About this business scheme
The "Gujarat Textile Policy" introduced by the Industries and Mines Department aims to create a vibrant Textile Sector ecosystem and generate enormous employment opportunities in the State.
The "Gujarat Textile Policy" is an umbrella scheme introduced by the Industries and Mines Department, Gujarat. It aimed at augmenting investments in the textile sector and strengthening the textile value chain across each sub-sector, while also focusing on strengthening the garments and apparel as well as technical textiles industry. Effective from October 1st, 2024 to September 29th, 2029, this initiative focuses on reducing the carbon footprint and promoting green growth, thereby making the sector globally competitive and environmentally sustainable.
The component "Interest Subsidy" provides financial assistance in the form of a credit-linked interest subsidy for eligible industrial activities. This subsidy helps reduce the financial burden on industrial units by reimbursing a portion of the interest paid on term loans for Gross Fixed Capital Investment.
Benefits at a glance
| Scheme name | Gujarat Textile Policy: Interest Subsidy (GTCIS) |
|---|---|
| Launched by | Industries and Mines Department |
| Launch year | 2024 |
| Benefit type | Cash (money paid to your bank account) |
| Category | Business |
| Level / State | State · Gujarat |
| Official portal | ic.gujarat.gov.in (see References at the end) |
Key facts
| Scheme for | Infra |
|---|---|
| Application mode | Offline |
| Last date | Not given in the official listing |
| DBT (direct bank transfer) | No |
| Age | 18 to 60 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 18 to 60 years
- 📝Offline
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
Financial Assistance:
| Category of Taluka | Activity 1 | Activity 2 |
| Category 1 & PM MITRA Park | 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum | 7% on Term Loan for 7 years; Maximum 2% of eFCI per annum |
| Category 2 | 7% on Term Loan for 8 years; Maximum 2.5% of eFCI per annum | 7% on Term Loan for 7 years; Maximum 2% of eFCI per annum |
| Category 3 | 5% on Term Loan for 6 years; Maximum 2% of eFCI per annum | 7% on Term Loan for 5 years; Maximum 2% of eFCI per annum |
Who qualifies
- Industrial units must have taken a sanctioned term loan for Gross Fixed Capital Investment.
- The loan disbursement date must be on or after 01/01/2024 for units under implementation as of 01/10/2024.
- The unit must apply within one year from the Date of Commercial Production (DoCP).
- The unit must be in regular repayment of installments and interest.
- The unit must bear at least 2% interest on the term loan.
Eligible Activities:
Activity 1:
- Garments, Apparel & Made-ups, Technical Textiles Activity (including Composite Unit)
Activity 2:
- Weaving (with or without preparatory), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning to manufacture yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF) (excluding Spinning activity of Cotton and Synthetic Filament Yarn).
Who is not eligible
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Papers to keep ready
- Document of registration of the industrial undertaking, as applicable under law, and the Industrial Entrepreneur Memorandum, as prescribed by the Government of India.
- Documents related to legal possession of land with valid nonagriculture permission for industrial use, and registered purchase / Lease / Rent deed. If the plot or shed is in GIDC estate, a copy of the possession letter should be attached.
- Consent to Establish from GPCB, if applicable.
- Detailed Project Report containing the following:
- Executive summary
- Background
- Details of existing business (in case of expansion)
- Land/Shed details
- Raw material procurement strategy
- Manpower details
- Techno-economic viability assessment
- Financial analysis
- Term loan sanction letter from financial institution(s)
- Board Resolution / Authority Letter / PoA
- PAN Card of Enterprise and Authorized Person
- GST Registration with all Annexures
- First Sale Bill ( In case of Commercial Production is commenced)
- Audit Report (Before initiation of Expansion)
Registration walkthrough
Offline
Application for Registration:
Step 1: The application has to be made to the Industries Commissioner in the prescribed format along with the following documents within one year from loan disbursement, production start, or policy operative date (whichever is later).
Step 2: On receipt of the application and after the scrutiny and verification of relevant documents as per the procedure prescribed, registration certificate will be issued by the Industrial Commissioner.
Application for Provisional/Final Eligibility Certificate:
Application for Industrial Unit:
- MSME Units having GFCI up to INR 10 Crore: After DoCP, the Industrial Unit shall submit an application to the General Manager, District Industries Center.
- MSME Units having GFCI above INR 10 Crore and up to 50 Crore: After DoCP, the Industrial Unit shall submit an application to MSME Commissioner for Provisional Eligibility Certificate within 1 year from DoCP or within one year from the date of issuance of this GR, whichever is later.
- Other than MSME Units: After DoCP, the Industrial Unit, having registration shall submit an application for Provisional Eligibility Certificate to the Industries Commissioner within 1 year from DoCP or within 1 year from the date of issuance of the registration certificate, whichever is later.
Contact Us:
Important dates
| Launch / start | 01 Oct 2024 |
|---|
Terms used in this scheme
- Gross Fixed Capital Investment
Gross Fixed Capital Investment means investment made in Building, Plant and Machinery, Electrification, Tools and Equipment, Accessories, Utilities, Effluent Treatment Plant and other assets, excluding land, required for manufacturing the end product/s.
Only assets acquired and paid for during Eligible Investment Period of the project under this Policy shall be considered as the Gross Fixed Capital Investment (GFCI) for the purpose to determine the eligible Fixed Capital Investment under this Policy.
- Eligible Fixed Capital Investment
Eligible Fixed Capital Investment (eFCI) means the following components of investment made during the Eligible Investment Period as per para 3.20 of this GR.
New Building:
A new building means a new building constructed, or acquired as a new and unused building, for the project including administrative building. The cost of the new building shall be calculated as per the actual cost or the Schedule of Rates (SOR) of the relevant year of the R&B Department of the State Government, whichever is lower. Building acquired under lease or on rental basis, except GIDC sheds, will not be considered as Eligible Fixed Capital Investment. No cost incurred on acquisition of old building, or the expenditure incurred on repairing a building, will be considered as Eligible Fixed Capital Investment. Dormitory Housing facilities set up for workers and staff of Industrial Units shall also be eligible.
Plant and Machinery:
Plant and Machinery means new plant and machinery, utilities, dies and moulds, including cost of transportation, foundation, erection, installation and electrification, capitalized under the head of plant and machinery. The electrification cost will include the cost of substation and transformer installed by the Industrial Undertaking at the site.
Plant and machinery shall include:
- Plant for captive power generation through renewable.
- Plant for pollution control measures, including facility for collection, treatment, disposal of effluent or solid/ hazardous waste, Zero Liquid Discharge Plant (ZLD).
- Imported second-hand machinery not more than ten years old and with a residual life of minimum ten years, duly certified by the competent authority such as Chartered Engineer.
Investments towards components other than Plant and Machinery shall be limited only up to 20% of eligible FCI.
Fixed Capital Investment at the workplace of SHG:
Building/Shed constructed at the workplace of SHG
Plant and Machinery installed at the workplace of SHG including installation and electrification.
This investment will be considered as a part of the project, if a legally enforceable job work contract is executed with the SHG for at least a period of five years.
- Ineligible Capital Expenditure/Assets
The following expenditure shall not be considered for calculating the Eligible Fixed Capital Investment:
- Land and land development cost
- Working Capital
- Goodwill
- Royalty
- Preliminary and Pre-operative expenses
- Indigenous second-hand Plant & Machinery
- Interest Capitalized
- Rented or leased property
- Anything which has not been included in the eligible FCI.
- Term Loan
Term Loan means loan sanctioned by the financial institutions / Banks / External commercial borrowings sanctioned by overseas institutions (except NBFCs) for the setting up of the project by an Industrial Undertaking. However, only the amount actually disbursed during the Eligible Investment Period against the sanctioned Term Loan will be considered for the incentives under this Policy.
- Date of Commercial Production (DoCP)
In case of New Industrial Unit, the DoCP shall be the date of First Sale Bill of the product/s for which the project has been set up. In case of Expansion / Diversification / Modernization, the DoCP shall be the date of First Sale Bill of the product/s being manufactured by Expansion/ Diversification / Modernization Project.
Frequently asked questions
What is the "Gujarat Textile Policy"?
The "Gujarat Textile Policy" is a government initiative aimed at strengthening the textile sector by promoting investment, sustainability, employment generation, and value chain integration.
What is the operative period of the "Gujarat Textile Policy"?
The operative period of the Gujarat Textile Policy 2024 is from October 1, 2024, to September 30, 2029, covering a span of five years.
How does the policy contribute to employment generation?
The policy focuses on creating a robust textile ecosystem by attracting investments, encouraging MSMEs, supporting women entrepreneurs, and expanding production capacities, thereby generating employment opportunities.
What incentives are provided under the policy?
The policy offers financial assistance, infrastructure support, and subsidies to strengthen textile manufacturing, encourage investment, and support MSMEs, startups, and large enterprises.
What is the objective of the "Interest Subsidy" component?
The component "Interest Subsidy" is a financial assistance program that provides credit-linked interest subsidies to eligible industrial units to reduce their loan repayment burden.
Who is eligible to apply for this subsidy?
Any industrial unit that has taken a sanctioned term loan for Gross Fixed Capital Investment and meets the eligibility criteria specified in the scheme guidelines is eligible to apply.
How much subsidy is provided under this scheme?
The subsidy amount varies based on the category and location of the industrial activity, ranging from 5% to 7% of the interest on the term loan.
For how many years can an industrial unit avail of the subsidy?
An industrial unit can avail of the interest subsidy for a period ranging from 5 to 8 years, depending on its category and location.
When should an industrial unit apply for the Interest Subsidy?
The industrial unit must apply within one year from the Date of Commercial Production (DoCP). after obtaining the Eligibility Certificate.
What happens if an industrial unit defaults on loan repayment?
If an industrial unit defaults on loan repayment, it will not be eligible to receive the subsidy for the default period, and that period will be deducted from the total eligible subsidy duration.
Does the Interest Subsidy cover penal interest or additional bank charges?
No, the subsidy is provided only on regular interest payments and installments paid to the financial institution. Penal interest and additional charges are not covered.
Can an industrial unit avail of interest subsidies from both the State and Central Government?
Yes, an industrial unit can avail of subsidies from both governments; however, the total subsidy amount will be adjusted to ensure that the unit bears at least 2% interest on the term loan.
Is proof of loan repayment required for claiming the subsidy?
Yes, the industrial unit must submit proof of regular installment and interest payments to the financial institution in order to claim the subsidy.
If an industrial unit has multiple term loans, which disbursement date will be considered for eligibility?
If multiple term loans are availed from different financial institutions, the first disbursement date from any one financial institution will be considered for determining the subsidy eligibility.
References and official sources
Apply only on the official portal. Nothing is applied for on this site, and applying is free.
- Guidelines (PDF) ic.gujarat.gov.in
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The details on this page are from the official listing and have not been rewritten or reviewed by our team yet. Confirm them on the official portal before applying.
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