The Gujarat state government has announced a support scheme spanning the entire textile value chain, with incentives like subsidy in interests and power tariff and assistance in technology upgradation, environmental compliance cost and for textile parks. The scheme will be implemented starting September 4 last year and continue till December 31, 2023.
Named ‘Scheme for Assistance to Strengthen Specific Sectors in the Textile Value Chain’, it covers under weaving, knitting, dyeing, printing, machine carpeting, technical textile, made-ups, composite units and other activities like embroidery, winding, sizing twisting and crimping.The Gujarat state government has announced a support scheme spanning the entire textile value chain, with incentives like subsidy in interests and power tariff and assistance in technology upgradation, environmental compliance cost and for textile parks. The scheme will be implemented starting September 4 last year and continue till December 31, 2023.#
It aims at creating local employment and requires at least 85 per cent of the total manpower of an enterprise and at least 60 per cent of supervisory and managerial staff to be domiciled in Gujarat, Indian newspapers reported quoting an official statement.
The scheme offers financial assistance through credit-linked interest subsidy of 6 per cent for MSME and 4-6 per cent for large enterprises with an upper ceiling of ₹20 crore per annum. A separate scheme for subsidy in power tariff allows up to ₹3 per unit for weaving and ₹2 per unit for other eligible segments.
It offers assistance in energy compliance and conservation of water and environment, covering all existing units in operation for more than three years. The scheme provides 20 per cent assistance on the cost of machinery with a ceiling of ₹30 lakh and 50 per cent assistance for audit fees with a limit of ₹1 lakh. The benefits can be availed of once in two years during the scheme period.
The scheme offers a one-time financial assistance of up to 50 per cent of the cost with a limit of ₹25 lakh for technology upgradation and modernisation in textile value chain.
The state has also extended support for setting up textile parks with financial assistance of up to 25 per cent of capital expenditure on common facilities and infrastructure with a limit of ₹15 crore. The park will receive financial assistance for hostel facilities within its premises with minimum 100 workers domiciled in Gujarat.
The developer of the park will get complete reimbursement of stamp duty paid on purchase of land.
The Gujarat Textile Policy 2012 was operational till September 3 last year. (DS)
Fibre2Fashion News Desk – India
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