Gujarat Textile Policy: Power Tariff Subsidy
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)
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 consumed from captive power plants (both thermal and renewable) is not eligible.
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 "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, 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)