Gujarat Textile Policy: Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)
Category: Business & Entrepreneurship
Level: State | State: Gujarat

Details:
The &quot;Gujarat Textile Policy&quot; 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 &quot;Capital Subsidy (Fiscal Incentives to Labour Intensive Unit)&quot;  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.

Benefits:
Financial Assistance:
Category of Taluka
Activity 1
Activity 2
Category 1 & PM MITRA Park
35%  of eFCI, Maximum ₹150,00,00,000/-
25%  of eFCI, Maximum ₹150,00,00,000/-
Category 2
30%  of eFCI, Maximum ₹150,00,00,000/-
25%  of eFCI, Maximum ₹150,00,00,000/-
Category 3
25%  of eFCI, Maximum ₹150,00,00,000/-
25%  of eFCI, Maximum ₹150,00,00,000/-

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.

Eligibility Criteria:
1. The industrial unit must be recognized as a Labour Intensive Unit.
   1. The industrial unit must have availed a Term Loan for the project.
   1. The unit must commence commercial production before applying for subsidy disbursement.
   1. The unit must apply within one year from the Date of Commercial Production (DoCP).
   1. The total subsidy received (State + Central) should not exceed the total term loan amount disbursed.

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&gt; **Eligible Activities:**

**Activity 1:**

  - Garments, Apparel &amp;amp; Made-ups, Technical Textiles Activity (including Composite Unit)

**Activity 2:**

  - Weaving (with or without preparatory), Knitting, Dyeing &amp;amp; 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).

&gt; **Labour Intensive Unit:**

Labour Intensive Unit means a new industrial unit that provides minimum employment to 4000 (four thousand) persons duly registered under EPF scheme, out of which minimum female employee should be at least 1000 (one thousand). The existing unit that carrying out expansion/diversification of activities , during the operative period of the scheme and provides totally new employment to minimum 4000 (four thousand) persons duly registered under EPF scheme, out of which minimum female employee should be at least 1000 (one thousand).