Support to Technical Textiles (para no 6 )

The scheme will be known as Credit linked Interest Subsidy in Technical Textilesg

From 05/09/2012 to Dt. 04/09/2017

Technical Textiles are defined as textile materials and products used primarily for their technical performance and functional properties rather than their aesthetic or decorative characteristics. Depending on the product characteristics, functional requirements and end-use applications, the highly diversified range of technical textiles have been grouped into 13 sectors application-wise.

• Agrotech (Agriculture, Horticulture and Forestry)

• Buildtech (Building and Construction)

• Clothtech (Technical components of shoes and clothing)

• Geotech (Geo-textiles and Civil Engineering)

• Hometech (Components of furniture, household textiles and floor coverings)

• lndutech (Filtration, cleaning and other industrial usage)

• Meditech (Hygiene and Medical)

• Mobiltech (Automobiles, Shipping, Railways and Aerospace)

• Oekotech (Environmental Protection)

• Packtech (Packaging)

• Protech (Personal and Property Protection)

• Sporttech (Sport and Leisure)

• Defebcetech (Textile for defense use)

• Any other products as notified by Ministry of Textiles, Govt. of India Time to time.

The textile manufacturing units of above groups activities are eligible to get benefit under this scheme for following:

• For establishing new enterprise which commence commercial production during operative period of the scheme.

• For carrying out expansion /diversification with investment more than 50% of its existing gross fixed capital investment.

• Exiting enterprises investing more than 25% in cost of its existing plant & machinery for carrying out modernization to upgrade technology.

Maximum interest subsidy at the rate of 6% per annum, for period of 5(five) years or for the period of repayment of loan whichever is earlier, will be available.

• The machinery of Technical/Industrial textile as listed and identified under TUF scheme or compatible with TUF scheme or aor as decided by SLAC will be considered eligible.

• In case of second hand imported machineries eligibility will be determined as per para 6.1.2 Quantum of Assistance & other provisions of GR.

• For the purpose of interest subsidy, the enterprise shall get term loan from Financial Institution/ Bank recognized by Reserve Bank of India.

• The enterprise applying within one year of loan disbursement will be eligible.

• Disbursement of the loan should be within the operative period of the Scheme.

• The enterprise must start commercial operation within the operative period of the scheme.

• This interest subsidy will be in addition to any other incentives available from other schemes of Government of Gujarat.

• The interest subsidy will be available only on interest levied by the Financial Institution.Penal interest or other charges will not be reimbursed.

• The interest subsidy will be for five years OR for the period of repayment of loan whichever is earlier.

• The interest subsidy will be given to the enterprise which pays regular installments and interest to the financial institutions. If the enterprise becomes defaulter, it will not get interest subsidy for the default period and such defaulting period will be deducted from 5 years period.

• The interest subsidy will be considered from the date of payment of first installment of term loan.

• Unit will have to remain in production at least for 10 years from the commencement of commercial production.

• If unit has any pending Government dues, it will not get assistance under this scheme unless it pays all such pending dues.

• All the benefiting enterprises shall file information about annual production, sales, power consumption and such other details as may be asked by DIC on 31st of March annually.

Part-1,   Part-2   as per Annexure – 1

For Sanction of interest subsidy, the unit will have to submit the following self certified documents by the authorized signatory :

For disbursement claim, the unit will have to submit the following self certified documents by the authorized signatory :

• The proposal as per the above checklist should be submitted in duplicate to the respective District Industries Centers (DICs).

• On receipt of application, DIC will scrutinize the application and query letter will be issued within 10 working days to complete the application.

• On receipt of application along with all required documents, DICs will scrutinize and forward the proposal to Industries Commissioner within 10 working days, for further submission before the State Level Committee.

• The State Level Committee will decide the approval of incentives as applicable under the Scheme

• After commencement of commercial production, unit will apply to DIC for claim of interest subsidy.

• On receipt of interest subsidy claim with all documents mentioned incheck list. The physical inspection will be carried out by DIC for the following purpose.
  • Whether unit has started commercial production? and is it in continuous production ?
  • Whether Conditions of Sanction letter / expansion/diversification / modernization are fulfilled?
  • Amount of claim should be calculated as per provision of GR by DIC before asking the grant.

• The above inspection will be completed within 15 working days and report will be submitted to Industries Commissionerate within 10 working days.

• On receipt of above report, grant will be released by Industries Commissionerate, (Time limit : 15 working days)

• DIC on receipt of grant will make the payment of interest subsidy. (Time limit: 7 working days)

Name : Shri S. S. Bhardwaj
Designation:Dy. Commissioner of Industries(Texttile)
Address: Block No. 1, 3rd Floor, Udyog Bhavan, Sector 11, Gandhinagar-382 016.
Phone : + 91 79 79 23252686, 23252684, 23252580, 23252532
E-mail : icsalt@gujarat.gov.in