Gujarat Textile Policy Capital Subsidy: Up to ₹150 Cr for Textile Units — Frequently Asked Questions

The subsidy works out to 25% to 35% of your Eligible Fixed Capital Investment, and the total for a single unit is capped at ₹150 crore. The exact percentage is not the same for everyone — it is determined by the category of the taluka where your unit is located and by the specific textile activity you carry out.

A new industrial unit that gives employment to at least 4,000 persons, of whom at least 1,000 are women, all registered under the EPF scheme. An existing unit that goes in for expansion or diversification also qualifies if it adds a minimum of 4,000 new employments meeting the same requirement of at least 1,000 female employees under EPF.

Garments, Apparel and Made-ups, Technical Textiles (including composite units), Weaving with or without preparatory processes, Knitting, Dyeing and Processing, Texturising, Twisting, Embroidery, and MMF Spinning that manufactures yarn from Polyester Staple Fiber (PSF) or Viscose Staple Fiber (VSF). Spinning of cotton and synthetic filament yarn is not covered.

Yes. The unit must have availed a term loan for the project. On top of that, the capital subsidy you receive from the State Government and the Central Government put together cannot be more than the total term loan amount that has been disbursed for the project.

There is no fixed closing date — the scheme runs on a rolling basis for the life of the policy. The timing that matters is relative to your milestones: the registration application must go in within one year from whichever is later among the date of loan disbursement, the date commercial production begins, or the date the policy became operative. If you are an MSME with GFCI up to ₹10 crore, the eligibility certificate application then goes to the General Manager, District Industries Center.

Both can apply. The scheme covers new industrial units that employ at least 4,000 people, and it equally covers existing units that take up expansion or diversification and add at least 4,000 new employees, with at least 1,000 of them being women, all registered under EPF.

It has to be filed after the Date of Commercial Production (DoCP). MSME units with GFCI above ₹10 crore and up to ₹50 crore apply to the MSME Commissioner within 1 year from DoCP or within 1 year from the issue of the relevant Government Resolution, whichever is later. Non-MSME units with GFCI above ₹50 crore apply to the Industries Commissioner within 1 year from DoCP or within 1 year from the issue of the registration certificate, whichever is later.

Neither. This is a capital subsidy, so the amount does not have to be repaid and no equity, shares or ownership stake in the unit is taken by the government in exchange. The only structural conditions are that a term loan must exist for the project and that the combined State and Central subsidy cannot exceed the term loan amount disbursed.

The process runs in stages. First, submit the application for registration to the Industries Commissioner in the prescribed format with all supporting documents, within one year from the last of loan disbursement, commencement of commercial production, or the policy operative date. Second, once scrutiny and verification are done, a registration certificate is issued. Third, after commercial production begins, apply for the Provisional or Final Eligibility Certificate to the authority that matches your unit's size and GFCI. Scheme details are published in the Gujarat Textile Policy 2024 document at https://ic.gujarat.gov.in/documents/pagecontent/Gujarat%20Textile%20Policy_2024.pdf.

The Gujarat Textile Policy operates from 1 October 2024 until 29 September 2029. Because applications are accepted on a rolling basis, there is no single annual window — but the registration, commercial production and eligibility certificate timelines still have to be respected within that period.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Gujarat Textile Policy Capital Subsidy: Up to ₹150 Cr for Textile Units, though having it can strengthen your application and unlock other benefits.

Gujarat Textile Policy Capital Subsidy: Up to ₹150 Cr for Textile Units is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.