Assam Textiles & Apparel Policy 2025

Sector Development, Infrastructure

The State of Assam is well connected by Road, Railways, Water and Air ways 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 and1(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 capita 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 General Provisions

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 at 40% in the first year and at 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 at 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.

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 at 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.

Other Applicable Subsidies (as per prevalent Industrial Policy):

Environmental Compliances Power Subsidy Interest Subsidy on Working Capital State Goods and Service Tax (SGST) Reimbursement Industrial Infrastructure and Land Bank Stamp Duty Reimbursement Technology Transfer and Quality Certification, ZED Certification Subsidy on Generating Set Financial Assistance to MSMEs listed in Stock Exchange

2 APPARELS, GARMENTS AND MADEUPS

Capital Investment Subsidy

Plant & Machinery

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 at 40% in the first year and at 15% for the next 4 years of the total reimbursable amount.

Employment Cost Subsidy

Per Worker / Month

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

Exhibitions & Trade Events

Reimbursement would be provided at 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. For international events outside India – capped at Rs. 10 Lakhs per unit.

3 Benefits/Incentives and Provisions for PM Mega Integrated Textile Region and Apparel Park Scheme (PM MITRA) & SHG Benefits

PM Mega Integrated Textile Region & Apparel Park Scheme (PM MITRA)

Capital Subsidy: For eligible new industrial units, 20% capital investment subsidy on actual investment made in Plant and Machinery (excluding the cost of land and building) up to a maximum of Rs. 50.00 Crores, shall be disbursed in a phased manner over a period of 5 years from the date of commencement of commercial production.
Interest Subsidy: at 7% on Term Loan for 7 years, maximum of 2% of eligible Fixed Capital Investment.

Self Help Groups (SHG)

Training: Rs. 5000.00 per month per member for a period of 3 months.
Employment Cost Subsidy: 25% of annual turnover value, limited to Rs. 5000.00 per month per member. The subsidy will be provided for 5 years for both production and job works.

The following conditions shall apply for incentives or benefits to SHG: SHG having more than 20 women members shall not be eligible for incentives or benefits. Incentives or benefits shall be applicable for female members of the SHG. The SHG unit shall have to pay at the rate of Rs. 5000.00 per month per female members of the SHG in addition to their own charges. The incentives/ benefits are to be credited to the bank account of the female member.

Eligibility

Categories and Sectors

Textile Sector:
Ginning, Spinning, Weaving (with or without preparatory), Texturising, Twisting, MMF spinning to manufacture yarn from polyester staple fiber (PSF) / viscose staple fiber (VSF), Knitting, Dyeing, Printing, Processing, Wearables, Accessories
Technical Textiles, Support Activities and Wearables & Accessories:
Buildtech, Geotech, Indutech, Mobiltech, Protech, Oekotech, Agrotech, Clothtech, Hometech, Meditech, Sportech, Packtech.
Apparels / Made-ups:
Dress material / Garment. Made-up and wearable and non-wearable stitched fabrics. Fabrics in which at least two sides are stitched using sewing machines.
Ancillary / Support Activities:
Ginning, Spinning, Reeling, Weaving, Knitting, Dyeing and Processing of textiles, Wearables including innerwear, Buttons, Cuff links, Wallets, Belts, Footwear, Bags, Sportswear etc.

Eligibility Criteria

a Units that shall commence commercial production/ operations post the date of notification of this policy shall be eligible for availing of incentives under this policy.
b Existing Units shall get benefits only for the expanded units/volumes post the date of notification of this policy.
c Units with the employment of a minimum of 50 workers (Unskilled, Semi- skilled, skilled) shall be eligible to avail the benefits under the policy after the commencement of commercial production/ operation.
d Units employing not less than 90% domicile workers of Assam, shall be eligible to avail the benefit under the policy.