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 "Power Tariff Subsidy" 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.
Benefits at a glance
| Scheme name | Gujarat Textile Policy: Power Tariff Subsidy (GTPPTS) |
|---|---|
| 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 (link at the end of this page) |
Key facts
| Scheme for | Infra |
|---|---|
| Application mode | Offline |
| Last date | Ongoing (no last date notified) |
| 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
| Activity | Power Tariff Subsidy |
| Activity-1 | INR 1/unit (kWh) Availing power either from DISCOM or Renewable Power through open-access for period of 5 years from DoCP |
| Activity-2 |
| INR 1/unit (kWh) Availing power either from DISCOM or Renewable Power through open-access for period of 5 years from DoCP |
Who qualifies
- 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.
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
- Power consumed from captive power plants (both thermal and renewable) is not eligible.
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 "Power Tariff Subsidy" component?
The "Power Tariff Subsidy" component provides financial relief on power tariffs for industries availing electricity either from DISCOM (Distribution Companies) or through renewable power sources under open access.
Who can apply for this subsidy?
Eligible new industrial units and those undergoing expansion, diversification, or modernization can apply.
What is the amount of financial assistance provided under this subsidy?
The Power Tariff Subsidy provides financial assistance of INR 1 per unit (kWh) of electricity consumed by eligible industrial units.
For how many years is the subsidy available?
The subsidy is available for a period of five years from the Date of Commencement of Production (DoCP).
Can an industrial unit consuming power from its own captive power plant avail of this subsidy?
No, industrial units consuming power from their own captive power plants, whether thermal or renewable, are not eligible for the subsidy.
Does the subsidy apply to electricity sourced from renewable energy?
Yes, the subsidy applies to electricity sourced from DISCOM or renewable energy under open access, but not from a captive renewable power plant.
How is additional power consumption calculated for units undergoing expansion, diversification, or modernization?
Additional power consumption is calculated based on the difference between the new consumption level and the average consumption of the previous year before expansion, diversification, or modernization.
Can an industrial unit claim a subsidy for electricity bills from a previous financial year?
No, the subsidy is applicable only to electricity consumption from the Date of Commencement of Production (DoCP) onwards.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Guidelines ic.gujarat.gov.in (PDF)
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
Explore more
