Gujarat Chief Minister Bhupendra Patel has unveiled the much-awaited Textile Policy 2024. The new additions of the policy aim to strengthen the textile sector and also outline the financial aid offerings. The Chief Minister shared that the state is expecting to attract an investment of US $ 3.57 billion in the textile sector with the new policy.
Policy details shed light on the monetary incentives related to capital subsidies, interest subsidies, power tariff subsidy, payroll assistance and other supplemental support related to the SHG assistance for job works. It details the eligible candidates from the textile industry who qualify for these benefits. The policy also focuses on identifying quality certifications, savings on energy and water consumption and technology acquisition support.
As per reports, industry leaders have exclaimed the policy to be bold and extensive and the monetary assistance is also expected to attract fresh investments and support MSMEs in expanding their operations.
The two main segments are technical textiles which includes clothing and apparel. The other is for manufacturing process sections of weaving and dyeing.
Power Tariff: The policy also outlined that manufacturing units that avail power from DISCOMS or use renewable power through open access will be provided with tariff of Rs. 1 per unit for a tenure of 5 years from the date of commencement of production (DoCP).
Capital Subsidy: The capital subsidy provides subsidies ranging from 10 per cent to 35 per cent of eligible fixed capital investments (eFCI), based on taluka and activities capped at US $ 11.9 million.
Interest Subsidy: Depending on the taluka, the subsidy on interest rate ranges from 5-7 per cent on eFCI for a tenure of five to eight years with a maximum limit of 2 per cent to 3 per cent of eFCI each year.
Payroll Assistance: The payroll assistance tends to support female working start as it provides Rs. 5000 per female worker and Rs. 4000 per male worker a month for a period of five years in the garment and apparel industry. It also pays Rs. 3000 and Rs. 2000 to female and male workers respectively for a period of five years in the technical textile sector. The payroll assistance aims at lowering the operating cost burdens and also encourage more women up skill themselves.
Assistance to SHG for job work: The policy also mentions that SHG members will be paid Rs. 5000 per month for a period of 3 months if they contribute towards training assistance. In addition to this, the merits given for SHG assistance is intended to up skill a larger group of women
The Gujarat CM also said, “The new textile policy has given women’s self-help groups more weight in order to assist them become more independent and earn more money. The state’s cotton growers, women, and young people will all gain from the new policy in addition to the industry.”
The textile policy intends to strengthen the second-largest industry that is significant for the country’s economic welfare and growth. It also stresses on the contribution of MMEs n the India Textile markets.
“Gujarat, known as the Denim Capital of India and the Textile State of India, has long been a major player in the textile industry. The Gujarat Textile Policy 2024 is a move in the right direction for the industry’s continued empowerment, guaranteeing Gujarat’s position as a worldwide leader while fostering economic opportunities for women and young people. This policy establishes the framework for a competitive and sustainable textile industry,” the Gujarat CM added.
“It’s a good and reasonable policy. Total 25 per cent to 40 per cent of your machine cost will be recovered through this policy. This will benefit both the MSME and large scale industry. The migration of textile industry to other states will reduce,” said Ashish Gujarati, President, Pandesara Weavers Co-op Soc. Ltd. Surat.
