Integrated and Sustainable Textile Policy (ISTP) 2023-28 - Knitting, Hosiery, Garmenting Sector - Capital Subsidy
The Knitting, Hosiery & Garmenting Sector – Capital Subsidy initiative under the Integrated and Sustainable Textile Policy 2023–28 provides direct financial assistance to enterprises investing in new or expanded garmenting, knitting and hosiery units in Maharashtra. The policy encourages modern, labour-intensive manufacturing with a focus on job creation and value addition within the state’s textile ecosystem
Key Features
- Capital Investment Support: Eligible knitting, hosiery and garmenting units receive capital subsidy on fixed capital investment (building, plant & machinery).
- Zonal Differentiation: Subsidy rates are linked to Zone I–IV classification higher benefits for less-developed zones to promote balanced regional growth.
- Inclusive Incentive: Extra 5 % subsidy for enterprises owned by women, SC/ST, minorities and ex-servicemen entrepreneurs.
- Employment Promotion: Sector is labour-intensive and policy prioritises units generating local employment, especially for women workforce.
- Technology Up-gradation: Encourages modern machinery for garment finishing, digital printing, embroidery and automation to enhance productivity.
- Sustainability Add-ons: Units adopting green manufacturing practices (ETP, ZLD, solar energy integration) may claim additional support under linked green initiatives.
Financial Assistance
Note - Subsidy is released in installments post-verification by the Textile Department based on investment and employment fulfilment.
Eligibility Criteria
Who can apply
- New or expansion units in knitting, hosiery, or garment manufacturing registered in Maharashtra.
- Units established in any of the four zones (Zone I to Zone IV) as classified by the State.
- Units with minimum fixed capital investment as prescribed for MSME, Large, Mega or Ultra-Mega category.
- Units using modern energy-efficient machinery and meeting sustainability criteria as per policy guidelines.
Who Cannot Apply
- Units outside Maharashtra.
- Enterprises not falling within the defined knitting, hosiery, or garmenting value chain.
- Units that have already received the same capital subsidy under earlier textile policies for the same investment.
- Units not complying with employment and environmental norms stated in the policy.
Documents Required
- Enterprise registration (Udyam/MSME certificate)
- Detailed Project Report with investment break-up
- Land and building ownership/lease proof
- Machinery invoices and installation certificates
- Employment details and salary register
- Environmental consents (if applicable)
- CA-certified fixed asset statement
- Bank details and PAN/GST certificates
- Self-declaration for women/SC/ST/minority ownership (if claiming extra benefit)
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Apply via Government Portal
- Visit the Department of Textiles portal – mahatextile.maharashtra.gov.in.
- Download and fill the application form for capital subsidy under ISTP 2023-28.
- Attach required documents (DPR, investment proof, employment details etc.).
- Submit to the District Textile Office or upload through the official online portal.
- Post-commissioning, submit claim form for subsidy disbursement within the eligible period.
Option 3: Offline Submission
Application can be submitted manually to the District Textile Officer with hard-copy attachments.
Frequently asked questions
What is the capital subsidy under ISTP 2023–28?
The capital subsidy is financial assistance provided by the Maharashtra government to reduce the cost of machinery investment for knitting, hosiery and garment manufacturing units operating under the state textile policy.
Who can apply for this subsidy?
Eligible applicants include textile entrepreneurs, MSMEs and companies engaged in knitting, hosiery or garment manufacturing activities within Maharashtra.
Is the subsidy available for existing textile units?
Yes, existing units can apply if they undertake expansion, modernization or technology upgradation involving investment in new plant and machinery.
What type of machinery is eligible for subsidy?
Machinery used for textile manufacturing processes such as knitting, stitching, cutting, finishing and related garment production operations is typically eligible.
Is the subsidy limited to MSMEs?
While MSMEs are the primary beneficiaries, other eligible textile manufacturing enterprises may also apply depending on the project size and policy provisions.
Does the scheme support new garment manufacturing units?
Yes, the subsidy supports entrepreneurs establishing new knitting, hosiery or garment manufacturing facilities in Maharashtra.