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Business & Entrepreneurship

Gujarat Textile Policy: Power Tariff Subsidy

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.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

ActivityPower Tariff SubsidyActivity-1INR 1/unit (kWh) Availing power either from DISCOM or Renewable Power through open-access for period of 5 years from DoCP Activity-2INR 1/unit (kWh) Availing power either from DISCOM or Renewable Power through open-access for period of 5 years from DoCP

Who can apply

Garments, Apparel & Made-ups, Technical Textiles Activity (including Composite Unit); Weaving (with or without preparatory), Knitting, Dyeing & Processing, Texturising, Twisting, Embroidery and MMF Spinning to manufacture yarn from Polyester Staple Fiber (PSF) / Viscose Staple Fiber (VSF) (excluding Spinning activity of Cotton and Synthetic Filament Yarn).

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the "Gujarat Textile Policy"?

The "Gujarat Textile Policy" is a government initiative aimed at strengthening the textile sector by promoting investment, sustainability, employment generation, and value chain integration.

What is the operative period of the "Gujarat Textile Policy"?

The operative period of the Gujarat Textile Policy 2024 is from October 1, 2024, to September 30, 2029, covering a span of five years.

How does the policy contribute to employment generation?

The policy focuses on creating a robust textile ecosystem by attracting investments, encouraging MSMEs, supporting women entrepreneurs, and expanding production capacities, thereby generating employment opportunities.

What incentives are provided under the policy?

The policy offers financial assistance, infrastructure support, and subsidies to strengthen textile manufacturing, encourage investment, and support MSMEs, startups, and large enterprises.

What is the objective of the "Power Tariff Subsidy" component?

The "Power Tariff Subsidy" component provides financial relief on power tariffs for industries availing electricity either from DISCOM (Distribution Companies) or through renewable power sources under open access.

Who can apply for this subsidy?

Eligible new industrial units and those undergoing expansion, diversification, or modernization can apply.

What is the amount of financial assistance provided under this subsidy?

The Power Tariff Subsidy provides financial assistance of INR 1 per unit (kWh) of electricity consumed by eligible industrial units.

For how many years is the subsidy available?

The subsidy is available for a period of five years from the Date of Commencement of Production (DoCP).

Can an industrial unit consuming power from its own captive power plant avail of this subsidy?

No, industrial units consuming power from their own captive power plants, whether thermal or renewable, are not eligible for the subsidy.

Does the subsidy apply to electricity sourced from renewable energy?

Yes, the subsidy applies to electricity sourced from DISCOM or renewable energy under open access, but not from a captive renewable power plant.

How is additional power consumption calculated for units undergoing expansion, diversification, or modernization?

Additional power consumption is calculated based on the difference between the new consumption level and the average consumption of the previous year before expansion, diversification, or modernization.

Can an industrial unit claim a subsidy for electricity bills from a previous financial year?

No, the subsidy is applicable only to electricity consumption from the Date of Commencement of Production (DoCP) onwards.