Gujarat Textile Policy: Payroll Assistance (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 "Payroll Assistance Fiscal Incentives to Labour Intensive Unit " 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
• <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)

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

Benefits
• <br>
• **Activity****Payroll Assistance**Garment, Apparel&amp;amp;amp;amp; Made-ups (including Composite Unit) ₹5,000/- per Female Worker &amp;amp;amp;amp; ₹4,000/- per Male Worker per month for a period of 10 yearsTechnical Textile (including Composite Unit) ₹3,000/- per Female Worker &amp;amp;amp;amp; ₹2,000 per Male Worker per month for a period of 10 years<br>

Eligibility Criteria
1. The industrial unit must be recognized as a Labour Intensive Unit.
2. The scheme is applicable to industrial units in the Garment, Apparel &amp; Made-ups, and Technical Textile sectors (including Composite Units).
3. The workers must be domiciled in Gujarat and registered under the EPF scheme.
4. 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 (Fiscal Incentives to Labour Intensive Unit)" component?
A: The objective of this component is to provide financial assistance to labour-intensive industrial units in Gujarat, supporting them in covering the wages of workers and promoting employment in key sectors.

Q: Which industries are eligible for financial assistance under this scheme?
A: The scheme applies to industrial units operating in Garments, Apparel, Made-ups, and Technical Textiles (including Composite Units).

Q: What type of financial support is provided under this scheme?
A: The scheme offers monetary assistance to industrial units for the wages of their workers to encourage employment generation.

Q: Is EPF registration mandatory for availing of this benefit?
A: Yes, EPF registration is mandatory, as only workers registered under the Employees' Provident Fund (EPF) scheme are considered eligible for payroll assistance.

Q: Can an industrial unit employ workers from other states under this scheme?
A: No, only workers domiciled in Gujarat are eligible for payroll assistance under this scheme.

Q: How much payroll assistance is given to workers in the Garment, Apparel & Made-ups sector?
A: In the Garment, Apparel & Made-ups (including Composite Units) sector, the assistance is [?]5,000/- per month for each female worker and [?]4,000/- per month for each male worker for a period of 10 years.

Q: What is the amount of assistance provided to workers in the Technical Textile sector?
A: In the Technical Textile (including Composite Units) sector, the assistance is [?]3,000/- per month for each female worker and [?]2,000/- per month for each male worker for a period of 10 years.