Sarkari Yojana
Gujarat Textile Policy: Interest Subsidy (Fiscal Incentives to Labour Intensive Unit)
About Gujarat Textile Policy: Interest Subsidy (Fiscal Incentives to Labour Intensive Unit)
The “Gujarat Textile Policy” is an overarching scheme brought out by the Industries and Mines Department, Gujarat, to channel more investment into textiles, firm up the value chain across sub-sectors, and pay particular attention to garments and apparel and to technical textiles. Its term runs from October 1st, 2024 to September 29th, 2029, and its focus is on green growth and cutting carbon emissions so that the industry becomes globally competitive and environmentally sustainable. Its “Interest Subsidy” component provides a credit-linked subsidy on interest for qualifying industrial activities. Part of the interest that units pay on term loans for Gross Fixed Capital Investment is reimbursed, lightening their financial burden.
Scheme Overview
State Government
Business Entity
01 Oct 2024
Scheme Details
Eligibility Requirements
To qualify for Gujarat Textile Policy: Interest Subsidy (Fiscal Incentives to Labour Intensive Unit), applicants must satisfy the following conditions:
The unit must have Labour Intensive Unit recognition
The unit must have Labour Intensive Unit recognition.
A term loan for Gross Fixed Capital Investment…
A term loan for Gross Fixed Capital Investment must have been sanctioned to the unit.
Units already under implementation on 01/10/2024 qualify only…
Units already under implementation on 01/10/2024 qualify only if the loan was disbursed on or after 01/01/2024.
Application has to be made within one year…
Application has to be made within one year from the Date of Commercial Production (DoCP).
Repayment of instalments and interest should be up…
Repayment of instalments and interest should be up to date and regular.
The unit itself must carry no less than…
The unit itself must carry no less than 2% interest on the term loan.
Eligible Activities:
Activity 1:
Garments, Apparel & Made-ups and Technical Textiles Activity (Composite Unit also included)
Activity 2:
Weaving (including or excluding preparatory), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery, and MMF Spinning that manufactures yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF) (Cotton and Synthetic Filament Yarn spinning excluded).
Labour Intensive Unit:
The term Labour Intensive Unit refers to a new industrial unit giving jobs to a minimum of 4000 (four thousand) persons properly registered under the EPF scheme, at least 1000 (one thousand) of whom are female. It also includes an existing unit that, by expanding or diversifying during the operative period of the scheme, generates completely new employment for a minimum of 4000 (four thousand) EPF-registered persons, including at least 1000 (one thousand) women.
Benefits Provided
Gujarat Textile Policy: Interest Subsidy (Fiscal Incentives to Labour Intensive Unit) provides the following benefits to eligible applicants:
Financial Assistance:
Category 1 & PM MITRA Park:
for both Activity 1 and Activity 2, 7% on Term Loan for 8 years, limited to 3% of eFCI per annum
Category 2:
for both Activity 1 and Activity 2, 7% on Term Loan for 8 years, limited to 3% of eFCI per annum
Category 3:
for both Activity 1 and Activity 2, 7% on Term Loan for 8 years, limited to 3% of eFCI per annum
Documents Required
Applicants should keep the following documents ready before starting the application:
Registration document for the industrial undertaking as mandated by law, along with the Industrial Entrepreneur Memorandum in the Government of India format.
Proof of legal land possession having valid non-agriculture permission for industrial use, plus the registered purchase / Lease / Rent deed. A possession letter copy should accompany any plot or shed in a GIDC estate.
Consent to Establish obtained from GPCB, if relevant to the unit.
Detailed Project Report comprising:
Executive summary
Executive summary
Background
Background
Details about the existing business (when expanding)
Details about the existing business (when expanding)
Land/Shed details
Land/Shed details
Plan for buying raw material
Plan for buying raw material
Manpower details
Manpower details
Techno-economic viability check
Techno-economic viability check
Financial analysis - Term loan sanction letter, from…
Financial analysis
Term loan sanction letter, from financial institution(s)
Board Resolution / Authority Letter / PoA
Enterprise's PAN Card and the Authorised Person's PAN Card
GST Registration including every Annexure
First Sale Bill (where commercial production has already begun)
Audit Report prepared prior to initiating expansion
2024-10-01
How to Apply
Offline Application
Applicants can apply for Gujarat Textile Policy: Interest Subsidy (Fiscal Incentives to Labour Intensive Unit) through the offline application process outlined below.
Application for Registration:
Registration is sought from the Industries Commissioner through…
Registration is sought from the Industries Commissioner through the prescribed format, with documents attached, within one year after loan disbursement, production start or the policy operative date (latest date applies).
After the documents are scrutinised and verified under…
After the documents are scrutinised and verified under the prescribed method, the Industrial Commissioner grants a registration certificate.
Application for Provisional/Final Eligibility Certificate:
Application for Industrial Unit:
MSME Units having GFCI up to INR 10 Crore:
These smaller MSMEs apply to the General Manager, District Industries Center after DoCP.
MSME Units having GFCI above INR 10 Crore and up to 50 Crore:
These MSMEs apply after DoCP to the MSME Commissioner for a Provisional Eligibility Certificate, no later than 1 year from DoCP or one year from issue of this GR, whichever is later.
Other than MSME Units:
Non-MSME registered units apply after DoCP to the Industries Commissioner for a Provisional Eligibility Certificate, no later than 1 year from DoCP or 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.