Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)
Industries and Mines Department, Government of Gujarat · Central government
A Gujarat Textile Policy power tariff subsidy cuts electricity costs for eligible labour-intensive units, offering ₹1/unit up to ₹15 crore/year.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹15,00,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Gujarat Textile Policy is an umbrella scheme administered by the Industries and Mines Department, Gujarat. It seeks to stimulate investment and reinforce the textile value chain across sub-sectors such as garments, apparel, and technical textiles. The policy is in effect from October 1st, 2024, to September 29th, 2029, and incorporates a focus on green growth and lowering the carbon footprint, with the aim of improving the sector's global competitiveness and environmental performance.
Under this framework, the "Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)" component is designed to lower electricity expenses for qualifying industrial units. The subsidy offers financial relief on power tariffs, whether the electricity is obtained from Distribution Companies (DISCOM), through renewable power sources under open access, or from a group captive renewable energy plant. The objective is to sustain the operational viability of labour-intensive textile units by addressing a major overhead cost.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Gujarat
- The industrial unit must be recognised as a Labour Intensive Unit. - New industrial units are eligible. - Existing industrial units undergoing expansion, diversification, or modernisation are eligible. - The industrial unit must submit electricity bills in its name. - The unit must apply within one year from the Date of Commercial Production (DoCP). - For expansion/diversification/modernisation, the subsidy applies only to additional power consumption beyond the previous year’s average. - Eligible activities include Garments, Apparel & Made-ups, Technical Textiles, Weaving, Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning (excluding Cotton and Synthetic Filament Yarn spinning). - A Labour Intensive Unit provides minimum employment to 4000 persons (duly registered under EPF scheme), with at least 1000 female employees.
How to apply
**Application for Registration:** - **Step 1:** The application, in the prescribed format, along with the required documents, must be submitted to the Industries Commissioner. This submission has to be completed within one year from the date of loan disbursement, the commencement of production, or the policy operative date, whichever is later. - **Step 2:** After the documents are received, scrutinised, and verified, the Industrial Commissioner will issue the registration certificate.
**Application for Provisional/Final Eligibility Certificate (after DoCP):** - **MSME Units (GFCI up to INR 10 Crore):** The application is to be submitted to the General Manager, District Industries Center. - **MSME Units (GFCI above INR 10 Crore and up to INR 50 Crore):** The application for a Provisional Eligibility Certificate must be submitted to the MSME Commissioner within one year from the DoCP, or within one year from the date of issuance of this GR, whichever is later. - **Other than MSME Units:** The application for a Provisional Eligibility Certificate must be submitted to the Industries Commissioner within one year from the DoCP, or within one year from the date of issuance of the registration certificate, whichever is later.
How applications are assessed
The Industries Commissioner or the concerned District Industries Centre examines applications for registration and eligibility certificates. Submitted documents are checked against the prescribed procedure to confirm that criteria such as 'Labour Intensive Unit' status and operational details are satisfied.
Only after this verification are the certificates issued and subsidy benefits released.
Frequently asked questions
Who is eligible for this power tariff subsidy?
Industrial units in Gujarat that are new or expanding and fall under the 'Labour Intensive Units' category in the textile sector qualify, covering activities like Garments, Apparel & Made-ups, Technical Textiles, Weaving, Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning.
What defines a 'Labour Intensive Unit' for this scheme?
A Labour Intensive Unit is a new industrial unit registered under the EPF scheme that employs at least 4,000 persons, of whom no fewer than 1,000 are women. For an existing unit expanding or diversifying, it must create new employment for at least 4,000 persons, including a minimum of 1,000 female employees.
What is the benefit amount and duration of the subsidy?
Eligible units get ₹1 per unit (kWh) on power tariffs, capped at ₹15 crore annually, for 5 years from the Date of Commercial Production (DoCP) of the unit or its expansion.
How do existing units apply for the subsidy for expansion or modernization?
Existing industrial units undertaking expansion, diversification, or modernisation can claim the subsidy, but only on the extra power consumed above the average usage recorded in the year prior to the change.
What is the application process for this power tariff subsidy?
To apply, units must first register with the Industries Commissioner in the prescribed format within one year of the later of their Date of Commercial Production, loan disbursement, or the policy operative date. After receiving the registration certificate, they must then apply for a Provisional/Final Eligibility Certificate to the relevant authority—such as the General Manager of the District Industries Centre, MSME Commissioner, or Industries Commissioner—based on unit size.
Sectors
- Manufacturing Industrial
- Textile
- Gujarat
- Power Subsidy
- Fiscal Incentive
- Labour Intensive
- Manufacturing
- Green Growth
Details last verified on 3 August 2026. Source: the issuer's published information.