Sarkari Yojana
Gujarat Textile Policy: Interest Subsidy
About Gujarat Textile Policy: Interest Subsidy
The Industries and Mines Department, Gujarat, operates the “Gujarat Textile Policy” as an umbrella scheme. It intends to grow investment in textiles, fortify the value chain in all sub-sectors, and above all strengthen garments and apparel and the technical textiles industry. Applicable from October 1st, 2024 to September 29th, 2029, the policy promotes green growth and a reduced carbon footprint to make the sector globally competitive and environmentally sustainable. The “Interest Subsidy” component gives a credit-linked interest subsidy for eligible industrial activities. By paying back part of the interest charged on term loans taken for Gross Fixed Capital Investment, it eases the financial load on industrial units.
Scheme Overview
State Government
Business Entity
01 Oct 2024
Scheme Details
Eligibility Requirements
To qualify for Gujarat Textile Policy: Interest Subsidy, applicants must satisfy the following conditions:
The unit should hold a sanctioned term loan…
The unit should hold a sanctioned term loan raised for Gross Fixed Capital Investment.
For units that were under implementation as of…
For units that were under implementation as of 01/10/2024, the loan has to be disbursed on or after 01/01/2024.
The claim must be made within one year…
The claim must be made within one year of the Date of Commercial Production (DoCP).
Instalments and interest must be repaid regularly
Instalments and interest must be repaid regularly.
A minimum of 2% interest on the term…
A minimum of 2% interest on the term loan has to be borne by the unit itself.
Eligible Activities:
Activity 1:
Garments, Apparel & Made-ups, and Technical Textiles Activity, with Composite Units included
Activity 2:
Weaving (with or without preparatory processes), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning for making yarn out of Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF), but not Spinning of Cotton and Synthetic Filament Yarn.
Benefits Provided
Gujarat Textile Policy: Interest Subsidy provides the following benefits to eligible applicants:
Financial Assistance:
Category 1 & PM MITRA Park
Category 1 & PM MITRA Park: Activity 1 – 7% on Term Loan for 8 years, up to 3% of eFCI per annum; Activity 2 – 7% on Term Loan for 7 years, up to 2% of eFCI per annum
Category 2
Category 2: Activity 1 – 7% on Term Loan for 8 years, up to 2.5% of eFCI per annum; Activity 2 – 7% on Term Loan for 7 years, up to 2% of eFCI per annum
Category 3
Category 3: Activity 1 – 5% on Term Loan for 6 years, up to 2% of eFCI per annum; Activity 2 – 7% on Term Loan for 5 years, up to 2% of eFCI per annum
Documents Required
Applicants should keep the following documents ready before starting the application:
The undertaking's registration document under the relevant law and its Industrial Entrepreneur Memorandum as specified by the Government of India.
Land records demonstrating legal possession with a valid non-agriculture permission for industrial use, and the registered purchase / Lease / Rent deed; GIDC estate plots or sheds need the possession letter copy attached.
GPCB Consent to Establish (when applicable).
Detailed Project Report including:
Executive summary
Executive summary
Background
Background
Existing business overview (expansion cases)
Existing business overview (expansion cases)
Land/Shed details
Land/Shed details
Raw material sourcing strategy
Raw material sourcing strategy
Manpower information
Manpower information
Techno-economic viability assessment
Techno-economic viability assessment
Financial analysis - Sanction letter of the term…
Financial analysis
Sanction letter of the term loan issued by financial institution(s)
Board Resolution / Authority Letter / PoA
PAN Cards belonging to the Enterprise and the Authorised Person
GST Registration with the complete set of Annexures
First Sale Bill, applicable after commercial production commences
Audit Report relating to the period prior to expansion
2024-10-01
How to Apply
Offline Application
Applicants can apply for Gujarat Textile Policy: Interest Subsidy through the offline application process outlined below.
Application for Registration:
The unit applies to the Industries Commissioner on…
The unit applies to the Industries Commissioner on the prescribed format with the relevant documents. The deadline is one year from loan disbursement, production start or the policy operative date, whichever is the latest.
Documents are scrutinised and verified in line with…
Documents are scrutinised and verified in line with the prescribed procedure, and the Industrial Commissioner subsequently issues the registration certificate.
Application for Provisional/Final Eligibility Certificate:
Application for Industrial Unit:
MSME Units having GFCI up to INR 10 Crore:
Post-DoCP, these units apply to the General Manager, District Industries Center.
MSME Units having GFCI above INR 10 Crore and up to 50 Crore:
Post-DoCP, these units apply to the MSME Commissioner for a Provisional Eligibility Certificate, within 1 year from DoCP or one year from the issue date of this GR, whichever is later.
Other than MSME Units:
Post-DoCP, registered units of this kind apply to the Industries Commissioner for a Provisional Eligibility Certificate, within 1 year from DoCP or 1 year from the registration certificate issue date, whichever is later.
Contact Us:
Industries Commissionerate
District Industries Center
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.