Sarkari Yojana

Gujarat Textile Policy: Power Tariff Subsidy

Gujarat
Quick Summary: New and expanding textile units in Gujarat get a power tariff subsidy of INR 1 per unit (kWh) on DISCOM or open-access renewable electricity for 5 years from the date of commercial production.

About Gujarat Textile Policy: Power Tariff Subsidy

An umbrella scheme of the Industries and Mines Department, Gujarat, the “Gujarat Textile Policy” looks to expand textile investment, strengthen the value chain in every sub-sector, and lift the garments and apparel and technical textiles industries in particular. It applies from October 1st, 2024 to September 29th, 2029 and centres on green growth and carbon footprint reduction, so that the sector can be globally competitive and environmentally sustainable. The “Power Tariff Subsidy” component lowers electricity costs for qualifying industrial units. It gives relief on power tariffs to industries that draw electricity from DISCOM (Distribution Companies) or from renewable power sources under open access.

Scheme Overview

Government Level

State Government

Eligible Entity

Business Entity

Launch / Open Date

01 Oct 2024

Scheme Details

Eligibility

Eligibility Requirements

To qualify for Gujarat Textile Policy: Power Tariff Subsidy, applicants must satisfy the following conditions:

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Newly established industrial units can claim the Power…

Newly established industrial units can claim the Power Tariff Subsidy.

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Units already in existence qualify when they undertake…

Units already in existence qualify when they undertake expansion, diversification or modernisation.

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Electricity bills submitted must be in the unit's…

Electricity bills submitted must be in the unit's own name.

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The claim must be filed within one year…

The claim must be filed within one year of the Date of Commercial Production (DoCP). Note: For expansion/diversification/modernisation, only the extra power consumed above the previous year's average attracts the subsidy. Eligible Activities: Activity 1:
Garments, Apparel & Made-ups, Technical Textiles Activity (Composite Units covered) Activity 2:
Weaving (with or without preparatory stages), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning that makes yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF), with Spinning of Cotton and Synthetic Filament Yarn excluded.

Applicants must meet all of the above conditions to be considered eligible for this scheme.
Benefits

Benefits Provided

Gujarat Textile Policy: Power Tariff Subsidy provides the following benefits to eligible applicants:

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Activity-1:

Power Tariff Subsidy of INR 1/unit (kWh) on power taken from DISCOM or Renewable Power via open-access, for 5 years from DoCP

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Activity-2:

Power Tariff Subsidy of INR 1/unit (kWh) on power taken from DISCOM or Renewable Power via open-access, for 5 years from DoCP

Benefit amounts and conditions may vary by category — refer to the official scheme guidelines for exact figures applicable to your case.
Documents Required

Documents Required

Applicants should keep the following documents ready before starting the application:

The legally required registration of the industrial undertaking, accompanied by the Industrial Entrepreneur Memorandum per Government of India norms.
Documents proving legal possession of land holding valid non-agriculture permission for industrial use, plus the registered purchase / Lease / Rent deed. Possession letter copy is mandatory for a GIDC estate plot or shed.
GPCB-issued Consent to Establish, if applicable.
Detailed Project Report presenting:

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Executive summary

Executive summary

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Background of the venture

Background of the venture

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Existing business details (for expansions)

Existing business details (for expansions)

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Land/Shed details

Land/Shed details

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Raw material procurement strategy

Raw material procurement strategy

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Manpower details

Manpower details

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Techno-economic viability assessment

Techno-economic viability assessment

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Financial analysis - The term loan sanction letter…

Financial analysis
The term loan sanction letter from financial institution(s)
Board Resolution / Authority Letter / PoA
PAN Card (Enterprise and Authorised Person)
GST Registration with Annexures in full
First Sale Bill, if commercial production has commenced
Audit Report pertaining to the pre-expansion period

Ensure all documents are valid and, where required, duly attested before submitting your application.
Important Dates

2024-10-01

How to Apply

Offline Application

Applicants can apply for Gujarat Textile Policy: Power Tariff Subsidy through the offline application process outlined below.

Application for Registration:

1️⃣

Apply in the prescribed format to the Industries…

Apply in the prescribed format to the Industries Commissioner with all required documents; the time limit is one year from loan disbursement, production start or the policy operative date, whichever is latest.

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On scrutiny and verification of the documents through…

On scrutiny and verification of the documents through the prescribed procedure, 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: Such units should, after DoCP, file their application with the General Manager, District Industries Center.
MSME Units having GFCI above INR 10 Crore and up to 50 Crore: Such units should, after DoCP, file with the MSME Commissioner for a Provisional Eligibility Certificate within 1 year from DoCP or one year from issuance of this GR, whichever is later.
Other than MSME Units: Such registered units should, after DoCP, file with the Industries Commissioner for a Provisional Eligibility Certificate within 1 year from DoCP or 1 year from issuance of the registration certificate, whichever is later. Contact Us: Industries Commissionerate District Industries Center

Ensure all required documents are ready before starting the application process.

Exclusions / Who Is Not Eligible

- Power consumed from captive power plants (both thermal and renewable) is not eligible.

Official Application & Website

Verify the latest eligibility, dates and instructions before applying.

Official Sources & References