Scheme for Assistance to Strengthen Specific Sectors in the Textile Value Chain
Interest & Power Tariff Subsidy
1. Name of the Scheme
Interest & Power Tariff Subsidy
2. Governed By
Industries & Mines Department, Government of Gujarat
3. Operative Period
From : 04.09.2018
To : 31.12.2023
4. Who will be eligible?
- Units located in Special Economic Zone is not eligible in this scheme.
- Any New or Existing enterprise who is engaged in eligible textile product manufacturing activity as mentioned above and filed a separate Industrial Entrepreneur Memorandum (IEM) or Udyog Aadhar Memorandum (UAM) with the competent authority.
- Enterprise which has obtained first disbursement & started its commercial production during the operative period of the scheme will eligible for the assistance.
- Only three expansion including one Forward / Backward Integration during operative period is eligible to existing unit set up during operative period of the scheme.
- An existing enterprise that sets up a new independent project of eligible activities, with separately identifiable fixed capital investment, will be treated as New Unit under this policy.
5. Assistance Available
| Sr. No. | Category of Enterprise | No. of Employee | Interest Subsidy |
|---|---|---|---|
| 1 | MSME | 6% | |
| 2 | Large | Providing Direct Employment up to 100 persons | 4% |
| Providing Direct Employment to more than 100 and up to 200 persons | 4.50% | ||
| Providing Direct Employment to more than 200 and up to 500 persons | 5% | ||
| Providing Direct Employment to more than 500 persons | 6% |
- Interest Subsidy will be available for the period of 5 years.
- Along with Interest Subsidy unit can also avail Power Tariff Subsidy Benefit @ Rs. 3 per unit or Rs. 2 per Unit for Period of 5 years.
6. Basic Conditions of Scheme
- Term Loan is Compulsory.
- The promoter’s contribution is must be 15% but not more than 50%.
- Unit must have to apply within 6 months from term loan sanction date for avail the subsidy benefits.
- Machine manufacturer must be registered with Ministry of Textiles.
- Make and year of manufacture & MIC Code Number should be clearly indicated on machine.
- Machine Serial Number should be mentioned in Invoice.
- If unit is existing and subsidy taken in past in the said scheme then he will be eligible for balance subsidy amount only as specified limit in above table.
- Term Loan period should not be for less than 3 years including moratorium period for Micro, Small and Medium units and not less than 5 years for other Categories.
- Unit must have to make digital signature for applying in ATUF scheme.