Government Subsidy For Processing Sector

Subsidy For Textile Processing Sector

The processing of yarn and fabrics at pre-loom as well as post-loom stages is significantly contributing to the essential customization of the product and aesthetic value addition. The processing sector includes dyeing, printing and cloth preparation prior to manufacturing clothing. The state offers textile industry and dyeing units’ requisite incentives for use of modern technology to comply with environmental standards as prescribed by the Pollution Control Board. There are 674 processing units in the State.


The incentives offered to the processing sector will vary as per the Zones. The Zonal classification is given in Annexure B. The incentives offered are as follows1.

Capital and Electricity Subsidy:

Size/ ZoneFinancial Assistance in form of Capital Subsidy-% (on fixed capital investment)Electricity Subsidy
Zone 145%  As per Annexure
Zone 240%
Zone 335%
Zone 430%
Large Enterprises
Zone 140%    As per Annexure
Zone 235%
Zone 330%
Zone 425%
Mega Enterprises
Zone 155% with a maximum up to INR 250 crore, whichever is less          As per Annexure
Zone 250% with a maximum up to INR 225 crore, whichever is less
Zone 345% with a maximum up to INR 200 crore, whichever is less
Zone 440% with a maximum up to INR 175 crore, whichever is less
Ultra Mega Enterprises· High Power Committee (HPC), under Chief Secretary will be constituted to approve the Special Package of Incentives to Ultra Mega projects. · For ultra-mega projects the investment will have to be made within a period of 10 years from the date of issue of Letter of Intent from the DepartmentAs per Annexure

Green Technologies:

The support from the Government on the promotion of green technologies will be as follows2.1

Support for Effluent Treatment Plants (ETP) and Common Effluent Treatment Plant (CETP) –

50% capital subsidy or INR 5 crore whichever is less for establishment of Effluent Treatment Plants (ETPs), will be provided across all Zones in the State. Cost of land is not included in the total cost. This will be extended to new projects. Clusters as approved under Cluster Development Program of Industries department will be eligible for availing incentives for common effluent treatment plant.

 Support for Zero Liquid Discharge (ZLD)-

50% of eligible civil infrastructure/ plant & machinery cost up to a maximum of INR 10 Crore for setting up of ZLD plants. Cost of land will not be included in the total cost of the project.

  Water will be reserved for processing plants since these plants require large quantities of water.

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