Gujarat Textile Policy: Capital Subsidy

About This Scheme

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 "Capital Subsidy" provides financial assistance to eligible industrial units through subsidies on their capital expenditures. The subsidy is granted based on the category of the location and the type of activity undertaken.

What You Get

As set out by Government of India.

• Financial Assistance:
• Category of TalukaActivity 1Activity 2Category 1 & PM MITRA Park35% of eFCI, Maximum ₹100,00,00,000/-20% of eFCI, Maximum ₹50,00,00,000/-Category 230% of eFCI, Maximum ₹100,00,00,000/-18% of eFCI, Maximum ₹50,00,00,000/-Category 320% of eFCI, Maximum ₹50,00,00,000/-10% of eFCI, Maximum ₹40,00,00,000/-
• Note:
• Eligible Fixed Capital Investment: Eligible Fixed Capital Investment (eFCI) means the following components of investment made during the Eligible Investment Period.- If Industrial Unit is availing Capital Subsidy under any scheme of Central Government, then total quantum of Capital Subsidy from State and Central Government, in any case shall not exceed the total term loan amount disbursed.

Am I Eligible?

You may be eligible if all of these are true for you.

• The industrial unit must have availed a Term Loan for the project.
• The unit must commence commercial production before applying for subsidy disbursement.
• The unit must apply within one year from the Date of Commercial Production (DoCP).
• The total subsidy received (State + Central) should not exceed the total term loan amount disbursed.
• Garments, Apparel & Made-ups, Technical Textiles Activity (including Composite Unit)
• 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).

Final eligibility is decided by the government department handling this scheme.

Who Cannot Apply?

Applications are commonly rejected for these reasons, so check them before you start.

• The Industrial Unit will not be eligible for Capital Subsidy under this Policy if, the Term Loan is sanctioned after one year from Date of Commercial Production (DoCP).

Required Documents

myScheme, Government of India does not list the documents for this scheme. The department's own website often does - check the official links below before you set off, or ask at the office where you apply.

How to Apply

1. 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).
2. 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.

Official Documents and Links

Published by the department that runs this scheme.

• Guidelines
• Scheme Guidelines