Gujarat Textile Policy: Interest Subsidy

The Industries and Mines Department, Government of Gujarat, administers the Gujarat Textile Policy, an umbrella scheme covering the state's textile sector. It seeks to draw greater investment into the sector and reinforce the textile value chain across every sub-sector. The garments, apparel and technical textiles industries receive particular attention, given their role in the state's economic growth and global competitiveness. The policy runs from 1 October 2024 to 29 September 2029.

Environmental sustainability forms another pillar of the scheme. It stresses lowering the carbon footprint of textile operations and encourages green growth practices. Through this, Gujarat intends its textile sector to be both globally competitive and a frontrunner in sustainable manufacturing.

The Interest Subsidy component delivers credit-linked support on interest payments. Industrial units receive reimbursement of part of the interest paid on term loans, so long as those loans fund eligible Gross Fixed Capital Investment (GFCI). Such assistance supports modernisation, expansion and the uptake of advanced technologies in the textile industry.

- **Registration Application:** An application in the prescribed format is to be filed with the Industries Commissioner. The deadline is one year from whichever of these falls last: the date of loan disbursement, the date commercial production begins, or the date the policy takes effect. Documents generally required for scrutiny and verification include business registration papers, loan sanction letters, project reports and other financial particulars.

- **Issue of Registration Certificate:** Once the application and accompanying documents have been scrutinised and verified satisfactorily, the Industrial Commissioner issues a registration certificate.

- **Application for Provisional/Final Eligibility Certificate:** Industrial units must apply for an Eligibility Certificate after the Date of Commercial Production (DoCP) is obtained. - **MSME units (GFCI up to INR 10 crore):** the application goes to the General Manager, District Industries Center. - **MSME units (GFCI above INR 10 crore and up to INR 50 crore):** the application goes to the MSME Commissioner. - **Units other than MSME:** the application goes to the Industries Commissioner. The Eligibility Certificate application must be submitted within one year of the DoCP, or within one year of the date on which the relevant government resolution or registration certificate is issued, whichever is later. Detailed documentation is required as part of this process, including proof of commercial production, records of loan repayment, and evidence of compliance with policy guidelines.

The Industrial Commissioner, General Manager, District Industries Center, or MSME Commissioner examines the documents submitted with each registration and eligibility certificate application, following the laid-down procedure. Assessment centres on whether the industrial unit satisfies every eligibility condition set out in the policy — the terms attached to its loan, the state of its operations, and its alignment with the policy's aims.