Gujarat govt to provide interest and power tariff subsidy to boost textile value chain, 6% subsidy for MSME units
New Delhi, Jan 11 (KNN) To boost the textile value chain in Gujarat, the state government has announced a scheme to provide interest and power tariff subsidy along with other incentives for specific sectors in the textile industry. For Micro, Small and Medium Enterprises (MSME) units, the subsidy would be 6%.
Whereas for large units, it would range from 4 to 6% depending upon the number of people employed.
The scheme provides interest subsidy of up to Rs.20 crore per year for a period of five years.
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 said.
The state government would also provide support for establishing textile parks.
It also provides power tariff subsidy for eligible units.
Eligible units would be provided assistance for energy and water conservation and environment compliances.
The units would also be provided assistance of 50% and up to Rs.25 lakh for technology acquisition and up gradation.
The Government Resolution (GR) said, “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.”
"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 added.
Weaving, knitting, dyeing, printing, machine carpeting, technical textile, made-ups, crimping, twisting, texturizing, 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.
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.