Gujarat Textile Policy: Assistance to SHG for Job Work (Fiscal Incentives to Labour Intensive Unit)

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
• SHG is independently engaged in manufacturing (not doing job work) as defined under this Resolution, then it will not be eligible for the above incentives.

Definitions
Self Help Group
(Source: https://ic.gujarat.gov.in/documents/pagecontent/Gujarat%20Textile%20Policy_2024.pdf)

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 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 attachments.
• 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 (Fiscal Incentives to Labour Intensive Unit)" component?
A: The component 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's participation in industrial activities.

Q: What is the maximum payroll assistance an SHG member can receive under this scheme?
A: Each eligible SHG member can receive payroll assistance of up to [?]5,000/- per month for a period of 5 years, subject to 25% of the job work value turnover.

Q: Is training assistance available under this scheme?
A: Yes, each SHG member is eligible to receive [?]5,000/- per month as training assistance for a period of 3 months.

Q: Are SHGs engaged in manufacturing eligible for this scheme?
A: No, SHGs engaged in independent manufacturing activities are not eligible for this scheme. Only SHGs performing job work for industrial units can apply.

Q: What will happen if the industrial unit does not pay ₹5,000 per month per female worker?
A: If the industrial unit fails to pay the required amount, it will not be eligible to receive payroll assistance under the scheme.

Q: Can male members of an SHG receive financial assistance under this scheme?
A: No, this scheme is exclusively designed to support female members of SHGs.

Q: Can an SHG receive both training assistance and payroll assistance?
A: Yes, eligible SHGs can receive both types of assistance under this scheme.

Q: Can an SHG with fewer than 25 female members apply for the scheme?
A: No, an SHG must have at least 25 female members to be eligible for financial assistance.