Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)
Industries and Mines Department, Government of Gujarat · Central government
Gujarat's Textile Policy power tariff subsidy gives eligible labour-intensive industrial units ₹1/unit, capped at ₹15 crore a year, to cut electricity costs.
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 Industries and Mines Department, Gujarat, runs the Gujarat Textile Policy, an umbrella scheme designed to draw investment and reinforce the textile value chain across sub-sectors such as garments, apparel and technical textiles. It remains in force from 1 October 2024 to 29 September 2029, and its stated aims include promoting green growth, lowering the carbon footprint, and improving both global competitiveness and environmental sustainability in the sector.
Within this policy sits the "Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)" component, which is directed at cutting electricity costs for industrial units that qualify. Relief is given on power tariffs regardless of whether the electricity comes from Distribution Companies (DISCOM), from renewable sources accessed through open access, or from a group captive renewable energy plant.
The purpose of the subsidy is to keep labour-intensive textile units operationally viable by easing a major overhead expense.
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 qualify. - Existing industrial units undertaking expansion, diversification or modernisation qualify. - Electricity bills must be submitted in the name of the industrial unit. - The application must be filed within one year of the Date of Commercial Production (DoCP). - In cases of expansion, diversification or modernisation, the subsidy covers only the power consumption exceeding the previous year's average. - Qualifying activities: Garments, Apparel & Made-ups, Technical Textiles, Weaving, Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning (Cotton and Synthetic Filament Yarn spinning are excluded). - A Labour Intensive Unit employs a minimum of 4000 persons, duly registered under the EPF scheme, of whom at least 1000 are female employees.
How to apply
**Registration Application:**
- **Step 1:** File an application in the prescribed format with the Industries Commissioner, attaching the required documents. The deadline is one year from the date of loan disbursement, commencement of production, or the policy's operative date — whichever falls last. - **Step 2:** Once the documents are received, scrutinised and verified, the Industrial Commissioner will issue a registration certificate.
**Application for Provisional/Final Eligibility Certificate (after DoCP):**
- **MSME units (GFCI up to INR 10 crore):** File the application with the General Manager, District Industries Centre. - **MSME units (GFCI above INR 10 crore and up to INR 50 crore):** File the application for a Provisional Eligibility Certificate with the MSME Commissioner within one year from DoCP, or within one year from the date this GR was issued, whichever falls later. - **Units other than MSMEs:** File the application for a Provisional Eligibility Certificate with the Industries Commissioner within one year from DoCP, or within one year from the date the registration certificate was issued, whichever falls later.
How applications are assessed
The Industries Commissioner, or the relevant District Industries Center, screens every application for registration and eligibility certification. Documents submitted are examined in detail and checked against the prescribed procedure, so that qualifying conditions — including 'Labour Intensive Unit' status and operational particulars — are confirmed before any certificate is granted or subsidy benefit released.
Frequently asked questions
Who is eligible for this power tariff subsidy?
Textile-sector industrial units in Gujarat that are new or expanding and fall under the 'Labour Intensive Units' category can apply; qualifying activities include 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 a minimum of 1,000 are women; an existing unit seeking the same status through expansion or diversification must create fresh employment for at least 4,000 persons, including no fewer than 1,000 women.
What is the benefit amount and duration of the subsidy?
Eligible units get ₹1 per kWh of power tariff, capped at ₹15 crore annually, for 5 years from the unit's or expansion's Date of Commercial Production (DoCP).
How do existing units apply for the subsidy for expansion or modernization?
Yes. Industrial units that are expanding, diversifying or modernising may claim the subsidy, but it is payable only on the power consumed over and above the average consumption recorded in the year preceding the expansion or modernisation.
What is the application process for this power tariff subsidy?
Registration is applied for to the Industries Commissioner in the prescribed format within one year of the later of the Date of Commercial Production, loan disbursement or the policy operative date; once the registration certificate is issued, the unit then applies for a Provisional or Final Eligibility Certificate to the relevant authority — the General Manager of the District Industries Center, the MSME Commissioner or the Industries Commissioner — according to its unit size.
Sectors
- Manufacturing Industrial
- Textile
- Gujarat
- Power Subsidy
- Fiscal Incentive
- Labour Intensive
- Manufacturing
- Green Growth
Details last verified on 16 September 2026. Source: the issuer's published information.