Gandhinagar: The Gujarati government today unveiled its new textile strategy, which includes a 10–35% capital subsidy. The new policy includes provisions for a 5 to 7% interest subsidy, as opposed to the old program’s 5% to 6% subsidy. A power subsidy of Re. 1 per unit has also been implemented.
Gujarat’s Chief Minister Bhupendra Patel unveiled the new policy at the celebration of Udyog Saahasikta Divas, highlighting the state’s dedication to enhancing the textile sector’s competitiveness, sustainability, and ability to create jobs.
The policy focusses on important industries including clothing, technical textiles, knitting, weaving, and MMF manufacture. It places particular emphasis on growing technological textiles, which are vital to areas like infrastructure, healthcare, and the automotive industry.
It provides a number of financial incentives to promote growth and investment in the textile industry. One of these is a capital subsidy that, depending on location, activity, and employment, can range from 10% to 35% of eligible fixed capital investment (eFCI), with a maximum of ₹150 crore. Furthermore, for a maximum of eight years, an interest subsidy of 5% to 7% of eFCI is offered. Payroll help of ₹2,000 to ₹5,000 per month per worker (with extra support for female workers), a Power Tariff Subsidy of ₹1/unit for five years, and special support for Self-Help Groups (SHGs) in the form of payroll and training aid are some additional incentives.
With a focus on creating jobs, the program offers targeted assistance to labour-intensive businesses that employ more than 4,000 people, including at least 1,000 women. These units will get more subsidies.
