Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)
Industries and Mines Department
Last updated:
Key dates and updates
Important milestones for this scheme. Use official links to verify before you apply.
| Milestone | Date |
|---|---|
| Scheme launch |
Overview
The "Gujarat Textile Policy" introduced by the Industries and Mines Department aims to create a vibrant Textile Sector ecosystem and generate enormous employment opportunities in the State.
Details
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 "Power Tariff Subsidy Fiscal Incentives to Labour Intensive Unit " is aimed at reducing electricity costs for eligible industrial units. This subsidy provides financial relief on power tariffs for industries availing electricity either from DISCOM Distribution Companies or through renewable power sources under open access.
Exclusions
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Definitions
Gross Fixed Capital Investment
Eligible Fixed Capital Investment
Ineligible Capital Expenditure/Assets
Term Loan
Date Of Commercial Production (DoCP)
Benefits
• ActivityPower Tariff SubsidyActivity-1INR 1/unit (kWh) for DISCOM Power or Renewable Power through open-access or drawl of power from group captive renewable energy plant with a cap of INR 15 Cr/Year for period of 5 years from DoCP.Activity-2INR 1/unit (kWh) for DISCOM Power or Renewable Power through open-access or drawl of power from group captive renewable energy plant with a cap of INR 15 Cr/Year for period of 5 years from DoCP.
Eligibility Criteria
1. The industrial unit must be recognized as a Labour Intensive Unit.
2. New industrial units are eligible for the Power Tariff Subsidy.
3. Existing industrial units undergoing expansion, diversification, or modernization are eligible.
4. The industrial unit must submit electricity bills in its name.
5. The unit must apply within one year from the Date of Commercial Production (DoCP).
6. **Note:** In the case of expansion/diversification/modernization, the subsidy applies only to additional power consumption beyond the previous year’s average.
7. > **Eligible Activities:**
8. **Activity 1:**
9. - Garments, Apparel &amp; Made-ups, Technical Textiles Activity (including Composite Unit)
10. **Activity 2:**
11. - Weaving (with or without preparatory), Knitting, Dyeing &amp; Processing, Texturising, Twisting, Embroidery and MMF Spinning to manufacture yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF) (excluding Spinning activity of Cotton and Synthetic Filament Yarn).
12. &amp;gt; **Labour Intensive Unit:**
13. Labour Intensive Unit means a new industrial unit that provides minimum employment to 4000 (four thousand) persons duly registered under EPF scheme, out of which minimum female employee should be at least 1000 (one thousand). The existing unit that carrying out expansion/diversification of activities , during the operative period of the scheme and provides totally new employment to minimum 4000 (four thousand) persons duly registered under EPF scheme, out of which minimum female employee should be at least 1000 (one thousand).
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)
Eligibility Criteria
The industrial unit must be recognized as a Labour Intensive Unit.
New industrial units are eligible for the Power Tariff Subsidy.
Existing industrial units undergoing expansion, diversification, or modernization are eligible.
The industrial unit must submit electricity bills in its name.
The unit must apply within one year from the Date of Commercial Production (DoCP).
**Note:** In the case of expansion/diversification/modernization, the subsidy applies only to additional power consumption beyond the previous year’s average.
> **Eligible Activities:**
**Activity 1:**
- Garments, Apparel &amp; Made-ups, Technical Textiles Activity (including Composite Unit)
**Activity 2:**
- Weaving (with or without preparatory), Knitting, Dyeing &amp; Processing, Texturising, Twisting, Embroidery and MMF Spinning to manufacture yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF) (excluding Spinning activity of Cotton and Synthetic Filament Yarn).
&amp;gt; **Labour Intensive Unit:**
Labour Intensive Unit means a new industrial unit that provides minimum employment to 4000 (four thousand) persons duly registered under EPF scheme, out of which minimum female employee should be at least 1000 (one thousand). The existing unit that carrying out expansion/diversification of activities , during the operative period of the scheme and provides totally new employment to minimum 4000 (four thousand) persons duly registered under EPF scheme, out of which minimum female employee should be at least 1000 (one thousand).
Benefits
ActivityPower Tariff SubsidyActivity-1INR 1/unit (kWh) for DISCOM Power or Renewable Power through open-access or drawl of power from group captive renewable energy plant with a cap of INR 15 Cr/Year for period of 5 years from DoCP.Activity-2INR 1/unit (kWh) for DISCOM Power or Renewable Power through open-access or drawl of power from group captive renewable energy plant with a cap of INR 15 Cr/Year for period of 5 years from DoCP.
Required Documents
| # | Document |
|---|---|
| 1 | Document of registration of the industrial undertaking, as applicable under law, and the Industrial Entrepreneur Memorandum, as prescribed by the Government of India. |
| 2 | 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. |
| 3 | Consent to Establish from GPCB, if applicable. |
| 4 | Detailed Project Report containing the following: |
| 5 | Term loan sanction letter from financial institution(s) |
| 6 | Board Resolution / Authority Letter / PoA |
| 7 | PAN Card of Enterprise and Authorized Person |
| 8 | GST Registration with all Annexures |
| 9 | First Sale Bill ( In case of Commercial Production is commenced) |
| 10 | Audit Report (Before initiation of Expansion) |
Frequently Asked Questions
Key dates are summarized in the table on this page, from 1 October 2024 through 1 October 2024, based on values DeshSeva currently stores for this item.