Subsidy for Textile Units

Subsidy for Textile Units

Subsidy for Textile Units

In India, the textile industry is the second largest industry after agriculture in terms of employment generation and economic contribution. In an attempt to enhance the growth of textile sectors in the State, the Government of Maharashtra has proposed to provide power subsidy for the textiles units of Maharashtra. This article explains the procedure for availing subsidy for textile units in detail.

Objectives

The objectives of providing power subsidy under New Textile Policy are as follows:

  • To generate new employment opportunities in the textile sector.
  • To increase the share of exports in the textile sector and make it more competitive.
  • To build an internationally competitive textile industry in the State of Maharashtra.

Also, read about North East Region Textile Promotion Scheme (NERTPS)

Eligibility Criteria

The following are the eligibility criteria required to obtain subsidy under the scheme: 

  • The units having textile unit registration certificate are eligible to apply for the scheme.
  • The subsidy provided under the scheme applies only to the new enterprise.

Subsidy for Textile Units

  • A subsidy of Rs.3 per unit will be provided to co-operative spinning mills for three years. In these three years, the units are required to set up non- conventional power projects to satisfy their power needs. The restriction of 1MW is removed from the net metering scheme. The subsidy fo Rs.3 per unit will be renewed every year and will be reduced to maintain the overall annual subsidy of state budget within Rs.150 crores.
  • A subsidy amount of Rs.2 per unit will be provided to powerlooms using power above 200 HP. The subsidy is given to powerloom units using less than 27 HP, 27 to 200 HP and more than 200 HP, will also be applicable to garment, knitting and hosiery units.
  • A subsidy amount of Rs.2 per unit will be provided to spinning mills except for processing units, co-operative spinning mills and all other textile units using more than 107 HP power.

Note: It is observed that the electricity rates for units using up to 27 HP are more than the applicable rates for units using 27 to 107 HP. In order to eliminate this disparity, the necessary steps will be taken.

To know the procedure for starting a Garment Business click here.

Power Subsidy Rate for Textiles Units

The State Government will provide the following subsidy to the eligible textile units of the State. The power subsidy will be provided as the rate per loom, which varies for General, SC and ST Category.

S.No. Type of  Modernization (subsidy rate per loom)General Category (35%)Scheduled Caste (SC)
(20%)
Scheduled Tribes (ST)
(8%)
1Type of Modernization (subsidy rate per loom)Rs.10,000Rs.6,800Rs.2,400
2Simple powerlooms to semi-automatic shuttle loomRs.17,500Rs.10,000Rs.4,000
3Semi-automatic shuttle loom to shuttle less rapier loomRs.28,000Rs.16,000Rs.6,400

 Note: This scheme will be implemented as per the terms and conditions of the Central Government scheme. The policy of sanctioning financial credit will be performed after the receipt of beneficiary details from the Central Government is processed. If the scheme is updated by the Central Government, then the State Government will also modify the scheme respectively.

Time Period

The power subsidy for the textiles units will be applicable for five years. The scheme commences from 17/02/2018 and ceases by 31/12/2023.

Documents Required

The enterprise will have to submit the below-listed documents for availing subsidy under the scheme:

  • Copy of Industrial Entrepreneurs Memorandum (IEM)
  • Copy of PAN card of Enterprise
  • Copy Lease Deed/Land Sale Deed/Rent Agreement
  • Copy of Partnership deed/Memorandum and Articles of Association
  • Copy of textile unit registration certificate
  • Proof of Commencement of Commercial Production (Release of Power/First Sale Bill/Sanction etc.)
  • Bank Account Number with IFSC code and Copy of Cancelled Cheque
  • Other documents if required.

Online Application Procedure

All the textile units can apply online for electric subsidy/power subsidy after making online registrations and get approval from the Textiles department. To apply for the subsidy under the new textile policy, follow the procedure mentioned below: 

Visit Official Portal

Step 1: The applicant needs the access the official portal of the textile unit of Maharashtra State.

Registration Form for Textile Unit

Step 2: Click on “Registration form for the textile unit” which is on the home page of the portal.

New User Registration

Step 3: Now, click on the ‘Registration’ button to register under this scheme as the new user registration.

Fill the Details

Step 4: Fill all the necessary details about the owner of the unit and textile units in the State.

Subsidy for Textile Units - New Registration
Subsidy for Textile Units – New Registration

Upload the Documents

Step 5: After filling the details, the above-specified documents have to be uploaded along with the passport size photograph.

Submit 1st Part

Step 6: Finally, click on “Submit 1st part” button to complete the Maharashtra textiles units online registration process by the applicant.

Login for Incomplete Registration Forms

Step 7: In case of an incomplete application, the applicant can click on “Login for Incomplete Registration Forms” option to fill the remaining registration form.

Electric Subsidy Form

Step 8: After completing the registration process, you have to directly go to its official website and click on the link of “Electric Subsidy Form” to register for the subsidy through the common application form.

The specimen copy of the “Electric subsidy Form” is attached below for the reference:

SpecimenCopy-RegistrationofTextileUnit-AndPowerSubsidy

Log in into the Portal

Step 9: Now, all the registered textile units in Maharashtra can log in into the portal with the login credentials such as unique id and password.

Step 10: After successful login, the electric subsidy form will be displayed.

Complete the Details

Step 11: Fill the following information which is compulsorily required for the textile unit.

Save your Form

Step 12: Click on the “Save” button to save the form as a draft so that the user can still edit the form by saving as a draft.

Submit your Form

Step 13: Click on the “Submit” button to submit the form to the regional office of the location that the user has selected while filling the form.

 Note: After verification of the application, the subsidy release status will be updated on the same portal.

 Know your Approvals

 The official directorate of textiles website also contains the list of incomplete registration forms, list of pending forms for department approval and list of approved forms which can be tracked by clicking on “List of approved forms” on the home page of the portal.

Subsidy for Textile Units - Know Your Approvals
Subsidy for Textile Units – Know Your Approvals

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