Gujarat Textile Policy: Assistance for Technology Acquisition

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 Technology Acquisition" provides financial support to industrial units for acquiring appropriate technology from recognized institutions. This initiative helps industries upgrade their product or process technology, ensuring competitiveness and innovation.

Exclusions
• Assistance will not be eligible for purchase of any plant and machinery or equipment.

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
• Financial Assistance: Covers 65% of the technology cost, with a cap of ₹50,00,000/-.
• Royalty Payment: Supports royalty payments for the first 2 years.

Eligibility Criteria
1. The unit must be a new or existing industrial unit.
2. The technology must be acquired from a recognized institution.
3. The unit must obtain prior approval from the Industries Commissionerate within one year of signing the agreement.

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 non-agriculture 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:
• 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 Technology Acquisition" component?
A: The "Assistance for Technology Acquisition" component provides financial support to industrial units for acquiring appropriate technology from recognized institutions.

Q: What is the maximum financial assistance available under the Assistance for Technology Acquisition scheme?
A: The scheme provides financial assistance of up to [?]50,00,000/-, covering 65% of the technology acquisition cost, including royalty payments for the first two years.

Q: Who is eligible to apply for this scheme?
A: Both new and existing industrial units are eligible to apply for assistance under this scheme.

Q: Can an industrial unit use the financial assistance to purchase machinery or equipment?
A: No, the assistance is strictly provided for technology acquisition and cannot be used for purchasing machinery or equipment.

Q: Is prior approval required before acquiring the technology?
A: Yes, an industrial unit must obtain prior approval from the Industries Commissionerate within one year after signing the agreement with the technology provider.

Q: Can an industrial unit acquire patented technology from a foreign company under this scheme?
A: Yes, patented technology acquired from both Indian and foreign companies is eligible for assistance under this scheme.

Q: Does the financial assistance cover royalty payments?
A: Yes, the assistance covers royalty payments for the first 2 years as part of the total technology acquisition cost.