Sarkari Yojana
Gujarat Textile Policy: Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)
About Gujarat Textile Policy: Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)
Framed by the Industries and Mines Department, Gujarat, the “Gujarat Textile Policy” is an umbrella scheme whose purpose is to pull in investment, tighten the textile value chain at every sub-sector level and give a special boost to garments and apparel as well as technical textiles. The policy runs from October 1st, 2024 to September 29th, 2029 and is built around green growth and carbon footprint reduction, with an eye on a globally competitive, environmentally sustainable sector. The “Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)” component helps eligible industrial units by subsidising what they spend on capital assets. The subsidy level is fixed according to the location category and the activity the unit performs.
Scheme Overview
State Government
Business Entity
01 Oct 2024
Scheme Details
Eligibility Requirements
To qualify for Gujarat Textile Policy: Capital Subsidy (Fiscal Incentives to Labour Intensive Unit), applicants must satisfy the following conditions:
Recognition as a Labour Intensive Unit is required
Recognition as a Labour Intensive Unit is required.
The project should be financed by a Term…
The project should be financed by a Term Loan taken by the unit.
Disbursement of the subsidy can be sought only…
Disbursement of the subsidy can be sought only after commercial production has begun.
A claim must be lodged within one year…
A claim must be lodged within one year counted from the Date of Commercial Production (DoCP).
State and Central subsidy taken together must stay…
State and Central subsidy taken together must stay within the total term loan amount disbursed.
Eligible Activities:
Activity 1:
Activities in Garments, Apparel & Made-ups and Technical Textiles, Composite Units included
Activity 2:
Weaving (with or without preparatory work), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery, plus MMF Spinning that produces yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF); spinning of Cotton and Synthetic Filament Yarn is left out.
Labour Intensive Unit:
A Labour Intensive Unit is a new industrial unit employing at least 4000 (four thousand) people who are properly registered under the EPF scheme, with no fewer than 1000 (one thousand) of them being women. An existing unit also counts if, while expanding or diversifying during the scheme's operative period, it creates entirely new jobs for at least 4000 (four thousand) EPF-registered persons, of whom at least 1000 (one thousand) are women.
Benefits Provided
Gujarat Textile Policy: Capital Subsidy (Fiscal Incentives to Labour Intensive Unit) provides the following benefits to eligible applicants:
Financial Assistance:
Category 1 & PM MITRA Park:
Activity 1 receives 35% of eFCI and Activity 2 receives 25% of eFCI, each capped at ₹150,00,00,000/-
Category 2:
Activity 1 receives 30% of eFCI and Activity 2 receives 25% of eFCI, each capped at ₹150,00,00,000/-
Category 3:
Activity 1 and Activity 2 both receive 25% of eFCI, each capped at ₹150,00,00,000/- Note:
Eligible Fixed Capital Investment:
The term Eligible Fixed Capital Investment (eFCI) covers the listed investment components put in during the Eligible Investment Period.
A unit drawing Capital Subsidy from a Central…
A unit drawing Capital Subsidy from a Central Government scheme too may not, in any situation, get combined State and Central Capital Subsidy exceeding the total term loan amount disbursed.
Documents Required
Applicants should keep the following documents ready before starting the application:
Proof that the industrial undertaking is registered as the law requires, plus its Industrial Entrepreneur Memorandum in the Government of India's prescribed form.
Documents for the land: legal possession, valid non-agriculture permission for industrial use, and the registered purchase / Lease / Rent deed. Plots or sheds within a GIDC estate must also come with a copy of the possession letter.
Where applicable, the Consent to Establish from GPCB.
A Detailed Project Report with these headings:
Executive summary
Executive summary
Background to the project
Background to the project
Present business details (if this is an expansion)
Present business details (if this is an expansion)
Land/Shed information
Land/Shed information
Raw material procurement method
Raw material procurement method
Manpower details
Manpower details
Techno-economic viability evaluation
Techno-economic viability evaluation
Financial analysis - The financial institution(s)' term loan…
Financial analysis
The financial institution(s)' term loan sanction letter
Board Resolution / Authority Letter / PoA
PAN Card for the Enterprise and for the Authorised Person
GST Registration along with all attachments.
First Sale Bill where commercial production has commenced
Audit Report that predates the start of expansion
2024-10-01
How to Apply
Offline Application
Applicants can apply for Gujarat Textile Policy: Capital Subsidy (Fiscal Incentives to Labour Intensive Unit) through the offline application process outlined below.
Application for Registration:
Fill in the prescribed format and lodge it…
Fill in the prescribed format and lodge it with the Industries Commissioner, with all documents, inside one year of loan disbursement, production start or the policy operative date, depending on which is latest.
When the application arrives, documents are scrutinised and…
When the application arrives, documents are scrutinised and verified under the prescribed process and the Industrial Commissioner then issues the registration certificate.
Application for Provisional/Final Eligibility Certificate
:- Application for Industrial Unit
MSME Units having GFCI up to INR 10 Crore:
After DoCP, the General Manager, District Industries Center is the authority to apply to.
MSME Units having GFCI above INR 10 Crore and up to 50 Crore:
After DoCP, the MSME Commissioner receives the request for a Provisional Eligibility Certificate, which must be made within 1 year from DoCP or within one year from issue of this GR, whichever is later.
Other than MSME Units:
After DoCP, the Industries Commissioner receives the Provisional Eligibility Certificate application from the registered unit, due within 1 year from DoCP or within 1 year from issue of the registration certificate, whichever is later.
Contact Us:
Industries Commissionerate
District Industries Center
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.