Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)

Frequently Asked Questions

Who is eligible for this power tariff subsidy?

New or expanding industrial units in Gujarat that are classified as 'Labour Intensive Units' within the textile sector are eligible. This includes activities such as 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 defined as a new industrial unit that provides minimum employment to 4000 persons, with at least 1000 female employees, duly registered under the EPF scheme. For existing units undergoing expansion/diversification, they must provide new employment to a minimum of 4000 persons, including at least 1000 female employees.

What is the benefit amount and duration of the subsidy?

Eligible units receive ₹1 per unit (kWh) on power tariffs, with an annual cap of ₹15 crore. This subsidy is provided for a period of 5 years from the Date of Commercial Production (DoCP) of the unit or expansion.

How do existing units apply for the subsidy for expansion or modernization?

Existing industrial units undergoing expansion, diversification, or modernization are eligible for the subsidy. However, the subsidy will only apply to the additional power consumption beyond the average consumption of the previous year before the expansion/modernization.

What is the application process for this power tariff subsidy?

The application process involves two main stages. First, units must apply for registration to the Industries Commissioner in the prescribed format within one year from their Date of Commercial Production, loan disbursement, or the policy operative date (whichever is later). After obtaining the registration certificate, units must then apply for a Provisional/Final Eligibility Certificate to the relevant authority, such as the General Manager of the District Industries Center, MSME Commissioner, or Industries Commissioner, depending on their unit size.

The Gujarat Textile Policy is an umbrella scheme by the Industries and Mines Department, Gujarat, aimed at boosting investments and strengthening the textile value chain across sub-sectors, including garments, apparel, and technical textiles. Effective from October 1st, 2024, to September 29th, 2029, this initiative promotes green growth and reduces the carbon footprint, enhancing the sector's global competitiveness and environmental sustainability.

The "Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)" component specifically targets reducing electricity costs for eligible industrial units. This subsidy provides crucial financial relief on power tariffs, whether the electricity is sourced from Distribution Companies (DISCOM) or through renewable power sources under open access or from a group captive renewable energy plant. The goal is to support the operational viability of labour-intensive units within the textile sector by mitigating a significant overhead cost.

Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)

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