum
- Documents of legal land possession with valid non-agriculture permission
- Power connection and consumption bills
- Proof of DISCOM, renewable open-access, or group captive power sourcing