Gujarat Textile Policy: Power Tariff Subsidy (Fiscal Incentives to Labour Intensive Unit)
By Industries and Mines Department, Government of Gujarat
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
A power tariff subsidy under the Gujarat Textile Policy to reduce electricity costs for eligible labour-intensive industrial units in Gujarat, offering ₹1/unit with a cap of ₹15 crore/year.
About this subsidy
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.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Industries & Mines Department (IMD) of the Government of Gujarat is the state department that makes industrial and MSME policy. Its executive arm, the Industries Commissionerate, implements those policies, both the state's and the central government's, and runs the Startup…
Learn moreBenefits & Funding
- Amount
- Up to ₹15Cr
What You Get
This subsidy provides ₹1 per unit (kWh) financial relief on power tariffs for eligible industrial units. The benefit applies to electricity availed from DISCOMs, renewable power sources through open access, or power drawn from group captive renewable energy plants. The subsidy is capped at ₹15 crore per year and is available for a period of 5 years from the Date of Commercial Production (DoCP). This aims to significantly reduce operational costs and promote sustainable practices within the textile sector.
- Disbursement
- Reimbursement
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications for registration and eligibility certificates are subject to scrutiny and verification by the Industries Commissioner or the respective District Industries Center. The process involves a thorough review of the submitted documents and adherence to the prescribed procedure to ensure eligibility criteria, such as 'Labour Intensive Unit' status and operational details, are met before the certificates are issued and the subsidy benefits are disbursed.
Application Process
- 1
Apply for Registration
Submit application in prescribed format to Industries Commissioner with required documents within one year of DoCP, loan disbursement, or policy operative date.
You - 2
- 3
- 4
- 5
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
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.
Sources
Data on this page is compiled from official program and provider references.
