Gujarat Textile Policy: Assistance to SHG for Job Work (Fiscal Incentives to Labour Intensive Unit)

Gujarat Textile Policy: Support for SHGs in Job Work (Fiscal Incentives for Labour-Intensive Units)

The “Gujarat Textile Policy,” established by the Industries and Mines Department, seeks to foster a dynamic textile sector within the state, facilitating job creation and enhancing the overall ecosystem. This policy is particularly aimed at bolstering investments across the textile industry, focusing on the garment, apparel, and technical textiles sectors, while promoting environmentally sustainable practices.

Overview of the Scheme

This comprehensive initiative, which operates from October 1, 2024, to September 29, 2029, is designed to strengthen the textile value chain across various sub-sectors. The policy emphasizes reducing the carbon footprint and promoting green growth, ensuring that Gujarat’s textile sector remains competitive on a global scale. One of the key components of this policy is the “Assistance to SHG for Job Work,” which provides financial backing to Self-Help Groups (SHGs) engaged in job work. This support aims to enhance financial stability and encourage women’s active participation in industrial activities.

Key Benefits of the Scheme

Eligibility Requirements

• The SHG must consist of a minimum of 25 female members.
• Only female workers of the SHG are eligible for assistance.
• The industrial unit is required to pay ₹5,000 per month for each female worker, in addition to the job work charges.
• The SHG should be actively engaged in job work for industrial units.

Exclusions from the Scheme

If the SHG is independently involved in manufacturing and not engaged in job work as defined in the resolution, it will not qualify for the aforementioned incentives.

Application Procedure

Offline Application Process

Registration Application:

1. Submit an application to the Industries Commissioner using the prescribed format along with necessary documents within one year from the loan disbursement, the commencement of production, or the operative date of the policy (whichever is applicable).
2. Upon receiving the application, the Industrial Commissioner will review and verify the documents, after which a registration certificate will be issued.

Application for Provisional/Final Eligibility Certificate:

For Industrial Units:

• For MSME Units with Gross Fixed Capital Investment (GFCI) up to ₹10 Crore: After obtaining the Department of Commerce and Planning (DoCP) approval, the unit must apply to the General Manager of the District Industries Center.
• For MSME Units with GFCI above ₹10 Crore and up to ₹50 Crore: Following DoCP approval, an application must be submitted to the MSME Commissioner for a Provisional Eligibility Certificate within one year from the DoCP or one year from the issuance of the Government Resolution (GR), whichever is later.
• For non-MSME Units: After DoCP approval, registered industrial units should apply for a Provisional Eligibility Certificate to the Industries Commissioner within one year from the DoCP or one year from the registration certificate issuance, whichever is later.

Contact Information

For further inquiries, reach out to:

Industries Commissionerate

District Industries Center

Definitions

• Self-Help Group (SHG): A group of at least 25 women, registered with NRLM/NULM or formed voluntarily, aimed at improving their livelihoods through collective efforts.
• Gross Fixed Capital Investment (GFCI): Refers to investments made in buildings, machinery, electrification, tools, utilities, and other necessary assets for production, excluding land, during the eligible investment period.

Eligible Fixed Capital Investment

Eligible Fixed Capital Investment (eFCI) encompasses the following components made during the designated investment period:

• New Building: Refers to newly constructed or acquired unused buildings, including administrative facilities. Acquisition costs will be determined based on actual expenses or the State Government’s Schedule of Rates (SOR), whichever is less.
• Plant and Machinery: This includes new machinery, utilities, and associated costs, which encompass transportation and installation. Costs for pollution control measures and renewable energy generation facilities are also included.

This policy represents a significant opportunity for women-led SHGs to contribute to Gujarat’s textile sector while enhancing their economic standing through supported job work initiatives.