Gujarat Textile Policy: Interest Subsidy

The Industries and Mines Department, Government of Gujarat, has introduced the Gujarat Textile Policy as an umbrella scheme to increase investment in the state's textile sector and reinforce the entire value chain across its sub-sectors. Particular attention is given to the garments, apparel, and technical textiles segments. The policy is in effect from October 1st, 2024, to September 29th, 2029.

Environmental sustainability is a central element of the policy, with an emphasis on lowering the carbon footprint of textile operations and encouraging green growth. The aim is to make Gujarat's textile industry globally competitive while establishing it as a leader in sustainable manufacturing.

The Interest Subsidy component provides credit-linked financial assistance on interest payments. Industrial units can receive reimbursement for a portion of the interest paid on term loans, provided the loans are used for eligible Gross Fixed Capital Investment (GFCI). This support is intended to ease the financial load on units and promote modernisation, expansion, and the uptake of advanced technologies.

- **Registration Application:** File an application with the Industries Commissioner using the prescribed format. This filing must occur within one year from the loan disbursement date, the start of commercial production, or the policy operative date, whichever falls later. Typical documents required for scrutiny include business registration proof, loan sanction letters, project reports, and other financial records. - **Issuance of Registration Certificate:** After the submitted application and documents pass scrutiny and verification, the Industrial Commissioner will grant a registration certificate. - **Application for Provisional/Final Eligibility Certificate:** Once the Date of Commercial Production (DoCP) is obtained, industrial units must apply for an Eligibility Certificate. - **MSME Units (GFCI up to INR 10 Crore):** Submit the application to the General Manager, District Industries Center. - **MSME Units (GFCI above INR 10 Crore and up to INR 50 Crore):** Submit the application to the MSME Commissioner. - **Other than MSME Units:** Submit the application to the Industries Commissioner. The Eligibility Certificate application must be submitted within 1 year from the DoCP or within 1 year from the date of issuance of the relevant government resolution or registration certificate, whichever is later. The process entails furnishing comprehensive documentation, such as evidence of commercial production, loan repayment records, and adherence to policy guidelines.

Applications for registration and eligibility certificates are reviewed by the relevant authorities—the Industrial Commissioner, General Manager, District Industries Centre, or MSME Commissioner—who verify the submitted documents in line with the prescribed procedures. The assessment checks that the industrial unit satisfies all stated eligibility requirements, covering loan terms, operational status, and adherence to the policy's aims.