Gujarat Textile Policy: Interest Subsidy (Fiscal Incentives to Labour Intensive Unit)

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 "Interest Subsidy" provides financial assistance in the form of a credit-linked interest subsidy for eligible industrial activities. This subsidy helps reduce the financial burden on industrial units by reimbursing a portion of the interest paid on term loans for Gross Fixed Capital Investment. BENEFITS Financial Assistance: Category of Taluka Activity 1 Activity 2 Category 1 & PM MITRA Park 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum Category 2 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum Category 3 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum 7% on Term Loan for 8 years; Maximum 3% of eFCI per annum ELIGIBILITY The industrial unit must be recognized as a Labour Intensive Unit. Industrial units must have taken a sanctioned term loan for Gross Fixed Capital Investment. The loan disbursement date must be on or after 01/01/2024 for units under implementation as of 01/10/2024. The unit must apply within one year from the Date of Commercial Production (DoCP). The unit must be in regular repayment of installments and interest. The unit must bear at least 2% interest on the term loan.  Eligible Activities: Activity 1: Garments, Apparel & Made-ups, Technical Textiles Activity (including Composite Unit) Activity 2: Weaving (with or without preparatory), Knitting, Dyeing & 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). 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).