Gujarat Textile Policy: Power Tariff Subsidy
₹1/unit power tariff subsidy for 5 years · Gujarat textile manufacturing units
Gujarat textile industrial units in eligible activities receive a ₹1 per unit (kWh) electricity subsidy for 5 years from the date commercial production begins, under the Gujarat Textile Policy 2024–2029. The subsidy applies to power purchased from DISCOMs or through renewable energy open access — not from captive plants. Apply to the Industries Commissioner within one year of starting production.
About This Scheme
Gujarat textile industrial units in eligible activities receive a ₹1 per unit (kWh) electricity subsidy for 5 years from the date commercial production begins, under the Gujarat Textile Policy 2024–2029. The subsidy applies to power purchased from DISCOMs or through renewable energy open access — not from captive plants. Apply to the Industries Commissioner within one year of starting 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 "Power Tariff Subsidy" 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
- ₹1 per kWh (unit) subsidy on all electricity consumed for 5 years from commercial production start
- Covers power purchased from DISCOM as well as renewable energy via open access
- Applies equally to Activity 1 (garments/apparel/technical textiles) and Activity 2 (weaving/dyeing/knitting)
💡 Why Startups Should Care
Power is one of the largest recurring costs in textile manufacturing. A flat ₹1/unit subsidy for 5 years on your entire electricity consumption compounds into significant savings — for a mid-sized unit consuming 50,000 units/month, that's ₹50,000/month back.
Who Can Apply (Eligibility)
- Must be a new industrial unit OR an existing unit doing expansion, diversification, or modernization
- Must operate in garments, apparel, made-ups, technical textiles (Activity 1) or weaving, knitting, dyeing/processing, texturising, MMF spinning (Activity 2)
- Electricity bills must be in the unit's own name
- Must apply within one year from the Date of Commercial Production
- Expansion units: subsidy applies only on incremental power consumption above previous year's average
- Power from captive thermal or renewable power plants is NOT eligible
Exclusions
- Power from captive power plants (thermal or renewable) is not eligible
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 or renewable open-access).
- Submit periodically for ongoing tariff subsidy reimbursement.
- Subsidy is credited after verification of power consumption records.
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 "Power Tariff Subsidy" component?
The "Power Tariff Subsidy" component provides financial relief on power tariffs for industries availing electricity either from DISCOM (Distribution Companies) or through renewable power sources under open access.
Who can apply for this subsidy?
Eligible new industrial units and those undergoing expansion, diversification, or modernization can apply.
What is the amount of financial assistance provided under this subsidy?
The Power Tariff Subsidy provides financial assistance of INR 1 per unit (kWh) of electricity consumed by eligible industrial units.
For how many years is the subsidy available?
The subsidy is available for a period of five years from the Date of Commencement of Production (DoCP).
Can an industrial unit consuming power from its own captive power plant avail of this subsidy?
No, industrial units consuming power from their own captive power plants, whether thermal or renewable, are not eligible for the subsidy.
Does the subsidy apply to electricity sourced from renewable energy?
Yes, the subsidy applies to electricity sourced from DISCOM or renewable energy under open access, but not from a captive renewable power plant.
How is additional power consumption calculated for units undergoing expansion, diversification, or modernization?
Additional power consumption is calculated based on the difference between the new consumption level and the average consumption of the previous year before expansion, diversification, or modernization.
Can an industrial unit claim a subsidy for electricity bills from a previous financial year?
No, the subsidy is applicable only to electricity consumption from the Date of Commencement of Production (DoCP) onwards.
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 or renewable open-access power sourcing