Gujarat Textile Policy: Interest Subsidy
Gujarat Textile Policy: Interest Subsidy
The “Gujarat Textile Policy” (गुजरात वस्त्र नीति), initiated by the Industries and Mines Department, is designed to cultivate a robust ecosystem within the Textile Sector, thereby fostering substantial employment opportunities throughout the state of Gujarat. This comprehensive policy aims to boost investments across the textile industry while enhancing the entire value chain, particularly in garments, apparel, and technical textiles.
Overview of the Scheme
Launched with an effective timeline from October 1, 2024 to September 29, 2029, the “Gujarat Textile Policy” seeks to diminish the carbon footprint and encourage green growth initiatives, ultimately aiming to elevate the sector’s global competitiveness while ensuring environmental sustainability. A key component of this policy is the “Interest Subsidy,” which offers credit-linked financial assistance to eligible industrial activities, significantly alleviating the financial pressures on industrial units by reimbursing a portion of the interest incurred on term loans related to Gross Fixed Capital Investment (GFCI).
Benefits of the Interest Subsidy
The financial assistance provided through the Interest Subsidy varies based on the category of taluka and the activity undertaken:
| Category of Taluka | Activity 1 | Activity 2 |
|---|---|---|
| Category 1 & PM MITRA Park | 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum | 7% on Term Loan for 7 years; Maximum 2% of eFCI per annum |
| Category 2 | 7% on Term Loan for 8 years; Maximum 2.5% of eFCI per annum | 7% on Term Loan for 7 years; Maximum 2% of eFCI per annum |
| Category 3 | 5% on Term Loan for 6 years; Maximum 2% of eFCI per annum | 7% on Term Loan for 5 years; Maximum 2% of eFCI per annum |
Eligibility Criteria
- Industrial units must have obtained a sanctioned term loan for GFCI.
- The loan disbursement must occur on or after January 1, 2024 for units operational by October 1, 2024.
- Applications must be submitted within one year from the Date of Commercial Production (DoCP).
- Units need to be in regular repayment of both principal and interest.
- Industrial units must bear at least 2% interest on the term loan.
Eligible Activities
- Activity 1: Garments, Apparel & Made-ups, Technical Textiles (including Composite Unit)
- Activity 2: Weaving (with or without preparatory), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery, and MMF Spinning for yarn production from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF) (excluding Cotton and Synthetic Filament Yarn spinning).
Application Process
How to Apply Offline
The application process comprises two main stages:
-
Application for Registration:
- Submit the application to the Industries Commissioner using the prescribed format along with necessary documents within one year from loan disbursement, commencement of production, or the policy operative date, whichever is applicable.
- Upon receiving the application, the Industrial Commissioner will scrutinize and verify the documents before issuing a registration certificate.
-
Application for Provisional/Final Eligibility Certificate:
- For MSME Units with GFCI up to INR 10 Crore: Submit an application to the General Manager, District Industries Center post-DoCP.
- For MSME Units with GFCI above INR 10 Crore and up to 50 Crore: Submit to MSME Commissioner within one year from DoCP or the issuance date of this GR, whichever comes later.
- For Non-MSME Units: After DoCP, submit an application for a Provisional Eligibility Certificate to the Industries Commissioner within the stipulated timeframe.
Contact Information
For further inquiries, contact the:
- Industries Commissionerate
- District Industries Center
Understanding Gross Fixed Capital Investment (GFCI)
GFCI includes investments made in buildings, plant and machinery, electrification, tools and equipment, accessories, utilities, and effluent treatment plants, excluding land, necessary for manufacturing end products. Only assets procured and paid for during the eligible investment period of the project under this policy will be accounted as GFCI.
Components of Eligible Fixed Capital Investment (eFCI)
eFCI comprises:
- New Building: Refers to new constructions or acquisitions designated for project use. Costs will be calculated based on actual expenses or the Schedule of Rates (SOR) from the relevant year.
- Plant and Machinery: Encompasses new machinery, utilities, dies, and molds, including transportation, foundation, installation, and electrification costs.
Eligibility Criteria
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.
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).
Benefits
Financial Assistance:
Category of TalukaActivity 1Activity 2
Category 1
& PM MITRA Park7% on Term Loan for 8 years; Maximum 3% of eFCI per annum 7% on Term Loan for 7 years; Maximum 2% of eFCI per annum
Category 2
7% on Term Loan for 8 years; Maximum 2.5% of eFCI per annum 7% on Term Loan for 7 years; Maximum 2% of eFCI per annum
Category 3
5% on Term Loan for 6 years; Maximum 2% of eFCI per annum 7% on Term Loan for 5 years; Maximum 2% of eFCI per annum
Application Process
Apply OfflineApplication 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:
Industries Commissionerate
District Industries Center
References & Official Links
Scheme Details
| Full Name | Gujarat Textile Policy: Interest Subsidy |
| Short Title | GTCIS |
| Level | State |
| Scheme For | Infra |
| Categories | Business & Entrepreneurship |
| States | Gujarat |
| Gender | All |
| Age Range | 2 — 3 years |
| Area | Both |
| Source | www.myscheme.gov.in ↗ |
Deepika Raikwar
Deepika Raikwar is an Education Analyst and scholarship researcher who focuses on public welfare and merit-based scholarships. She simplifies complex eligibility rules, deadlines, and application processes to help common people access reliable funding opportunities worldwide.
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