Gujarat Textile Policy: Capital Subsidy

The Industries and Mines Department of Gujarat administers the Capital Subsidy component of the Gujarat Textile Policy. This programme, effective from October 1st, 2024, to September 29th, 2029, aims to increase investment and reinforce the textile value chain within the state. It covers several sub-sectors, with a specific focus on garments, apparel, and technical textiles.

The policy also prioritises environmental objectives, seeking to lower the carbon footprint and support green growth initiatives. These measures are intended to improve the international competitiveness of Gujarat's textile industry while ensuring its long-term sustainability. Eligible industrial units receive financial assistance for capital expenditure, with the subsidy amount determined by the unit's location within Gujarat and the type of activity it performs.

The application process is divided into two stages: registration, followed by the application for an eligibility certificate.

- **Stage 1: Registration Application** - Applicants must submit their application to the Industries Commissioner in the prescribed format. This must be done within one year from the date of loan disbursement, the commencement of commercial production, or the policy operative date (October 1st, 2024), whichever is later. - All required documents must accompany the application. - After the submitted documents are received, scrutinised, and verified according to established procedures, the Industrial Commissioner will issue a registration certificate.

- **Stage 2: Application for Provisional/Final Eligibility Certificate** - **For MSME Units with Gross Fixed Capital Investment (GFCI) up to INR 10 Crore:** Following the Date of Commercial Production (DoCP), units must submit their application to the General Manager, District Industries Center. - **For MSME Units with GFCI above INR 10 Crore and up to 50 Crore:** After DoCP, these units must submit their application to the MSME Commissioner for a Provisional Eligibility Certificate. This application must be made within one year from DoCP or within one year from the date of issuance of this GR (Government Resolution), whichever is later. - **For Other than MSME Units (non-MSMEs):** After DoCP, units that have completed their registration must submit an application for a Provisional Eligibility Certificate to the Industries Commissioner. This application is due within one year from DoCP or within one year from the date of issuance of the registration certificate, whichever is later. - The application process is primarily offline, requiring submission of physical documents to the respective government authorities.

The Capital Subsidy selection process begins with a review of applications and supporting documents by government authorities. Once an industrial unit applies for registration, the Industries Commissioner’s office examines the submission against the policy’s procedural and eligibility requirements. This initial check results in the issuance of a registration certificate.

When units later apply for their Provisional or Final Eligibility Certificate, verification is carried out by the General Manager of the District Industries Center, the MSME Commissioner, or the Industries Commissioner, depending on the unit’s MSME status and Gross Fixed Capital Investment (GFCI). Only units that meet the specified activity, investment, and production milestones receive the subsidy for fixed capital investments, in line with the policy’s objectives of industrial growth and sustainability.