Textile Subsidy
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Textile Subsidy
Subsidies We Handle:
Maharashtra Integrated and Sustainable Textile Policy 2023-2028
| Point | Details |
|---|---|
|
Eligibility |
All New & Existing Textile Units across the value chain
Wool & Non-Conventional Yarn |
|
Location |
Applicable anywhere in Maharashtra
*Zone 1 receives the highest incentives |
|
Quantum of Incentive |
Depending on Enterprise Size & Zone
|
|
Method of Availing |
Receivable in the form of
Disbursed in 2 installments after Commencement of Production.
40% after 24 months |
Related FAQs:
What is the duration of this policy?
The policy came into effect from the date of issuance of the Government Resolution (2nd June 2023) and remains in force till 31st March 2028. If a new policy isn’t notified by then, it can be extended for a maximum of 1 additional year.
Which textile sub-sectors are covered under this policy?
Ginning & Pressing, Spinning (Cooperative & Private), Powerloom (Cooperative & Private), Handloom, Processing, Knitting/Hosiery/Garmenting, Sericulture, Traditional Textiles, Wool, Non-Conventional & Synthetic Yarn/Fiber, and Technical Textiles.
What are the 4 Zones under this policy, and why do they matter?
Maharashtra is divided into Zone 1 (Vidarbha), Zone 2 (Marathwada incl. Dhule & Jalgaon), Zone 3 (North Maharashtra excl. Dhule & Jalgaon), and Zone 4 (Western Maharashtra & Konkan). Incentive rates are highest in Zone 1 and progressively lower in Zones 2, 3, and 4 — this is meant to encourage balanced regional growth.
What is the maximum capital subsidy a unit can receive?
Capital subsidy ranges from 30% to 55% of Fixed Capital Investment depending on enterprise size and zone, with Mega units capped between ₹175 crore and ₹250 crore depending on zone. However, the total subsidy from all Central and State sources combined cannot exceed 100% of FCI.
Are there additional incentives for women-owned or SC/ST/Minority-owned units?
Yes — an additional 5% capital subsidy each is available for SC/ST/Minority/Ex-servicemen-run units and for units run by women (with the condition that more than 50% of employees are women; a crèche facility becomes mandatory if women employees exceed 50).
How and when is the capital subsidy disbursed?
It is paid in 2 installments after the project starts commercial production: 60% after 12 months, and the remaining 40% after 24 months.
What is the electricity subsidy and for how long is it available?
Existing units get a per-unit electricity subsidy (rates in Annexure A) for 2 years only, capped at ₹40 lakh per unit per month.
What is MAHA-TUFS and who is eligible?
he Maharashtra Technology Upgradation Fund Scheme (MAHA-TUFS) reimburses 25%-40% of the basic cost of new eligible machinery (capped ₹10-25 crore by zone) for units undertaking technology upgradation, provided the unit has completed 15 years on existing machinery, has positive net worth, uses clean energy, and has an approved DPR.
Can old or refurbished machinery be considered for incentives?
No. Only new machinery is eligible for incentives under this policy; old or refurbished machinery is explicitly excluded.
What support is available for green/sustainable initiatives?
- ETP/CETP: 50% capital subsidy or ₹5 crore (whichever is less)
- Zero Liquid Discharge (ZLD): 50% of eligible cost up to ₹10 crore
- Common Steam Generation Plants: 50% subsidy or ₹1 crore
- Textile Recycling Projects (12 nationwide): 50% subsidy or ₹2 crore