Gujarat Textile Policy 2024

The Gujarat government has introduced the Textile Policy 2024 to streamline the sector’s economics down the entire value chain.

It offers fiscal incentives over various areas and has provisions for labour-intensive units.

Through this policy, capital subsidies will be offered ranging from 10% to 35% of the Eligible Fixed Capital Investment (EFCI - investments in fixed assets that qualify for tax benefits under government schemes). Maximum subsidy will be up to ₹100 crore based upon the taluka category and activity.

Credit-linked interest subsidy is also to be offered ranging from 5% to 7% of the EFCI, for a tenure of five to eight years. Here, the maximum subsidy offered will be from 2% to 3% of the EFCI per annum based on the taluka quantifiers.

Payroll assistance ranging from ₹5,000 to ₹3,000 per female worker and ₹3,000 to ₹2,000 per male worker per month is to be provided under this policy.

The policy also offers training assistance of ₹5,000 per month per member for a period of 3 months. Payroll assistance of up to ₹5,000 per month, and up to 25% of job work value turnover is to be offered per member for five years.

Alongside, a power tariff subsidy is to be provided at ₹1/unit (kWh). Units availing power either from Distribution companies (DISCOMs) or renewable power through open access for a period of 5 years from DoCP (Date of Commencement of Production) are to be eligible.

Textile units are also to be offered assistance for quality certification, reducing Energy and Water consumption, and technology acquisition.

The policy also includes corresponding fiscal subsidy provisions for labour-intensive units.

Activities eligible under the policy

Activities focused upon by this policy include garments, apparel, made-ups, and other technical textile activities (including composite units).

Meanwhile, weaving (with or without preparatory), knitting, dyeing & processing, texturizing, twisting, MMF Spinning to manufacture yarn from Polyester Staple Fiber (PSF) or Viscose Staple Fiber (VSF) (excluding spinning activity of cotton and synthetic filament yarn), and embroidery, are included as another activity which is focused upon by this policy.

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