Gujarat Textile Policy: Payroll Assistance (Fiscal Incentives to Labour Intensive Unit)

The Industries and Mines Department, Gujarat, has introduced the Gujarat Textile Policy as an umbrella scheme. Its objective is to increase investment in the textile sector and reinforce the value chain across all sub-sectors, with particular attention to garments, apparel, and technical textiles. The policy is valid from October 1st, 2024, to September 29th, 2029, and aims to lower the carbon footprint and support green growth, which is intended to enhance the sector's global competitiveness and environmental sustainability.

Under this policy, the component "Payroll Assistance (Fiscal Incentives to Labour Intensive Unit)" offers financial support to industrial units by covering a portion of worker wages. This measure is intended to boost employment and encourage industries in Gujarat, especially in Garments, Apparel, Made-ups, and Technical Textiles, including Composite Units. By easing operational costs, the assistance allows businesses to enlarge their workforce, which contributes to the state's economic progress and reinforces Gujarat's position in sustainable textile manufacturing. The policy's wide-ranging framework ensures that both existing units and new enterprises receive incentives to innovate and expand within the textile ecosystem.

**Application for Registration:** - **Step 1:** An application must be submitted to the Industries Commissioner in the prescribed format, accompanied by the necessary documents, within one year from the later of loan disbursement, production start, or the policy operative date. - **Step 2:** Following receipt and verification, the Industrial Commissioner will issue a registration certificate.

**Application for Provisional/Final Eligibility Certificate:** - **MSME Units with GFCI up to INR 10 Crore:** An application is to be submitted to the General Manager, District Industries Center, subsequent to the Date of Commercial Production (DoCP). - **MSME Units with GFCI above INR 10 Crore and up to 50 Crore:** An application for a Provisional Eligibility Certificate must be submitted to the MSME Commissioner within one year from DoCP or within one year from the date of issuance of this GR, whichever is later. - **Other than MSME Units:** Following DoCP, registered Industrial Units are required to submit an application for a Provisional Eligibility Certificate to the Industries Commissioner within one year from DoCP or within one year from the date of issuance of the registration certificate, whichever is later.

The Industrial Commissioner, or the relevant authority such as the General Manager, District Industries Centre, or MSME Commissioner, examines and verifies the submitted documents. Following this scrutiny, a registration certificate is issued, after which a Provisional or Final Eligibility Certificate is granted. The prescribed procedure details the specific criteria for recognising a unit as "Labour Intensive" and sets out the full verification steps, which are designed to confirm compliance with policy guidelines and eligibility conditions.