Textile Value Chain Policy 2019

Scheme for Assistance to Strengthen Specific Sector in the Textile Value Chain

“Industries & Mines Department Government of Gujarat”

Operative period of scheme:- From 4th September 2018 to 31 December 2023.
Eligible enterprise:- Companies Act, Partnership Firm, LLP, lndustrial cooperative Society, Proprietary, Above enterprises must be engaged in manufacturing, production, processing or job work of activities covered under this scheme
Benefits available to Only for Textile Unit •New unit •Expansion, including for integration and diverfication

Definitions:-

New Enterprise

New enterprise means an enterprise which has been set up as a new project and commences commercial production of eligible activity as mentioned in this resolution during the operative period of this scheme.

For Expansion

“25% Increase in investment in gross fixed capital / plant & mcahinery & enterprise has reached utilisation of installed capacity extent of at least 75% in any one of the immediately preceding two financial years.”

Gross Fixed Capital

Means and includes Building, Plant & Machinery, Electrifications, Tools & Equipment, Accessories and Utilities ( Excluding Land )

Eligible Activities

ELIGIBLE ACTIVITY	IN-ELIGIBLE ACTIVITY
WEAVING	GINNING
KNITTING	SPINNING
DYEING & PRINTING( PROCESSING)	"GARMENT AND APPAREL (ELIGIBLE UNDER OTHER POLICY)"
MACHINE CARPENTING	ENTERPRISE IN SEZ
"TECHNICAL TEXTILE ( EXCLUDING WOVEN SACKES)"
MADE UPS
"COMPOSITE UNIT ( EXCLUDING GINNING, SPINNING, GARMENT AND APPAREL)"
ALL OTHER OF TEXTILE CHAIN

NO.1: INTEREST SUBSIDY

CATEGORY	NO OF EMPLOYEES	INTEREST SUBSIDY
MSME	NA	6%
"LARGE (NEED DIRECT EMPLOYMENT)"	UPTO 100	4%
	>100 UPTO 200	5%
	>200 UPTO 500	5%
	MORE THAN 500	6%
MAXIMUM CAP	20 crore Per annum
ELIGIBILITY PERIOD	FOR 5 YEARS from the date of commencement of commercial production

NO.2: POWER TARIFF SUBSIDY

Category	FOR WEAVING ACTIVITY	FOR OTHER
	Rs.3 /PER unit Consumed -- FOR LT Connection	2 PER KWH -- FOR LT
	Rs.2 /PER Unit consumed - FOR HT Connection	2 PER KWH -- FOR HT
ELIGIBILITY PERIOD	FOR 5 YEARS from the date of commencement of commercial production

When to apply

“Within one year from the date of first disbursement of term loan OR the date of commencement of commercial production, Whichever is LATER.”

Plant & Machinery

Only new plant & machinery is eligible. Second hand machinery would not be eligible for assistance

Qualified lending institution

“Term loan from commercial/cooperative bank or Financial lnstitution approved by RBl.”

Disbursement date

Term Loan should not be disbursed after one year from Date of Commencement of Commercial Production.

Benefits under other scheme:-

lnterest Subsidy will be in addition to any other incentives available under any other scheme of Govemment of lndia. However, total lnterest Subsidy from State and Centre should not exceed the actual interest paid by the enterprise.

Where subsidy be credited/Kept

Subsidy amount will be directly credited in account of beneficiary.