GARMENT INDUSTRY SETUP

AT GUJARAT
A Plant Layout Assignment

BY:
Shreya Anand
Tanya Gupta

OCTOBER 16, 2019

NATIONAL INSTITUTE OF FASHION TECHNOLOGY
Gandhinagar
CONTENTS
1. INTRODUCTION .............................................................................................................................. 2
1.1. GUJARAT ................................................................................................................................. 2
1.2. MAJOR INDUSTRIES IN GUJARAT ........................................................................................... 2
1.3. GUJARAT GARMENT MANUFACTURERS ASSOCIATION (GGMA) ......................................... 3
1.4. INDUSTRIAL POLICIES ............................................................................................................. 3
1.5. INFRASTRUCTURAL FACILITIES............................................................................................... 4
2. LAND ............................................................................................................................................... 4
2.1. ACQUISITION AND DISPOSAL OF LANDS ............................................................................... 4
2.2. LEVY OF DEVELOPMENT CHARGES ........................................................................................ 5
2.3. SUPPLIMENTARY AND MISCELLANEOUS PROVISIONS ......................................................... 5
2.4. FLOOR SPACE INDEX OR FLOOR AREA RATIO........................................................................ 7
2.5. COST OF LAND ........................................................................................................................ 7
3. LABOUR........................................................................................................................................... 8
3.1. LIST OF ACTS IN LABOUR LAWS ............................................................................................. 8
3.2. ACTS IN DETAIL ..................................................................................................................... 10
3.2.1. THE CONTRACT LABOUR ACT, 1970 (REGULATION AND ABOLITION ACT) ................ 10
3.2.2. THE EMPLOYEES’ PROVIDENT FUND ACT AND RULES ................................................ 10
3.2.3. THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986 ............................ 10
3.2.4. INDIAN BOILER REGULATIONS, 1950 ........................................................................... 11
3.2.5. EQUAL REMUNERATION ACT, 1976 ............................................................................. 12
3.3. INCENTIVES TO THE LABOUR ............................................................................................... 12
4. WATER .......................................................................................................................................... 13
5. ELECTRICITY .................................................................................................................................. 13
6. TRANSPORT .................................................................................................................................. 14
6.1. PORTS.................................................................................................................................... 14
6.2. ROAD..................................................................................................................................... 14
6.3. RAILWAYS ............................................................................................................................. 15
6.4. AIRPORTS .............................................................................................................................. 15
7. INDUSTRIAL LAWS ........................................................................................................................ 15
8. CONCLUSION ................................................................................................................................ 18
9. BIBLIOGRAPHY.............................................................................................................................. 19

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 1. INTRODUCTION
1.1. GUJARAT
Gujarat is a state on the western coast of India. It is the fifth largest Indian state by area and
the ninth largest state by population. Its capital city is Gandhinagar, while its largest city is
Ahmedabad.

The economy of Gujarat is the fifth largest state economy in India with ₹13.14 lakh crore in
GDP and a per capita GDP of ₹1,74,000.

Gujarat’s major cities include Ahmedabad, Surat, Vadodara, Rajkot, Jamnagar and Bhavnagar.
In the year 2010, Forbes list of the world’s fastest growing cities include Ahmedabad at
number 3 after Chengdu and Chongqing from China. (Government of Gujarat, n.d.)

1.2. MAJOR INDUSTRIES IN GUJARAT

Gujarat’s Industrial Policy is geared for catalysing Robust, Sustainable and Inclusive growth.
Being the only state to emerge as ‘Investor Friendly’, Gujarat has achieved the distinction of
being the top most industrially developed state in India in respect of investment in Industrial
Sector and second among the states in respect of value of production and value addition in
industrial sector in India. (Government of Gujarat, n.d.)

Growth in the industrial sector of Gujarat is as high as 12.5%. Overall, it contributes to 16% of
the industrial production in the country. Gujarat is a contributing state which accounts only
for 5% of the country’s population and 6% of its geographical area. (Government of Gujarat,
n.d.)

The major industries in Gujarat are agriculture, industry and services. It also includes gems,
jewellery, pharmaceuticals, textile and chemical. The economy of Gujarat is mainly
concentrated in Western India, having agriculture and industrial production within India.
(Admin, 2018)

The state is mainly involved into production of cotton, dates, groundnuts, milk and cane. The
various other industrial products includes cement and petrol. Gujarat is one of the most
industrialised states of India which is the manufacturer of textiles, chemicals, soda ash,
vegetable oils and cement. (Admin, 2018)

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 1.3. GUJARAT GARMENT MANUFACTURERS ASSOCIATION (GGMA)
The Garment Sector, which has witnessed an accelerated growth over last few years, is still
having tremendous potential for growth in today’s era. GGMA has been receiving an able
support from state and central government. (The Gujarat Garments Manufacturer
Association, n.d.)

The Gujarat Garment Manufacturers Association (GGMA) was established in the year 1990
with only 150 members at the initial stage, which has now increased to 1500 members. (The
Gujarat Garments Manufacturer Association, n.d.)

The GGMA is an alliance of Garment Manufacturers who are together working towards
making Gujarat as the most sought after destinations for Ready Made Garment Industries in
India. The efforts of GGMA are directed towards making people aware about the business
possibilities that the Ready Made Garment business in Gujarat can provide them. The GGMA
also creates a platform to avail business for its members and promotes their brand on national
and international platform. One such kind of a platform is a National Garment Fair which
creates huge opportunities for each members. The GGMA have been contributing towards
the garment trade development of the state. (The Gujarat Garments Manufacturer
Association, n.d.)

The GGMA not only comes up with profitable ventures for manufacturers, but even the
buyers and wholesalers from across India and other countries also have now started
considering Gujarat as a prospect for garment trade. (The Gujarat Garments Manufacturer
Association, n.d.)

The GGMA has also responded positively in providing social services in natural calamities like
floods, earthquake and tsunami in the state. (The Gujarat Garments Manufacturer
Association, n.d.)

1.4. INDUSTRIAL POLICIES

Industrial policy is a document that sets the tone in implementing, promoting the regulatory
roles of the government. It is an effort to expand the industrialization and uplift the economy
to its deserved heights. It signifies the involvement of the Indian government in the
development of the industrial sector. (toppr, n.d.)

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The industrial policies of Gujarat have been given in detail further in the document.

1.5. INFRASTRUCTURAL FACILITIES

Infrastructure facilities are considered essential for sustainable industrial development. The
state has therefore given utmost priority for the development of new infrastructure facilities,
upgrade the existing infrastructure to ultimately transform them to world-class standards. For
the purpose, the State Government has taken several initiatives in the recent years with a
view to providing the infrastructure as per the requirements of modern industry. (The
Industries Commissionerate, 2015)

The different types of infrastructural facilities are described in detail. The facilities that are
further described are Land, Labour, Water, Electricity and Transport.

2. LAND
2.1. ACQUISITION AND DISPOSAL OF LANDS
 Whenever any land is required by the corporation for any purpose, but the
Corporation is unable to acquire it by agreement, the State Government may, upon
the an application of the Corporation in that behalf, order proceedings to be taken
under the relevant land acquisition law for acquiring the same on behalf of the
corporation as if lands were needed for a public purpose within the meaning of the
relevant land acquisition law.
o The amount of compensation awarded and all other charges incurred in the
acquisition of any such land shall be forthwith paid by the Corporation and
thereupon the land shall vest in the Corporation.
 In accordance of the objective of the act, the State Government may, upon some
conditions as may be agreed upon between it and the Corporation, place at the
disposal of the Corporation any lands vested in the State Government.
o After any such land has been developed by, or under the control and
supervision of the Corporation, it shall be dealt with by the Corporation in
accordance with the regulations made, and directions given by the State
Government in this behalf.
o If any land placed at the disposal of the Corporation, is required at any time
thereafter by the State Government, the Corporation shall replace it at the

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 disposal of the State Government upon such terms and conditions as the State
Government may after consultation with the Corporation determine. (The
Manager, Government Printing and Stationary , Rajkot, 2011)

2.2. LEVY OF DEVELOPMENT CHARGES

 Where any land is developed or any scheme or work is undertaken by the Corporation
under the provisions of the act and any other land not vesting in or under the control
of the Corporation is benefitted or is likely to be benefitted by such development,
scheme or work, the Corporation may, by resolution, determine the development
charges and levy and collect the development charges from the State Government.
(The Manager, Government Printing and Stationary , Rajkot, 2011)

2.3. SUPPLIMENTARY AND MISCELLANEOUS PROVISIONS

 If the Corporation after holding a local inquiry or upon a report from any of its offices
or other information in its possession, satisfies that the owner of any land in an
industrial area has failed to provide any amenity in relation to the land which in the
opinion of the Corporation ought to be provided or to carry out any development of
the land for which permission has been obtained under this act, after giving the owner
a reasonable opportunity of being heard, serve upon the owner a notice requiring him
to provide the amenity or carry out the development within such time as may be
specified in the notice. (The Manager, Government Printing and Stationary , Rajkot,
2011)
o If any such amenity is not provided or any such development is not carried
within the time specified in the notice, the Corporation may itself provide the
amenity or carry out the development or have it provided or carried out
through an agency.
 Where the erection of any building in industrial area has been commenced, or is being
carried on, or has been completed, or any existing building is altered, in contravention
of the terms on which such building or land on which it stands is held or granted under
this act, any officer of the corporation empowered by it in this behalf may ,in addition
to any prosecution that may be instituted under this Act make an order directing that
such erection may be demolished by the owner thereof within such period not

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 exceeding two months as may be specified in the order, and on the failure of the
owner to comply with the order, the officer may himself cause the erection to be
demolished and the expenses of the demolition shall be recoverable by the
Corporation from the owner. (The Manager, Government Printing and Stationary ,
Rajkot, 2011)
 Any person who whether at his own instance or at the instance of any other person
undertakes or carries out construction of or alterations to any building in an industrial
estate or industrial area contrary to the terms under which he holds such building or
land under this act shall, on conviction, be punished with fine which may extend to
ten thousand rupees, and in the case of continuing contravention, with a further fine
which may extend to five hundred rupees for everyday during which such offence
continues after conviction for the first commission of offence. (The Manager,
Government Printing and Stationary , Rajkot, 2011)
 Any officer of the State Government or any person either generally or specially
authorised by the corporation in this behalf, may enter into or upon any land or
building with or without assistant or workmen for the purpose of:
o Making any inspection, survey, measurement, valuation or enquiry or taking
levels of such land or buildings.
o Examining works under construction and ascertaining the course of sewers and
drains.
o Digging or boring into the sub soil.
o Setting out boundaries and intended lines of works.
o Marking such levels, boundaries and lines by placing marks and cutting
trenches.
o Doing any other thing necessary for the efficient administration of this act.
(The Manager, Government Printing and Stationary , Rajkot, 2011)
 The State Government may, by notification in the Official Gazette, nominate any
officer of the Corporation to be a controller or licensing authority under any law for
the time being in force relating to the procurement or distribution of any commodity
in respect of the industrial undertakings established or to be established in industrial
areas entrusted to or developed by the Corporation and no such nomination shall be

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 called in question merely on the ground that such officer is not an officer of State
Government. (The Manager, Government Printing and Stationary , Rajkot, 2011)
 Notwithstanding anything contained in any other law, or in any license or permit, if
the State Government is satisfied either on a recommendation made in this behalf by
the Corporation or otherwise, that the setting up of an industrial undertaking is
impeded by a local authority’s refusal to grant of any amenity or by such authority’s
insistence on conditions, which the State government considers unreasonable for the
grant of any amenity, the State Government may direct the local authority to grant
the said amenity on such conditions as it considers fit and thereupon the amenity shall
be granted. (The Manager, Government Printing and Stationary , Rajkot, 2011)
 When the State Government is satisfied, that in respect of industrial area, or any part
thereof, the purpose for which the Corporation was established under the act has
been substantially achieved so as to render the continued existence of area.
Thereupon, the State Government may after consulting, pass the orders in respect of
consequential financial arrangements with the corporation, and the transfer or
apportionment of any assets and liabilities of the Corporation as it may deem fit. (The
Manager, Government Printing and Stationary , Rajkot, 2011)

2.4. FLOOR SPACE INDEX OR FLOOR AREA RATIO

Sr. ZONE/AREA F.S.I F.S.I MAXIMUM

No. CHARGEABLE PERMISSIBLE
1 Ahmedabad 1 0.8
2 Rajkot 1.5 1.2
3 Gandhinagar - 2
4 Surat 1.8 1
5 Vadodara - 1
Table 1: FLOOR SPACE INDEX

Source: www.udd.gujarat.gov.in

2.5. COST OF LAND

Sr. DISTRICT NAME ALLOTMENT PRICE (Rs./ sq.

No. metre)
Ahmedabad
1. Apparel Park 5,370
2. Dholka 600

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 3. Mandal 2,900
4. Naroda 6,360
5. Sanand 3,010
6. Viramgam 830
Gandhinagar
1. Bhat 10,600
2. Gandhinagar (SEZ) 3,230
3. Manasa 630
Vadodara
1. Dabhoi 260
2. Pavi Jetpur 100
3. Ranoli 1,960
4. Vaghodia 940
Surat
1. Apparel Park- Sachin (SEZ) 2,420
2. Hajira 3,700
3. Katargam 6,360
4. Sachin 5,100
Rajkot
1. Aji 7,300
2. Bhaktinagar 11,440
3. Morbi 1,700
4. Jetpur 740
Table 2: COST OF LAND

Source: Statement Showing Allotment Price

3. LABOUR
There are some laws followed for the class of labour working in Gujarat that includes both
State and Central Laws. Some are explained briefly and the others are listed further:

3.1. LIST OF ACTS IN LABOUR LAWS

The below given is the list of some acts in Labour Laws:

 The Contract Labour Act, 1970 (Regulation & Abolition) Act, 1970 & The Contract
Labour (P&R) (Gujarat) Rules, 1972
 The Employees’ Provident Fund Act and Rules
 The Employees’ State Insurance Act, 1948
 The Child Labour (Prohibition & Regulation) Act, 1986 & Gujarat Rules 1994
 The Factories Act, 1948 and The Factories Rules, 1963
 The Indian Boilers Act, 1923

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 The Lime Stone and Dolomite Mines Welfare Fund Act
 The Maternity Benefit Act, 1961
 The Motor Transport Workers Act, 1961 & Gujarat Rules, 1965
 The Payment of Bonus Act, 1965 & The Payment of Bonus Rules, 1975
 The Payment of Gratuity Act, 1972 & Gujarat Rules, 1973
 The Payment of Wages Act, 1936
 The Dock Workers (Safety, Health & Welfare) Act, 1986
 The Workmen’s Compensation Act, 1923
 Inter State Migrant Workers Act, 1979 & The Inter State Migrant Workers (Gujarat)
Rules, 1981
 The Bombay Shops & Establishments Act, 1948
 The Gujarat Shops & Establishment (Insurance) Act, 1980
 The Gujarat Smoke Nuisance Act, 1963
 The Bombay Relief Undertakings (Special Provisions) Act, 1958
 The Dangerous Machines Act, 1983
 The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by
certain Establishments) Act, 1987
 The Building and Other Construction Workers Act, 1996
 The Building and Other Construction Cess Act, 1996
 The Industrial Disputes Act, 1947 & Gujarat Rules, 1966
 The Bombay Labour Welfare Fund Act, 1953
 The Minimum Wages Act, 1948
 The Bonded Labour System (Abolition) Act, 1976
 Inter State Migrant Workmen Act, 1979
 C.N.V. Act, 1959
 The Industrial Employment Standing Order Act, 1946 & Gujarat Rules, 1955
 The Sales Promotion Employees (Conditions of Service) Act, 1976
 The Bombay Industrial Relations Act, 1946 & Gujarat Rules, 1961
 The Equal Remuneration Act, 1976 & Gujarat Rules, 1976
 The Trade Unions Act, 1926 & The Gujarat Trade Unions Regulations, 1963

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  The Beedi & Cigar Workers (Conditions of Employment) Act, 1966 & Gujarat Rules,
1968
 The Working Journalists and Other Newspaper Employees’ (Condition of Services) and
Miscellaneous Provisions Act, 1955
 The Working Journalists (Condition of Service) and miscellaneous Provision Rules,
1957
 The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by
Certain Establishments) Act, 1988. (Adukia)

Some of the above listed acts are described briefly.

3.2. ACTS IN DETAIL

The below given are the details of the some of the acts which are followed in Gujarat.

3.2.1. THE CONTRACT LABOUR ACT, 1970 (REGULATION AND ABOLITION

ACT)
An Act to regulate the employment of contract labour in certain establishments and to
provide for its abolition in certain circumstances and for matters connected therewith. (THE
CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970, 1970)

3.2.2. THE EMPLOYEES’ PROVIDENT FUND ACT AND RULES

It covers every establishment in which 20 or more persons are employed and certain
organizations are covered, subject to certain conditions and exemptions even if they employ
less than 20 persons each.

Under EPF scheme, an employee has to pay a certain contribution towards the scheme and
an equal contribution is paid by the employer. The employee gets a lump sum amount
including self and employer’s contribution with interest on both, on retirement. (Dhawan,
2018)

3.2.3. THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986

Employment of children below 14 and 15 years in certain prohibited employments have been
prohibited by various acts but there is no procedure laid down in any law for deciding in which
employments, occupations or processes the employment of children should be banned.

This bill intends to-

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  Ban the employment of children, that is, those who have not completed their
fourteenth year, in specified occupations and processes.
 Lay down a procedure to decide modifications to the Schedule of banned occupations
or processes.
 Regulate the conditions of work of children in employments where they are not
prohibited from working.
 Lay down enhanced penalties for employment of children in violation of the provisions
of the Act, and other acts that forbid the employment of children.
 To obtain uniformity in the definition of ‘Child’ in the related laws. (Government of
India)

3.2.4. INDIAN BOILER REGULATIONS, 1950

IBR is Indian Boiler Regulations, which was created in 15th September 1950 in exercise of the
powers conferred by section 28 & 29 of the Indian Boilers Act. The Indian Boilers Act was
formed in 1923, 23rd February to consolidate and amend the law relating to steam boilers.

The IBR covers the design, fabrication, inspection, testing and certification of:

Boilers or any boiler part including feed piping and fittings or vessels attached thereto Boiler

components, meaning:

 Steam piping

 Feed Piping

 Economizers

 Super heaters

 Valves, including safety valves

 Any mounting or fitting or any external or internal part of a boiler which is subjected

to pressure exceeding one Kg/cm square gauge.

 Steam receivers, separators, steam traps, accumulators and similar vessels

 Heat exchangers, converters, evaporators and similar vessels in which steam is

generated.

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  Materials, e.g. forgings, castings, tubes, pipes, plates, welding consumables.

(Thermodyne Engineering Systems, n.d.)

3.2.5. EQUAL REMUNERATION ACT, 1976

The Equal Remuneration Act, 1976 aims to provide for the payment of equal remuneration to
men and women workers and for the prevention of discrimination, on the ground of sex,
against women in the matter of employment and for matters connected therewith or
incidental thereto. According to the Act, the term 'remuneration' means "the basic wage or
salary and any additional emoluments whatsoever payable, either in cash or in kind, to a
person employed in respect of employment or work done in such employment, if the terms
of the contract of employment, express or implied, were fulfilled". (Government of India,
n.d.)

3.3. INCENTIVES TO THE LABOUR

Below given is the minimum wages in Gujarat for the labour:

Sr. CATEGORY OF ZONE BASIC MONTHLY

No. WORKERS MINIMUM WAGES (in
WAGES (in Rs.)
Rs.)
1. Skilled I 293.00 8655.40
2. Semi-Skilled I 284.00 8421.40
3. Unskilled I 276.00 8213.40
4. Skilled II 284.00 8421.40
5. Semi-Skilled II 276.00 8213.40
6. Unskilled II 268.00 8005.40
Table 3: Minimum Wages

Some details related to the above given table:

 Zone 1: Consists all municipal corporations.

 Zone 2: Consists all major municipalities which have more than 1 lakh population. (Raj
Consultancy)

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 4. WATER
Below given are the rates for water usage in Gujarat. The rates given below are per 1000 litres
of water in the following given years:

 2006-2007: Rs. 8/-

 2007-2008: Rs. 9/-
 2008-2009: Rs. 10/-

The rate of water then increased by 10% per year till present.

5. ELECTRICITY
Although the per capita consumption of electricity is very high in Gujarat as compared to
other regions, the State is self-sufficient in power. While the present generating capacity of
9,827 MW (excluding 4,000 MW of captive generation) is satisfactorily meeting with the
demand of the industries, it will be doubled to 20,725 MW in next five years to make Gujarat
a power surplus state. The state is also planning to set up mini and micro hydel power projects
on the dams and canals in the state, besides harnessing the non-conventional and renewable
energy sources in wind, solar and bio-fuel sectors.

Charges Slab Rate

Energy Charges For Billing Demand <= 50 KW 470 Paisa/unit
For Billing Demand > 50 KW 490 Paisa/unit
Fixed Charges First 50 KW Billing Demand 175 Rs/month/kW
Next 30 KW Billing Demand 230 Rs/month/kW
Rest of Billing Demand 300 Rs/month/kW
Excess Demand (Billing Demand > Contract Demand) 425 Rs/month/kW

Power Factor For each 1% improvement in Power Factor from 90% to 0.15 Paisa/Unit
95%
For each 1% above 95% Power Factor 0.27 Paisa/Unit
For each 1% decrease in Power Factor below 90% 3 Paisa/Unit
Table 4: Details about Electricity

The Billing Demand will be taken as under:

1. The Maximum Demand recorded during the month OR
2. 85% of the Contract Demand OR
3. 6 KW

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Whichever is the highest. (Torrent Power, n.d.)

6. TRANSPORT
6.1. PORTS
The state encompasses 1600 km long coastline, representing one fourth of India’s water front.
Gujarat is strategically positioned to service the vast Northern and Central Indian hinterland.
The state has 40 minor and intermediate ports, geographically dispersed across the state –
South Gujarat (13), Saurashtra (23) and Kutchh (4), besides one major port at Kandla, which
is under Government of India.

During the year 2008-09, the intermediate and minor ports have handled the total cargo of
152.81 lakh tonnes. The main items of imports include: Crude Oil, Naphtha, Coal, Iron Ore,
Rock Phosphate, Fertilizer, Ammonia, machinery, SKO, Ethylene, Paraxylene, Clinker, Cement,
Steel Coils, LPG, Propylene, Waxy residue, LDT etc. The items that were exported include:
HSD, Nephtha, Petrol, Oil Cakes, Bauxite, SKO, Paraxylene, Salt, Soda Ash, Food Grains,
Cement Clinker, Ethylene, IOF, LPG, Pet-cock etc.

Gujarat has formulated a Port Policy and promotes private sector investment in development
of ports and related infrastructure. Gujarat Maritime Board (GMB) has identified 10 green
field sites for development as direct berthing deep-water ports. Of these, Pipavav and Mundra
ports have been operational and two LNG terminals at Dahej and Hazira have become
operational. (The Industries Commissionerate, 2015)

6.2. ROAD
The total length of roads (except municipal roads) in the state is 74,038 km, of which 96.14%
are surfaced roads which include National Highways (NH) – 2,867 km, State Highways (SH) –
18,702 km, Major District Roads (MDR) – 20,707 km and Other District Roads – 10,503 km.
Rest are village roads.

The Government of Gujarat has recognized the need for private participation in the Road
Sector. The Roads and Buildings (R&B) Department has identified several projects to be
offered to private sector. (The Industries Commissionerate, 2015)

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 6.3. RAILWAYS
The total length of railway lines in the state, is 5,188 route km comprising 2,984 km of Broad
Gauge (BG), 1,417 km of Meter Gauge (MG) and 787 km of Narrow Gauge (NG) lines.

Three projects, namely Viramgam- Surendranagar-Pipavav; Gandhidham- Palanpur and

Mundra- Adipur were been taken up under Private Sector Participation (PSP) mode and have
become operational. (The Industries Commissionerate, 2015)

6.4. AIRPORTS
Gujarat has a fairly extensive network of airports and airfields scattered throughout the state.
The airport locations in Gujarat can be classified as tourist centres and industrial centres. The
state has 12 domestic airports and 1 international airport, the highest in any state of India.
Ahmedabad is connected with important national and international cities. (The Industries
Commissionerate, 2015)

7. INDUSTRIAL LAWS
The Gujarat government has announced its new Garment & Apparel Policy 2017. (Wazir
Advisors, n.d.)

The key highlights of the new policy are as under:

Sr. No. TYPE QUANTUM OF ASSISTANCE

1. Interest Subsidy 5% per annum subject to a maximum of Rs. 7.5 crore per year
for 5 years. Eligible investment- Land, Building, Plant &
Machinery.

2. Power Subsidy Subsidy@ Re. 1/unit for 5 years from date of commencement
of commercial production.

In case of expansion, subsidy will be provided only for the

additional facilities.

3. Payroll Assistance For new apparel units having minimum 150 machines and
generating at least 300 domicile jobs, payroll assistance of

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 50% of wages will be provided up to Rs. 4000/- for female
and Rs.3200/- for male worker per month for 5 years.

In case of expansion, above incentives will be available only

for additional workers.

Minimum machineries and job generation remain same (150,

300, respectively).

4. Plug and Play GIDC will develop readymade sheds (along with adequate
Systems support infrastructure) for apparel factories in selected
locations and provide them on long term lease or rental
basis.

GIDC will be provided with 50% assistance of project cost,

which will be passed on to enterprises on pro data basis.

5. Dormitories Assistance through GIDC.

GIDC will develop dormitories in selected locations and

provide them on rent (minimum lock in 10 years) or long
term lease basis.

Dormitories will be operated by leasing entity itself.

State government will provide rent assistance of 50% to

enterprises.

Assistance directly to private developers (individual units or

parks).

50% project cost subject to a maximum of Rs. 5 Crore.

Dormitories to be developed for minimum 250 workers with

a maximum built up area of 50 square feet/ person.

Setting up of training institution.

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 Assistance up to 85% with a ceiling of Rs. 3 crore of the
project.

Eligible investment- Building, equipment and machinery

(including installation), electrification, furniture, etc.
excluding land cost.

6. Skill Development/ Setting up of training centres.

Training
Assistance of 50% subject to a maximum of Rs. 20 lakh per
centre.

Eligible Investment- Equipment & Machinery, electrification

and necessary furniture.

Reimbursement of tuition fee to trainees for apparel

production courses.

50% of total fee charged by institution subject to a limit of up

to Rs. 7500 per trainee (Rs. 10000/- for middle level
management courses).

7. Mega Apparel Park Up to 50% of the total cost of the project with a maximum
limit of Rs. 10 crore.

100% Stamp duty exemption only once, for developer and

first purchaser of individual unit.

Park must accommodate a minimum of 20 apparel units with

150 machines each.

Developer needs to hold at least 20% equity participation in

project.

Table 5: Highlights of New Policy

Source: www.fibre2fashion.com

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 8. CONCLUSION
From the above document, the policies and the support provided by the Gujarat Government
is visible.

The subtopic of Land shows the available FSI and costing would help to get a better idea of
the land that would be best suited for the factory set up. A high difference was observed
between the ranges of price within the city and outskirts of city.

From the points of electricity and water, it was seen that how the rates has been calculated
down so that it would be easier to setup the factory.

The labour laws and wages has helped to get Labour support easily.

The apparel and garment policy 2017, has made it easier to setup factory. This would help the
investors to plant more factories.

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