Gujarat Textile Policy: Interest Subsidy (Fiscal Incentives to Labour Intensive Unit)

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 "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.

What You Get

As set out by Government of India.

• Financial Assistance:
• Category of TalukaActivity 1Activity 2Category 1 & PM MITRA Park7% on Term Loan for 8 years; Maximum 3% of eFCI per annum 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum Category 27% on Term Loan for 8 years; Maximum 3% of eFCI per annum 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum Category 37% on Term Loan for 8 years; Maximum 3% of eFCI per annum 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum

Am I Eligible?

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

• The industrial unit must be recognized as a Labour Intensive Unit.
• 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.
• 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.

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
• Category Of Taluka
• Scheme Guidelines