• Pune, Maharashtra – 410501

State Government Benefits (Subsidy)

Subsidy Scheme for Textile Industry – 2018-23 is governed by Co-operation, Marketing and Textile Department, Government of Maharashtra.

New / Existing (Expansion, Diversification, Modernization) enterprise are eligible in accordance with the guidelines issued by the Government of Maharashtra.

Textile components included in Textile Policy 2018-23 :

(a) Cotton ginning and pressing
(b) Spinning / silk reeling and twisting / integrated silk park / synthetic filament / yarn texturing, crimping and twisting
(c) Weaving and powerloom
(d) Technical textile, non-woven and converters of non-woven
(e) Knitting / hosiery / garment / apparel & made-up
(f) Processing of fiber / yarn / fabric / garments / made-ups
(g) Processing of non-conventional fiber / yarn / fabrics / garments / made-ups (bamboo, banana, ghaypat, maize, coir, hemp, etc)
(h) Expansion of existing textiles units
(i) Textile Parks / processing parks
(j) Energy saving and process control equipment for various textile sectors
(k) Skill development activities
(l) Wool sector (i.e. scouring,combing, spinning (worsted, shoddy and woolen) and weaving and carpet sector.
(m) Standalone spinning
(n) Spinning with matching downstream capacity
(o) Manufacturing viscose filament yarn / viscose staple fiber
(p) Independent weaving preparatory
(q) Embroidery on standalone basis
(r) Composite upgradation (i.e. units going for upgradation in spinning, weaving / knitting and processing)
(s) Multi-activities (units with two or more activities simultaneously except composite upgradation mentioned above)
(t) Composite unit
(u) Other units of textile industry not mentioned herein

Assistance of Subsidy: Capital Subsidy in lieu of Interest Subsidy - The policy of capital subsidy in lieu of Interest subsidy to the new, expansion & diversification / modernization projects undertaken during the Textile Policy 2011-17 will be continued with modifications in the Textile Policy 2018-23. Additional capital subsidy will be granted to processing plants set up in the cotton growing areas of Vidharbha, Marathwada and North Maharashtra. The details of the Capital subsidy rate and the duration for various textiles units are as follows.

Spinning, Ginning, Pressing

Type of Textile

Processing (yarn, fabric, printing), Technical textile Knitting, Hosiery and Garmenting*

Composite Unit **

Conversion of Old Plain powerlooms to Shuttle less Rapier looms or looms based on latest technology (Modernization of powerlooms)

New Powerlooms based on latest technology (Other than plain Powerloom), Weaving, Preparatory, Warping, Sizing, Conning, Twisting, Doubling, TFO and other textile units excluding those mentioned at Col 2 to 5

1

2

3

4

5

6

% of eligible amount

% of eligible amount

% of eligible amount

% of eligible amount

% of eligible amount

Subsidy to units in the General category

25%

25%

Subsidy to units in the SC/ST/Minority category

45%

40%

30%

30%

30%

Additional subsidy for production of Yarn, fabric and other products from non-conventional yarn

10%

10%

10%

-

-

The following additional subsidies will be applicable for textile projects in the Vidarbha, Marathwada and North
Maharashtra regions:

Type of Textile

% of eligible amount

% of eligible amount

% of eligible amount

% of eligible amount

% of eligible amount

Additional Capital subsidy

20%

10%

10%

10%

10%

Additional subsidy for units having Forward/Backward Integration

-

-

5%

Additional subsidy for units set up in a taluka not having any existing Spinning mills

-In order to encourage the dispersal of industries to lesser developed areas of the State, the Government has been giving package of incentives to New Industrial Units / Expansion / Diversification Units set up in the developing regions of the State since 1964 under a Scheme popularly known as the "Package Scheme of Incentives.

The PSI - 2019, as may be amended by the Government from time to time, shall remain in operation from the 1st April 2019 up to 31st March, 2024 or till the new Package Scheme of Incentives comes into force.

Types of Benefits
1. Interest Subsidy
2. Capital Subsidy
3. SGST Refund
4. Electric Duty Exemption
5. Power Tariff Subsidy
6. Wavier of Stamp Duty

-

5%

-

-

5% Additional subsidy for new composite unit set up in a taluka not having any CoOperative or Private spinning mill

-

5%

-

-

-

Disclaimer - We have made all the efforts to avoid errors or omission in the above content. In spite of this there may be chances for its occurrence. So it is suggested that to avoid any doubt reader should cross-check all the facts, law and contents with the Original Government Publications, Guidelines or Notifications issued time to time.

In order to encourage the dispersal of industries to lesser developed areas of the State, the Government has been giving package of incentives to New Industrial Units / Expansion / Diversification Units set up in the developing regions of the State since 1964 under a Scheme popularly known as the "Package Scheme of Incentives.

The PSI - 2019, as may be amended by the Government from time to time, shall remain in operation from the 1st April 2019 up to 31st March, 2024 or till the new Package Scheme of Incentives comes into force.

Types of Benefits
1. Interest Subsidy
2. Capital Subsidy
3. SGST Refund
4. Electric Duty Exemption
5. Power Tariff Subsidy
6. Wavier of Stamp Duty
Disclaimer - We have made all the efforts to avoid errors or omission in the above content. In spite of this there may be chances for its occurrence. So it is suggested that to avoid any doubt reader should cross-check all the facts, law and contents with the Original Government Publications, Guidelines or Notifications issued time to time.