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

## Gujarat Textile Policy

The Industries and Mines Department, Gujarat, operates the Gujarat Textile Policy, an umbrella scheme intended to draw greater investment into textiles and to reinforce the value chain in every sub-sector. It also targets the garments and apparel segment along with technical textiles. The policy runs from 1 October 2024 to 29 September 2029, and its stated aims include lowering the carbon footprint and encouraging green growth, so that the sector becomes both globally competitive and environmentally sustainable.

One component under the policy — Payroll Assistance (Fiscal Incentives to Labour Intensive Unit) — extends financial support to industrial units by way of monetary assistance towards workers' wages. The scheme is meant to boost employment and to encourage industries in Gujarat, especially Garments, Apparel, Made-ups and Technical Textiles, composite units included.

Such support assists businesses in managing operational costs and in enlarging their workforce, which in turn contributes to the state's economic development and to positioning Gujarat as a leader in sustainable textile manufacturing. Because the policy's scope is broad, both established units and new ventures can access the incentives needed to innovate and grow within the textile ecosystem.

**Application for Registration:**

1. An application must be submitted to the Industries Commissioner in the prescribed format, together with the necessary documents, within one year from the latest of the following: loan disbursement, commencement of production, or the policy's operative date. 2. Once the application is received and verified, 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 must be submitted to the General Manager, District Industries Centre, after the Date of Commercial Production (DoCP). - **MSME units with GFCI above INR 10 crore and up to INR 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 this GR was issued, whichever is later. - **Units other than MSME units:** After DoCP, registered industrial units must submit an application for a Provisional Eligibility Certificate to the Industries Commissioner within one year from DoCP, or within one year from the date the registration certificate was issued, whichever is later.

The Industrial Commissioner, or the relevant authority — General Manager, District Industries Center or MSME Commissioner — examines and verifies the supporting documents before a registration certificate is issued, followed by a Provisional or Final Eligibility Certificate. The prescribed procedure sets out both the detailed verification steps and the specific criteria for recognition as a "Labour Intensive Unit", so that policy guidelines and eligibility requirements are met.