Gujarat Textile Policy: Payroll Assistance (Fiscal Incentives to Labour Intensive Unit)

  • Scheme For: Infra
  • Categories: Business & Entrepreneurship
  • Tags: Business, Entrepreneurship, MSMEs, Textile Industry, Labour Intensive Unit

The "Gujarat Textile Policy" introduced by the Industries and Mines Department aims to create a vibrant Textile Sector ecosystem and generate enormous employment opportunities in the State.

Gujarat Textile Policy: Payroll Assistance (Fiscal Incentives to Labour Intensive Unit) - Introduction

The "Gujarat Textile Policy" is an umbrella scheme introduced by the Industries and Mines Department, Gujarat. It aimed at augmenting investments in the textile sector and strengthening the textile value chain across each sub-sector, while also focusing on strengthening the garments and apparel as well as technical textiles industry.

Effective from October 1st, 2024 to September 29th, 2029, this initiative focuses on reducing the carbon footprint and promoting green growth, thereby making the sector globally competitive and environmentally sustainable. The component "Payroll Assistance (Fiscal Incentives to Labour Intensive Unit)" provides financial support to industrial units by offering monetary assistance for the wages of workers.

This scheme aims to promote employment and encourage industries in Gujarat, particularly in sectors like Garments, Apparel, Made-ups, and Technical Textiles, including Composite Units.

Benefits

Payroll Assistance

Garment, Apparel & Made-ups (including Composite Unit): ₹5,000/- per Female Worker & ₹4,000/- per Male Worker per month for a period of 10 years.

Technical Textile (including Composite Unit): ₹3,000/- per Female Worker & ₹2,000 per Male Worker per month for a period of 10 years.

Eligibility

  • The industrial unit must be recognized as a Labour Intensive Unit.
  • The scheme is applicable to industrial units in the Garment, Apparel & Made-ups, and Technical Textile sectors (including Composite Units).
  • The workers must be domiciled in Gujarat and registered under the EPF scheme.
  • The unit must apply within one year from the Date of Commercial Production (DoCP).

Exclusions

Application Process

Application for Registration:

  • Step 1: The application has to be made to the Industries Commissioner in the GTP 2024 Registration Form along with the following documents within one year from loan disbursement, production start, or policy operative date (whichever is later).
  • Step 2: On receipt of the application and after the scrutiny and verification of relevant documents as per the procedure prescribed, registration certificate will be issued by the Industrial Commissioner.

Application for Provisional/Final Eligibility Certificate: Application for Industrial Unit

  • MSME Units having GFCI up to INR 10 Crore: After DoCP, the Industrial Unit shall submit an application to the General Manager, District Industries Center.
  • MSME Units having GFCI above INR 10 Crore and up to 50 Crore: After DoCP, the Industrial Unit shall submit an application to MSME Commissioner for Provisional Eligibility Certificate within 1 year from DoCP or within one year from the date of issuance of this GR, whichever is later.
  • Other than MSME Units: After DoCP, the Industrial Unit, having registration shall submit an application for Provisional Eligibility Certificate to the Industries Commissioner within 1 year from DoCP or within 1 year from the date of issuance of the registration certificate, whichever is later.

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Definitions

Technical Textile means textile materials and products used primarily for their technical performance and functional properties and it includes 12 technical textile segments, namely, Agrotech, Meditech, Buildtech, Mobiltech, Clothtech, Oekotech, Geotech, Packtech, Hometech, Protech, Indutech and Sportech (as identified by Ministry of Textile, Gol time to time).

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