§1Who it is for

  • New and existing textile units (incl. SHGs doing job work) — Activity-1: garments, apparel, made-ups, technical textiles (incl. composite); Activity-2: weaving, knitting, dyeing & processing, texturising, twisting, embroidery, MMF spinning from PSF/VSF (excluding cotton and filament yarn spinning)

Useful if

Garment, technical textile, weaving and processing units in Gujarat

Do not spend time on it if

Cotton spinning mills

§2Eligibility

  1. New unit with separate IEM/Udyam and separately identifiable FCI
  2. Expansion/diversification: +25% GFCI in same premises, 60% in P&M (+25% capacity and 75% prior utilisation for expansion)
  3. Modernisation: replace machinery in use at least 20 years; investment at least 25% of GFCI
  4. Capital subsidy only with term loan; not if loan sanctioned more than 1 year after DoCP; no NBFC loans
  5. Imported second-hand machinery allowed if up to 10 years old with 10 years residual life (CE certified); indigenous second-hand not allowed

§3Benefits

  • Capital subsidy (Cat 1 & PM MITRA): Activity-1 35% of eFCI max Rs 100 crore; Activity-2 20% max Rs 50 crore
  • Interest subsidy 7% on term loan (Activity-1 8 years, Activity-2 7 years) in Cat 1/2
  • Power tariff Rs 1 per unit for 5 years
  • Payroll: Rs 5,000 per female / Rs 4,000 per male worker per month for 5 years (garment/apparel); Rs 3,000 / Rs 2,000 (technical textile)
  • SHG job work: training Rs 5,000 per member per month for 3 months; payroll 25% of job-work turnover up to Rs 5,000 per member per month for 5 years

§4Norms — pattern of assistance

  1. Capital subsidy Cat 2: 30% (A-1, Rs 100 crore) / 18% (A-2, Rs 50 crore); Cat 3: 20% (Rs 50 crore) / 10% (Rs 40 crore); paid in 5 equal annual instalments after DoCP
  2. Interest caps: Cat 1 A-1 3% of eFCI p.a.; Cat 2 A-1 2.5%; Activity-2 2%; Cat 3: 5% for 6 years (A-1) / 5 years (A-2), max 2% of eFCI p.a.
  3. Unit bears minimum 2% interest
  4. Non-P&M items limited to 20% of eFCI
  5. Quality certification 50% of fee + testing equipment up to Rs 10 lakh; energy/water audit 75% up to Rs 50,000; equipment 25% up to Rs 20 lakh

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Apply on IFP Gujarat within the timeline in para 8.1 of the GR

§7Pros and cons

Merits

  • Payroll support per worker for 5 years, higher for women (GTP 5.4)
  • Capital subsidy up to Rs 100 crore for garments/technical textiles (GTP 5.1)

Demerits

  • Capital subsidy needs a term loan; self-financed units excluded (GTP 5.1.2)
  • Cotton spinning and filament yarn spinning excluded (GTP 4.2)

→Related schemes

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Sources

  1. Gujarat Textile Policy 2024 — GR No. IMD/WRT/e-file/9/2023/2817/CH dated 15/10/2024
  2. myScheme (Govt of India portal) — Gujarat Textile Policy: Power Tariff Subsidy

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.