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Interest, power sops for textile units: Gujarat government

Ahead of VGS, Gujarat government announces scheme to strengthen textile value chain

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In a bid to strengthen the textile value chain, the state government on Thursday announced a scheme to provide interest and power tariff subsidy, and other incentives for specific sectors in the textile industry.

The Scheme for Assistance to Strengthen Specific Sectors in the Textile Value Chain would apply to new as well as the expansion of existing units, a government resolution dated January 10 said. 0Weaving, knitting, dyeing, printing, machine carpeting, technical textile, made-ups, crimping, twisting, texturising, sizing, and winding are among the activities that would be eligible for benefits under the scheme, while ginning, spinning, garment and apparel, and units located in SEZs would be ineligible.

The scheme provides interest subsidy of up to Rs20 crore per year for a period of five years. For MSME units, the subsidy would be 6%, while it would range from 4 to 6% for large units depending on the number of persons employed.

It also provides power tariff subsidy for eligible units. For weaving units, the subsidy would be Rs3 per unit for LT power connection, and Rs2 per unit for HT power connection. For other units, the subsidy would be Rs2 per unit.

Eligible units would be provided assistance for energy and water conservation and environment compliances. The assistance would be 20% of cost of machinery and equipment, and maximum of Rs30 lakh, and 50% of the fee for energy / water audits.

The units would also be provided assistance of 50% and up to Rs25 lakh for technology acquisition and upgradation.

The state government would also provide support for establishing textile parks. The GR said that the assistance would be 25% of the capital expenditure for establishing common facilities and infrastructure. The assistance would be capped at Rs15 crore. Individual units set up in the park would also be eligible for the benefits, it said.

"At least 85% of the total manpower of the unit, and at least 60% of the supervisory and managerial staff shall have to be domiciled in Gujarat," the GR said.

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