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Assistance under Textile Policy

Assistance for Textile Industry
1. Administered By:

Industries & Mines Department, Government of Gujarat (State Government)

2. Validity Period:

From 01.10.2024 To 30.09.2029

3. Who will be Eligible?

The scheme shall be available for all the enterprise (MSME as well as large enterprise) which are engaged in the textile sector for new as well as expansion of existing unit.

4. Eligible Activity under the Policy

Activity-1- Garments, Apparel & Made-ups, technical Textiles Activity (including Composite Unit)

Activity-2- Weaving (with or without preparatory), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning to manufacture yarn from Polyester Staple Fiber (PSF)/ Viscose Staple Fiber (VSF) (excluding Spinning activity of Cotton and Synthetic Filament Yar).

5. Assistance Available:

Capital Subsidy

  • Activity - 1 : 20% to 35% of eFCI, Maximum Rs 50 Crs. to 100 Crs (based on Taluka Category)
  • Activity- 2 : 10% to 20% of eFCI, Maximum Rs 40 Crs. to 50 Crs (based on Taluka Category)

Interest Subsidy

  • Activity - 1 : 5% to 7% on Term Loan for 6 yrs to 8 yrs, Maximum 2% to 3% of eFCI p.a. (based on Taluka Category)
  • Activity- 2 : 5% to 7% on Term Loan for 5 yrs to 7 yrs, Maximum 2% of eFCI p.a. (based on Taluka Category)

Power Tariff Subsidy: of Rs. 1 per billed unit (Kwh) for a period of 5 years from DOCP.

Payroll Assistance

  • Activity - 1 : Maximum INR 2000 to INR 5000 per worker per month for period of 5 yrs. From DOCP.
  • Activity- 2 : NIL
Assistance Available for Labour Intensive Unit:

Capital Subsidy

  • Activity - 1 : 25% to 35% of eFCI, Maximum Rs 150 Crs (based on Taluka Category)
  • Activity- 2 : 25% of eFCI, Maximum Rs 150 Crs (based on Taluka Category)

Interest Subsidy

  • Activity - 1 : 7% on Term Loan for 8 yrs, Maximum 3% of eFCI p.a.
  • Activity- 2 : 7% on Term Loan for 8 yrs, Maximum 3% of eFCI p.a.

Power Tariff Subsidy of Rs.1/unit (kWH) with a cap of Rs. 15 Cr/Year for period of 5 years from DOCP.

Payroll Assistance

  • Activity - 1 : Maximum INR 2000 to INR 5000 per worker per month for period of 10 yrs
  • Activity- 2 : NIL
6. Basic Conditions of Scheme:

Application for registration other than MSME units to be filed within one year from the date of the first disbursement of term loan or one year from the date of commencement of commercial production whichever is later.

Application for Provisional/Final Eligibility Certificate other than MSME units has to be filed within 1 year from the date of commencement of commercial production or within one year from the date of issuance of registration certificate whichever is later.

Application for Provisional/Final Eligibility Certificate for MSME units has to be filed within 1 year from the date of commencement of commercial production.