Gujarat Textile Policy: Assistance for Saving in Consumption of Energy and Water

Description
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 "Assistance for Saving in Consumption of Energy and Water" provides financial assistance to existing and new industrial units that take steps to reduce energy and water consumption. It covers part of the cost for energy/water audits and the purchase of recommended equipment to encourage efficient resource usage.

Exclusions
• <br>

Definitions
Gross Fixed Capital Investment
(Source: https://ic.gujarat.gov.in/documents/pagecontent/Gujarat%20Textile%20Policy_2024.pdf)

Eligible Fixed Capital Investment
(Source: https://ic.gujarat.gov.in/documents/pagecontent/Gujarat%20Textile%20Policy_2024.pdf)

Ineligible Capital Expenditure/Assets
(Source: https://ic.gujarat.gov.in/documents/pagecontent/Gujarat%20Textile%20Policy_2024.pdf)

Term Loan
(Source: https://ic.gujarat.gov.in/documents/pagecontent/Gujarat%20Textile%20Policy_2024.pdf)

Date of Commercial Production (DoCP)
(Source: https://ic.gujarat.gov.in/documents/pagecontent/Gujarat%20Textile%20Policy_2024.pdf)

Benefits
• **Reimbursement for Energy/Water Audit:** 75% of the cost of an energy or water audit conducted by a recognized institution/consultant, up to a maximum of ₹50,000/-, will be reimbursed once during the policy period. - **Equipment Cost Assistance:** 25% of the cost of equipment recommended by the auditing authority, up to a maximum of ₹20,00,000/-, will be provided as one-time assistance.

Eligibility Criteria
1. - Both existing and new industrial units can apply.
2. - The unit must take specific actions to reduce energy and water consumption.
3. - Minimum 10% reduction in energy or water consumption is required previous 12 months before audit to be eligible for equipment cost assistance.

Required Documents
• 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)

Frequently Asked Questions
Q: What is the "Gujarat Textile Policy"?
A: The "Gujarat Textile Policy" is a government initiative aimed at strengthening the textile sector by promoting investment, sustainability, employment generation, and value chain integration.

Q: What is the operative period of the "Gujarat Textile Policy"?
A: The operative period of the Gujarat Textile Policy 2024 is from October 1, 2024, to September 30, 2029, covering a span of five years.

Q: How does the policy contribute to employment generation?
A: 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.

Q: What incentives are provided under the policy?
A: The policy offers financial assistance, infrastructure support, and subsidies to strengthen textile manufacturing, encourage investment, and support MSMEs, startups, and large enterprises.

Q: What is the objective of the "Assistance for Saving in Consumption of Energy and Water" component?
A: The "Assistance for Saving in Consumption of Energy and Water" component provides financial assistance to existing and new industrial units that take steps to reduce energy and water consumption.

Q: Who is eligible for assistance under this component?
A: Any existing or new industrial unit that takes steps to save energy and water consumption is eligible for assistance.

Q: What percentage of the energy/water audit cost can be reimbursed?
A: An industrial unit can receive reimbursement for 75% of the energy or water audit cost, up to a maximum of [?]50,000/-, once during the policy period.

Q: What is the maximum financial assistance available for purchasing recommended equipment?
A: An industrial unit can receive up to 25% of the cost of the recommended equipment, with a maximum limit of [?]20,00,000/- as one-time assistance.

Q: What is the minimum reduction required in energy or water consumption to qualify for equipment cost assistance?
A: To qualify, an industrial unit must achieve a minimum 10% reduction in average monthly energy or water consumption over the past 12 months before the audit.

Q: What happens if the energy or water consumption increases after implementing efficiency measures?
A: If consumption increases due to higher production, the claim will be reviewed separately by a committee constituted by SLAC.