Sarkari Yojana
Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)
About Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)
Through the “Gujarat Textile Policy”, an umbrella scheme of the Industries and Mines Department, Gujarat, the state seeks to raise textile investment, solidify the value chain across sub-sectors, and especially bolster garments and apparel and technical textiles. The policy operates from October 1st, 2024 to September 29th, 2029, prioritising green growth and a lower carbon footprint to build a globally competitive and environmentally sustainable textile sector. The “Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)” component trims electricity bills for eligible industrial units, offering tariff relief to those sourcing power from DISCOM (Distribution Companies) or from renewable sources under open access.
Scheme Overview
State Government
Business Entity
01 Oct 2024
Scheme Details
Eligibility Requirements
To qualify for Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit), applicants must satisfy the following conditions:
Labour Intensive Unit recognition is a precondition
Labour Intensive Unit recognition is a precondition.
Fresh industrial units are entitled to the Power…
Fresh industrial units are entitled to the Power Tariff Subsidy.
Established units that expand, diversify or modernise are…
Established units that expand, diversify or modernise are entitled as well.
Electricity bills must be issued in the name…
Electricity bills must be issued in the name of the industrial unit and submitted.
Units must apply within one year counted from…
Units must apply within one year counted from the Date of Commercial Production (DoCP).
Note: Where a unit expands, diversifies or modernises, the subsidy is limited to additional power used above the average of the previous year.
Eligible Activities:
Activity 1:
Garments, Apparel & Made-ups and Technical Textiles Activity (Composite Unit included)
Activity 2:
Weaving (with or without preparatory), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery, and MMF Spinning to produce yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF); Cotton and Synthetic Filament Yarn spinning does not qualify.
Labour Intensive Unit:
A new industrial unit is treated as a Labour Intensive Unit when it employs a minimum of 4000 (four thousand) persons duly registered under the EPF scheme, with women making up at least 1000 (one thousand) of them. An existing unit is treated the same way if its expansion/diversification during the scheme's operative period produces brand-new employment for at least 4000 (four thousand) EPF-registered persons, at least 1000 (one thousand) of them female.
Benefits Provided
Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit) provides the following benefits to eligible applicants:
Activity-1:
Power Tariff Subsidy of INR 1/unit (kWh) on DISCOM Power, Renewable Power via open-access, or power drawn from a group captive renewable energy plant, capped at INR 15 Cr/Year, for 5 years from DoCP.
Activity-2:
Power Tariff Subsidy of INR 1/unit (kWh) on DISCOM Power, Renewable Power via open-access, or power drawn from a group captive renewable energy plant, capped at INR 15 Cr/Year, for 5 years from DoCP.
Documents Required
Applicants should keep the following documents ready before starting the application:
Registration of the industrial undertaking as the law demands, together with an Industrial Entrepreneur Memorandum as prescribed by the Government of India.
Land papers: proof of legal possession, valid non-agriculture permission for industrial use, and the registered purchase / Lease / Rent deed. Units in a GIDC estate attach a copy of their plot or shed possession letter.
Consent to Establish from GPCB in applicable cases.
Detailed Project Report detailing:
Executive summary
Executive summary
Background
Background
Existing business (expansion applicants)
Existing business (expansion applicants)
Land/Shed details
Land/Shed details
Raw material procurement strategy
Raw material procurement strategy
Manpower details
Manpower details
Techno-economic viability
Techno-economic viability
Financial analysis - Term loan sanction letter from…
Financial analysis
Term loan sanction letter from the concerned financial institution(s)
Board Resolution / Authority Letter / PoA
PAN Card for each of the Enterprise and the Authorised Person
GST Registration with all of its Annexures
First Sale Bill (when commercial production is commenced)
Audit Report before expansion was initiated
2024-10-01
How to Apply
Offline Application
Applicants can apply for Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit) through the offline application process outlined below.
Application for Registration:
Make an application to the Industries Commissioner in…
Make an application to the Industries Commissioner in the prescribed format, enclosing the documents, before one year has passed since loan disbursement, production start or the policy operative date, counting from whichever is latest.
The documents undergo scrutiny and verification as per…
The documents undergo scrutiny and verification as per the prescribed procedure, following which the Industrial Commissioner issues the registration certificate.
Application for Provisional/Final Eligibility Certificate:
Application for Industrial Unit:
MSME Units having GFCI up to INR 10 Crore:
Once past DoCP, the unit should submit to the General Manager, District Industries Center.
MSME Units having GFCI above INR 10 Crore and up to 50 Crore:
Once past DoCP, the unit should submit its Provisional Eligibility Certificate request to the MSME Commissioner within 1 year from DoCP or one year from the GR's issue date, whichever is later.
Other than MSME Units:
Once past DoCP, the registered unit should submit its Provisional Eligibility Certificate request to the Industries Commissioner within 1 year from DoCP or 1 year from the registration certificate's issue date, whichever is later.
Contact Us:
Industries Commissionerate
District Industries Center
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.