Gujarat Textile Policy: ₹1/Unit Power Tariff Subsidy up to ₹15Cr/Year — Frequently Asked Questions

Eligible units receive ₹1 per unit (kWh) of electricity consumed. The assistance is capped at ₹15 crore per year and is available for a period of 5 years from the Date of Commercial Production.

The scheme is rolling, so there is no single last date to watch. There are, however, timing rules you must respect. The registration application has to be submitted within one year from loan disbursement, production start, or the policy operative date, whichever is later. The application for a Provisional or Final Eligibility Certificate then follows within the timelines tied to the Date of Commercial Production, or to the issuance of the registration certificate or government resolution, depending on your unit category.

Industrial units in Gujarat that the state recognises as Labour Intensive Units, operating in the listed textile activities, can apply. Both new units and existing units going in for expansion, diversification or modernisation are covered. Your electricity bills must be in the unit's own name.

The unit has to provide employment to a minimum of 4,000 persons, duly registered under the EPF scheme, and at least 1,000 of those employees must be female. For existing units expanding, diversifying or modernising, the requirement applies to the new employment created — again a minimum of 4,000 persons including at least 1,000 women.

Garments, Apparel & Made-ups, Technical Textiles, Weaving, Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning are in scope. Cotton spinning and Synthetic Filament Yarn spinning are excluded.

No. This is a subsidy, not an investment. It does not take any equity stake in your unit and the amount does not have to be repaid — the benefit comes through as a reduction in your power cost.

Yes. The benefit applies to electricity availed from DISCOMs, to renewable power sources through open access, and to power drawn from a group captive renewable energy plant. The route of procurement does not disqualify you.

For expansion, diversification or modernisation, the subsidy applies only to the additional power consumption over and above the average consumption of the previous year — that is, the year before the expansion or modernisation. The pre-existing load is not part of the claim.

Start with the registration application, submitted in the prescribed format with the necessary documents to the Industries Commissioner. On scrutiny and verification, a registration certificate is issued by the Industrial Commissioner. After commercial production, you apply for a Provisional or Final Eligibility Certificate — to the General Manager of the District Industries Center if you are an MSME with GFCI up to ₹10 crore, to the MSME Commissioner if you are an MSME with GFCI above ₹10 crore and up to ₹50 crore, or to the Industries Commissioner if you are not an MSME. The policy document is available at https://ic.gujarat.gov.in/documents/pagecontent/Gujarat%20Textile%20Policy_2024.pdf.

The application goes in the prescribed format along with the necessary documents, and the scheme specifically requires electricity bills to be submitted in the unit's own name. Since the Labour Intensive Unit test rests on employees registered under the EPF scheme, you should also be able to evidence that employment, including the count of female employees.

The Gujarat Textile Policy is effective from 1 October 2024 to 29 September 2029. The power tariff subsidy itself is payable for 5 years from the Date of Commercial Production of the unit or the expansion.

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Gujarat Textile Policy: ₹1/Unit Power Tariff Subsidy up to ₹15Cr/Year, though having it can strengthen your application and unlock other benefits.

Gujarat Textile Policy: ₹1/Unit Power Tariff Subsidy up to ₹15Cr/Year is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.