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

The Industries and Mines Department, Gujarat, has introduced the Gujarat Textile Policy, an umbrella scheme covering the state's textile value chain. It is in effect from October 1st, 2024, to September 29th, 2029, and targets the garments, apparel, and technical textiles sectors. The policy prioritises green growth and carbon footprint reduction to improve global competitiveness and environmental performance.

The Interest Subsidy component provides credit-linked financial assistance for eligible industrial activities. It reimburses a portion of the interest paid on term loans taken for Gross Fixed Capital Investment, easing the financial burden on units and encouraging further investment in labour-intensive textile manufacturing in Gujarat.

**Step 1: Registration Application.** The industrial unit files an application in the prescribed format with the Industries Commissioner. The application, along with supporting documents, must be submitted within one year from the later of: the loan disbursement date, the date of commercial production, or the policy operative date (October 1, 2024). This step formally registers the unit under the policy.

**Step 2: Issuance of Registration Certificate.** The Industries Commissionerate examines and verifies all submitted documents upon receipt. Once the application is found to conform to the prescribed procedures, a registration certificate is issued to the industrial unit.

**Step 3: Application for Provisional/Final Eligibility Certificate.** Following the Date of Commercial Production (DoCP), the unit applies for a Provisional Eligibility Certificate. The receiving authority depends on the unit's Gross Fixed Capital Investment (GFCI): - **MSME Units with GFCI up to INR 10 Crore:** Application is submitted to the General Manager, District Industries Center. - **MSME Units with GFCI above INR 10 Crore and up to 50 Crore:** Application is submitted to the MSME Commissioner within 1 year from DoCP or within 1 year from the date of issuance of this GR, whichever is later. - **Other than MSME Units:** Application is submitted to the Industries Commissioner within 1 year from DoCP or within 1 year from the date of issuance of the registration certificate, whichever is later.

**Required Documents:** The source does not provide a full list. Typical documents would include proof of loan sanction and disbursement, evidence of commercial production date, EPF registration for employee count verification, and other financial and operational documents as specified in the prescribed format.

The Industries Commissionerate or the relevant District Industries Centre examines the application and supporting documents submitted by the industrial unit. Verification covers the unit’s status as a Labour Intensive Unit, the specifics of the sanctioned term loan, the dates of loan disbursement, and submission within the prescribed deadlines. This is an administrative review, not a competitive selection. Once the unit meets the policy criteria, registration and eligibility certificates are issued.