Gujarat Textile Policy: Capital Subsidy
Industries and Mines Department, Government of Gujarat · Central government
Gujarat's capital subsidy scheme under the Textile Policy funds capital expenditure for eligible textile industrial units across the state.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹40,00,00,000 – ₹1,00,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Industries and Mines Department of Gujarat operates a Capital Subsidy component under the Gujarat Textile Policy. Its purpose is to draw investment into the state's textile value chain and reinforce that chain at every stage. The programme runs from 1 October 2024 to 29 September 2029 and covers several sub-sectors, with garments, apparel and technical textiles receiving particular attention.
The policy pursues more than economic expansion. It also pushes sustainable practice, seeking lower carbon emissions and green growth. Together these aims are meant to sharpen the global competitiveness of Gujarat's textile industry while securing its environmental sustainability over the long term.
Under the capital subsidy, eligible industrial units get financial support towards capital expenditure. How much a unit receives depends on where it is located in Gujarat and on the type of activity it carries out.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Gujarat
- A Term Loan must have been availed by the industrial unit for the project. - Commercial production must have commenced before the unit applies for disbursement of subsidy. - The application must be submitted within one year of the Date of Commercial Production (DoCP). - Subsidy drawn from all sources (State and Central) must not be more than the term loan amount actually disbursed.
How to apply
Two stages make up the application process: registration first, followed by an application for the Eligibility Certificate.
- **Stage 1: Applying for Registration:** - The application, in the prescribed format, is to be submitted to the Industries Commissioner within one year from whichever of the following falls later: the date of loan disbursement, the commencement of commercial production, or the policy operative date (October 1st, 2024). - All required documents must accompany the application. - Once the submitted documents are received, scrutinised and verified in line with established procedures, the Industrial Commissioner will issue a registration certificate.
- **Stage 2: Applying for the Provisional/Final Eligibility Certificate:** - **MSME units whose Gross Fixed Capital Investment (GFCI) does not exceed INR 10 Crore:** the application must be submitted to the General Manager, District Industries Center, after the Date of Commercial Production (DoCP). - **MSME units whose GFCI exceeds INR 10 Crore but does not exceed 50 Crore:** after DoCP, such units must apply to the MSME Commissioner for a Provisional Eligibility Certificate. The application is due within one year from DoCP, or within one year from the date this GR (Government Resolution) was issued, whichever falls later. - **Units other than MSMEs (non-MSMEs):** after DoCP, units that have completed registration must apply to the Industries Commissioner for a Provisional Eligibility Certificate. The application is due within one year from DoCP, or within one year from the date the registration certificate was issued, whichever falls later. - The process is largely offline, with physical documents to be submitted to the relevant government authorities.
How applications are assessed
Applications for the Capital Subsidy are scrutinised and verified by the relevant 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. A registration certificate is issued following this initial screening.
When units later apply for the Provisional/Final Eligibility Certificate, further verification is carried out by different authorities depending on their MSME status and Gross Fixed Capital Investment (GFCI) — the General Manager, District Industries Center; the MSME Commissioner; or the Industries Commissioner. Only units that are eligible, undertake the specified activities and meet all investment and production milestones receive the capital subsidy on their fixed capital investments.
Frequently asked questions
What is the primary objective of the Gujarat Textile Policy: Capital Subsidy?
The scheme's main aim is to draw more investment into Gujarat's textile sector and reinforce the whole value chain, particularly garments, apparel and technical textiles. It further seeks to lower the carbon footprint and encourage green growth, so that the industry stays globally competitive and environmentally sustainable.
What are the maximum subsidy amounts available under this scheme?
The maximum subsidy is ₹100 crore for Activity 1 in Category 1 and PM MITRA Park and Category 2 locations. For Activity 2, it is ₹50 crore in Category 1 and PM MITRA Park and Category 2 locations, and ₹40 crore in Category 3 locations.
Who is eligible to apply for this capital subsidy?
Units that have taken a Term Loan for their project, begun commercial production and applied within one year of the Date of Commercial Production (DoCP) or other applicable dates qualify, provided the combined State and Central subsidy does not exceed the term loan amount actually disbursed.
Which activities are covered under this scheme?
The scheme splits eligible activities into two groups: Activity 1 covers garments, apparel and made-ups, and technical textiles, while Activity 2 takes in weaving, knitting, dyeing and processing, texturising, twisting, embroidery, and MMF spinning, though cotton and synthetic filament yarn spinning are left out.
Is a term loan mandatory to avail this subsidy?
A Term Loan must have been availed by the industrial unit for the project to qualify for capital subsidy, and the combined capital subsidy under State and Central Government schemes is capped at the total term loan amount disbursed for the project.
Is there an online application portal for this scheme?
Applications must be submitted offline in the prescribed formats to the Industries Commissioner or the District Industries Center, depending on the unit's type and project size. The required forms can be downloaded.
Sectors
- Manufacturing Industrial
- Textile
- Manufacturing
- Capital Expenditure
- Gujarat
- Industrial Policy
Details last verified on 18 September 2026. Source: the issuer's published information.