Eligible Fixed Capital Investment
- New Building
- Plant & Machinery
- Fixed capital Investment at the workplace of SGH
Composite Unit
Composite Unit means that it integrates various stages of textile production process within premises, which includes spinning, weaving, knitting, dyeing, printing, finishing, and packaging of finished textile product i.e., the unit produces finished textile products starting either from raw material stage or intermediate stage, in a more streamlined and coordinated manner.
Micro, Small and Medium Unit (MSME Unit)
A micro, small or medium unit under this policy means a Unit which has fixed capital investment made in Plant and Machinery as per the following:
- Micro: Less than or equal to INR 1 crore
- Small: More than INR 1 crore and less than or equal to INR 10 crore
- Medium: More than INR 10 crore and less than or equal to INR 50 crore
Eligible Activities under the Policy
Activity – 1
Garments, Apparel & Made-ups, Technical Textiles Activity (including Composite Unit)
Activity – 2
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).
Fiscal Incentives:
New Industrial Unit and/or Existing Industrial Unit carrying out expansion/diversification/modernization of existing projects will be eligible for the following incentives.
Capital Subsidy
Financial assistance by way of Capital Subsidy for eligible activities
Quantum of Assistance:
Category of Taluka | Activity – 1 | Activity – 2 |
Category 1 & PM MITRA Park | 35% of eFCI, Maximum INR 100 Crore | 20% of eFCI, Maximum INR 50 Crore |
Category 2 | 30% of eFCI, Maximum INR 100 Crore | 18% of eFCI, Maximum INR 50 Crore |
Category 3 | 20% of eFCI, Maximum INR 50 Crore | 10% of eFCI, Maximum INR 40 Crore |
Power Tariff Subsidy
Financial assistance by way of Power Tariff Subsidy for eligible activities
Quantum of Assistance:
Activity | Power Tariff Subsidy |
Activity – 1 | INR 1/unit (kWh) Availing power either from DISCOM or Renewable Power through open-access for period of 5 years from DoCP |
Activity – 2 | Same as Activity – 1 |
Assistance for Saving in Consumption of Energy and Water (Section 5.7)
- Eligibility: Both existing and new industrial units taking measures to save energy and water qualify for assistance.
- Financial Assistance:
- Audit Cost: 75% reimbursement of energy/water audit cost (max INR 50,000 per audit), provided once during the policy period.
- Equipment Cost: 25% reimbursement of equipment cost recommended by auditors (max INR 20 lakh), provided as a one-time assistance.
- Conditions:
- Equipment cost assistance is subject to a minimum 10% reduction in energy/water consumption compared to the average of the previous 12 months.
- If consumption increases due to production growth despite efficiency measures, the claim will be reviewed separately by a committee.
Fiscal Incentives to Labour Intensive Unit
New Industrial Unit or Existing Industrial Unit which is carrying out expansion/diversification of eligible activities
Capital Subsidy
Financial assistance by way of Capital Subsidy for eligible activities as specified in para 4.
Quantum of Assistance:
Category of Taluka | Activity – 1 | Activity – 2 |
Category 1 & PM MITRA PARK | 35% of eFCI, Maximum INR 150 Crore | 25% of eFCI, Maximum INR 150 Crore |
Category 2 | 30% of eFCI, Maximum INR 150 Crore | 25% of eFCI, Maximum INR 150 Crore |
Category 3 | 25% of eFCI, Maximum INR 150 Crore | 25% of eFCI, Maximum INR 150 Crore |
Interest Subsidy
Financial assistance by way of Credit-Linked Interest Subsidy for eligible activities as specified
Quantum of Assistance:
Category of Taluka | Activity – 1 | Activity – 2 |
Category 1 & PM MITRA PARK | @7% on Term Loan for 8 years; Maximum 3% of eFCI per annum | @7% on Term Loan for 8 years; Maximum 3% of eFCI per annum |
Category 2 | @7% on Term Loan for 8 years; Maximum 3% of eFCI per annum | @7% on Term Loan for 8 years; Maximum 3% of eFCI per annum |
Category 3 | @7% on Term Loan for 8 years; Maximum 3% of eFCI per annum | @7% on Term Loan for 8 years; Maximum 3% of eFCI per annum |
Power Tariff Subsidy
Financial assistance by way of Power Tariff Subsidy for eligible activities as specified
Quantum of Assistance:
Power Tariff Subsidy | |
Activity – 1 | INR 1/unit (kWh) for DISCOM Power or Renewable Power through open-access or drawl of power from group captive renewable energy plant with a cap of INR 15 Cr/Year for a period of 5 years from DoCP |
Activity – 2 | INR 1/unit (kWh) for DISCOM Power or Renewable Power through open-access or drawl of power from group captive renewable energy plant with a cap of INR 15 Cr/Year for a period of 5 years from DoCP |
