Gujarat Textile Policy: Assistance to SHG for Job Work

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 to SHG for Job Work" provides financial assistance to Self-Help Groups SHGs engaged in job work. Eligible SHG members can receive payroll assistance and incentives to enhance their financial stability and encourage women& 39;s participation in industrial activities.

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
• Financial Assistance

Eligibility Criteria
1. The SHG must have at least 25 female members.
2. Assistance is available only for female workers of the SHG.
3. The industrial unit must pay ₹5,000/- per month per female worker in addition to the job work charges.
4. The SHG should be engaged in job work for industrial units.

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 to SHG for Job Work" component?
A: The component "Assistance to SHG for Job Work" is a financial assistance program that provides financial support to Self-Help Groups (SHGs) engaged in job work, encouraging women's participation in industrial activities.

Q: Who is eligible to apply for this assistance?
A: Any SHG with at least 25 female members engaged in job work for an industrial unit is eligible to apply.

Q: What financial assistance can an SHG receive under this scheme?
A: An SHG can receive [?]5,000/- per member per month for up to five years, along with 25% of the job work turnover as an incentive.

Q: Is this scheme available for male workers in an SHG?
A: No, this scheme is available only for female workers of the SHG.

Q: Can an SHG involved in independent manufacturing apply for this assistance?
A: No, SHGs engaged in independent manufacturing are not eligible for this assistance.

Q: How is the payroll assistance provided to SHG members?
A: The industrial unit pays [?]5,000/- per female worker to the SHG, and the SHG then transfers the amount directly to the members' bank accounts.

Q: What happens if the industrial unit does not pay ₹5,000/- per member?
A: If the industrial unit fails to pay INR 5,000 per female worker, the payroll assistance will not be reimbursed by the government.

Q: For how long can an SHG avail of this assistance?
A: The payroll assistance is available for a maximum period of 5 years per member.