Scheme Overview
Sponsoring Authority : Dept. of Handloom & Textiles
Policy period : 2017 – 2022
Applicable to : New / Existing / Expansion or Diversification / Modernization
Components of Scheme:
- Scheme for Capital Assistance (S-CAP)
- Scheme for Operational Assistance (S-OP)
- Interest Subsidy
- Power Tariff Subsidy
- Stamp Duty Reimbursement
- Concession on VAT/CST/SGST
- Assistance for Energy, Water and Environmental Compliance to existing units
- Assistance for acquisition of new technology
- Transport Subsidy
- Design, Product Development and Diversification Assistance
- Scheme for Infrastructure Support (S-IP)
- Land
- Built-Up Space (Rental subsidy):
- Industrial Water
- Other Infrastructure
- Environmental Infrastructure
- Assistance for Development of worker Housing / Dormitories
- Scheme for Capacity Building & Skill Development (S-CAD)
- Assistance for Development of worker Housing / Dormitories
- Assistance towards Training Infrastructure in Apparel Design & Development
- Fibre to Fabric Incentive
| 1 | Capital Subsidy: | ||
|
A. For New Units |
For Conventional Textiles | For Technical Textiles | |
| Capital Subsidy All (A 1 to A 5) | 25% | 35% | |
| Ceiling | |||
| A1 (Less than 10 Cr & / 50 Persons in employment) | ₹ 1 Cr | ₹ 2 Cr | |
| A2 (10 – 50 Cr & / 200 Persons in employment) | ₹ 3 Cr | ₹ 5 Cr | |
| A3 (50 – 100 Cr &/ 300 Persons in employment) | ₹ 5 Cr | ₹ 10 Cr | |
| A4 (100 – 200 Cr &/ 500 Persons in employment) | ₹ 10 Cr | ₹ 20 Cr | |
| A5 (More than 200 Cr &/ 1000 Persons in employment) | ₹ 20 Cr | ₹ 40 Cr | |
| B. Existing Units | |||
| Capital Subsidy All (A 1 to A 5) | 20% of Cost of P & M | ||
| Ceiling | ₹ 5 Cr per Uni | ||
| 2 | Interest Subsidy (New & Existing Units) | Subsidy | Cap |
| 75% of the interest rate on loans Availed by a unit | 8% p. a | Period | 8 Years (Including 2 Yrs Moratorium) or Period of Repayment of Loan, Whichever is less. |
| 3 | Power Tariff Subsidy (New & Existing Units) | Subsidy | Period |
| For Ginning & Pressing Mills | ₹ 1 per unit | 5 years from the date of commencement of commercial production | |
| For all other Units |
|
||
| Special benefit:Technical Textiles Units (Extra Benefit) | ₹ 0.50 per Unit (all categories) | ||
| 4 | Concession on VAT /CST / SGST | Subsidy | Period |
| 100% of VAT / CST / SGST (OR) Up to realization of 100% Fixed capital investment, whichever is earlier. | 7 years from the date of commencement of commercial production | ||
| 5 | Transport Subsidy | Subsidy | Available on |
| Eligible Category: |
|
Import of raw materials & export of finished products either by rail/road (From Project location to the port) | |
| Export Intensive Textiles / Apparel Units & Deemed Exports | |||
| 6 | Land | Subsidy | Cap |
| New Textile / Apparel Park | 50% of Basic Land Cost | ₹ 20 Lakhs per acre. | |
| Additional Rebate:Technical Textile Units | 25% of Basic Land Cost | ₹ 10 Lakhs per acre | |
| Note:Land should be acqiured from TSIIC | |||
| 7 | Other Infrastructure (IIDF) (For All Category) | Subsidy | Cap |
Conditions:
|
50% of Cost of Infrastructure | ₹ 1 Cr | |
| 8 | Assistance for Development of worker Housing / Dormitories | Subsidy | Cap |
| Textile / Apparel Parks: Who take up construction of housing / Dormitories by themselves for their workers | 60% of Land Cost & Land conversion charges | ₹ 30 Lakhs per acre | |