Assam Textiles & Apparel Policy 2025

Sector Development, Infrastructure

The State of Assam is well connected by Road, Railways, Water and Airways with the rest of the country. It has a total road length of 65,748 km, Railway route length of 2,571.19 km, National Waterways of 891 km and 6 (six) domestic airports at Dibrugarh, Jorhat, Lakhimpur, Tezpur, Silchar and Dhubri and 1(one) International Airport in Guwahati (Lokapriya Gopinath Bordoloi International Airport). This progress has been possible in recent years because of focussed and integrated efforts made by the State Government in fiscal and non-fiscal interventions.

Handloom, Textile (including Technical Textiles) and Apparel sector has been identified by the Assam Govt. as focussed sectors with a view to create an investor-friendly industrial environment with easy access to raw materials and manpower with the long-term goal of boosting employment opportunities and augment per capital income in the State.

Objectives:

Optimum utilization of states resources to develop an ecosystem in Textiles, Technical Textiles and Apparels sector.
Augment and support the growth of Textiles and Apparel sectors in the State and creation of significant direct and indirect employment opportunities in the sector by developing manufacturing and trading of textiles as a major focus sector.
Facilitate expansion of existing units or industries, establishment of new units or industries in Textiles, Technical Textiles, Apparels and processing units in the State.
Strengthen the entire value chain and production of Textiles, Technical Textiles, Apparels and its ancillary units.
Facilitate trade and export of Textiles, Technical Textiles and Apparels.
Promote women empowerment and attract skilled/semi-skilled/unskilled workforce and creation of rural employment.
Leverage of skills in Textiles, Technical Textiles and Apparel sector.
Increase the export share in Textiles, Technical Textiles and Apparel from the State.
Support the industries to build up world-class State -of-the -art technology in conformity with social and ecological standards to compete globally.

Benefits:

1 Incentives and Provisions

The eligible units shall be considered for the incentives and provisions as detailed below:

Capital Investment Subsidy:

For eligible new industrial units, 40% capital investment subsidy on actual investment made in plant and machinery (excluding the cost of land and building) up to a maximum of INR 50 Crores, shall be disbursed in a phased manner over a period of 5 years from the date of commencement of commercial production.
The subsidy shall be disbursed annually in a period of 5 years @40% in the first year and @15% for the next 4 years of the total reimbursable amount.
The date of commencement of commercial production should not be later than 3 years from the date of the first capital investment made by the industrial unit.
The quantum and percentage of incentive proposed may be provided to initial 5 nos. Anchor Units. Thereafter for further units the quantum and percentage of capital subsidy may be relooked as textiles & apparel units are also eligible for incentives under Uttar Poorva transformative industrialization scheme (UNNATI), 2024.

Employment Cost Subsidy:

New industrial unit shall be eligible for receiving an incentive of INR 6000 per female worker per month and INR 5000 per male worker per month on actual employment by the unit.
The subsidy will be provided for a period of five years (60 months) from the date of commencement of commercial production.
The payment by the unit to its worker shall be Aadhaar linked.

Market Development Initiative (MDI):

Reimbursement would be provided @50% of the actual cost incurred for participating in domestic and international exhibitions/trade events.
Companies can avail this benefit 2 times for each category during the policy period.
For domestic level events – capped at Rs. 3 Lakhs per unit.
For international events outside India – capped at Rs. 6 Lakhs per unit.

Assistance for Environmental Compliances

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

Power Subsidy

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

Interest Subsidy on Working Capital

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

State Goods and Service Tax (SGST) Reimbursement

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

Training & Skill Upgradation:

Reimbursement on establishment of New Training Centre/Institution shall provide 50% on capital investment (excluding land and building) subject to a maximum of Rs. 50.00 Lakh.
Reimbursement on total course fees charged by the institution @75% of the total fees with a limit of Rs. 7500 per trainee per month for minimum 1 month period training courses for non-affiliated vocational training and maximum period up to 6 months, and for affiliated courses 1 year to 4 years.
75% of eligible reimbursement shall be paid on successful completion of the course and the remaining 25% shall be paid after employment of the trainees for at least continuous six months.

Industrial Infrastructure and Land Bank

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

Stamp Duty Reimbursement

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

Technology Transfer and Quality Certification, ZED Certification

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

Subsidy on Generating Set

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

Financial Assistance to MSMEs listed in Stock Exchange

The units shall be eligible to claim incentive offered by the the prevalent Industrial Policy of the State without duplication of the benefits.

Land Allotment

Land allotment to be done as per the Assam Industrial Land Management Policy 2021.

2 Apparels, Garments and Madeups

Capital Investment Subsidy

For eligible new industrial units, 40% capital investment subsidy on actual investment made in plant & machinery (excluding the cost of land and building) up to a maximum of INR 5 Crores, shall be disbursed in a phased manner over a period of 5 years from the date of commencement of commercial production.

The subsidy shall be disbursed annually in a period of 5 years @40% in the first year and @15% for the next 4 years of the total reimbursable amount.

The date of commencement of commercial production should not be later than 3 years from the date of the first capital investment made by the industrial unit.

Employment Cost Subsidy

New industrial unit shall be eligible for receiving an incentive of INR 6000 per female worker per month and INR 5000 per male worker per month on actual employment by the unit.

The subsidy will be provided for a period of five years (60 months) from the date of commencement of commercial production.

Such payment by the unit to its worker shall be Aadhaar linked.

Account, Admin and Marketing staff engaged by the units shall not be considered eligible workers.

Market Development Initiative(MDI)

Reimbursement would be provided @40% of the actual cost incurred for participating in domestic and international exhibitions/trade events.

Companies can avail this benefit 2 times for each category during the policy period.

For domestic level events – capped at Rs. 5 Lakhs per unit. per unit.

For international events outside India – capped at Rs. 10 Lakhs per unit.