Gujarat Textile Policy: Power Tariff 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 "Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)" is aimed at reducing electricity costs for eligible industrial units. This subsidy provides financial relief on power tariffs for industries availing electricity either from DISCOM (Distribution Companies) or through renewable power sources under open access.

What You Get

As set out by Government of India.

• ActivityPower Tariff SubsidyActivity-1INR 1/unit (kWh) for DISCOM Power or Renewable Power through open-access or drawl of power from group captive renewable energy plant with a cap of INR 15 Cr/Year for period of 5 years from DoCP.Activity-2INR 1/unit (kWh) for DISCOM Power or Renewable Power through open-access or drawl of power from group captive renewable energy plant with a cap of INR 15 Cr/Year for period of 5 years from DoCP.

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.
• New industrial units are eligible for the Power Tariff Subsidy.
• Existing industrial units undergoing expansion, diversification, or modernization are eligible.
• The industrial unit must submit electricity bills in its name.
• The unit must apply within one year from the Date of Commercial Production (DoCP).
• Note: In the case of expansion/diversification/modernization, the subsidy applies only to additional power consumption beyond the previous year’s average.
• 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
• Scheme Guidelines