New Textile Policy Gujarat: Many big announcements have been made to promote the textile industry of Gujarat, which has a leading share of 25 percent in the textile business of the country. Under the textile policy of the state government, capital subsidy ranging from 10 to 35 per cent, besides power subsidy for benefits including power subsidy for up to 5592 industrial units Rs. A fund of 1107 crores has been allocated.
Changes made under the Textile Policy
Capital Subsidy: Textile industry will get capital subsidy ranging from 10 percent to 35 percent of eFCI. In which a maximum capital subsidy of Rs.100 crore will be available based on the category and performance of the taluka.
Subsidy on interest: Financial assistance provided under credit-linked interest subsidy has been increased from 5 per cent of eFCI (eligible fixed capital investment) to 7 per cent. The term of which will be 5 to 8 percent.
Subsidy on power tariff: Textile units will get power tariff subsidy for approved operations. In which for five years from DoCP through open access discom and under renewable power Rs. 1 per unit (kWh) will be able to receive electricity.
30,000 crores plan to attract investment
The textile policy announced in 2019 expired in 2023. Due to which a new textile policy has been announced. Based on the changes made in the new policy, the state government has allocated Rs. Plans to attract investment of 30000 crores. Earlier under old policy Rs. 35 thousand crores were invested. In a program organized at Gandhinagar, Chief Minister Bhupendra Patel announced the new textile policy along with the e-launch of various development works of GIDC worth 564 crores today. In which 5500 units will cost Rs. Financial assistance of more than 1 thousand crores has been provided.
A significant change in capital subsidy will benefit
A significant change in capital subsidy will benefit textile companies and traders. They will receive direct financial assistance from the state government towards their investment cost. For example, if a textile entrepreneur in business makes Rs. 100 will be invested, he will be given a subsidy of Rs. 40 will be provided, thereby reducing its capital cost.
