Gujarat Textile Policy: Payroll Assistance

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 "Payroll Assistance" provides financial support to industrial units by offering monetary assistance for the wages of workers. This scheme aims to promote employment and encourage industries in Gujarat, particularly in sectors like Garments, Apparel, Made-ups, and Technical Textiles, including Composite Units.

Exclusions
• An eligible Industrial Unit that has availed EPF reimbursement under any scheme of the Central / State Government, or any agency of the Central/ State Government for any period shall not be eligible for Payroll Assistance under this Policy for that period.

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 scheme is applicable to industrial units in the Garment, Apparel & Made-ups, and Technical Textile sectors (including Composite Units).
2. The workers must be domiciled in Gujarat and registered under the EPF scheme.
3. The unit must apply within one year from the Date of Commercial Production (DoCP).

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:
• 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 "Payroll Assistance" component?
A: The "Payroll Assistance" component is a financial support initiative designed to help industrial units in Gujarat manage employee wages, particularly in the Garment, Apparel, Made-ups, and Technical Textile sectors, including Composite Units.

Q: Which industries are eligible for this scheme?
A: The scheme is applicable to industries engaged in Garment, Apparel, Made-ups, and Technical Textile manufacturing, including Composite Units.

Q: What is the amount of financial assistance provided under this scheme?
A: Industrial units in the Garment, Apparel & Made-ups sector receive [?]5,000/- per female worker and [?]4,000/- per male worker per month. Units in the Technical Textile sector receive [?]3,000/- per female worker and [?]2,000/- per male worker per month.

Q: How long is the financial assistance provided to eligible industrial units?
A: Eligible industrial units receive financial assistance for a period of 5 years from the Date of Commencement of Production (DoCP).

Q: Are workers from other states eligible for this scheme?
A: No, only workers who are domiciled in Gujarat and registered under the EPF scheme are eligible for Payroll Assistance.

Q: Can an industrial unit that has received EPF reimbursement from another scheme apply for Payroll Assistance?
A: No, an industrial unit that has already availed EPF reimbursement under any Central or State Government scheme for the same period is not eligible for Payroll Assistance under this policy.