Rajasthan Textile and Apparel Policy 2025

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📌 1. Policy Overview

• Name: Rajasthan Textile and Apparel Policy 2025
• Effective From: Feb 2025
• Valid Until: March 31, 2029 or until a new policy is notified
• Nodal Department: Industries and Commerce Department, Rajasthan
• Vision: To establish Rajasthan as a global hub for textile and apparel manufacturing by promoting investment, sustainability, innovation, and employment generation.

🎯 2. Goals & Objectives

• Investment Target: ₹10,000 Crores
• Employment Creation: 2 Lakh jobs in 5 years
• Infrastructure: Promote 5 new private textile & apparel parks
• Focus on:
  • Readymade garments (RMG)
  • Technical textiles
  • Natural & Man-Made Fibres
  • Wool & Handloom
  • Leather & Footwear
  • Sustainability & Green Tech

🧵 3. Focus Sub-Sectors (11 Total)

1. Natural Fibre Production
2. Man-Made Fibre (MMF) Production
3. Textile Processing & Manufacturing
4. Technical Textiles
5. Handloom & Textile Handicrafts
6. Wool Processing
7. Apparel Production (Garments, Made-ups, Wearables)
8. Leather & Leatherette Processing
9. Leather & Leatherette Product Manufacturing
10. Accessories for Textile, Apparel, Leather
11. Footwear Manufacturing (Rubber, Plastic, Textile etc.)

📍 4. Advantages of Rajasthan

• Connectivity:

  • 3rd largest national highway network
  • 2nd largest railway network
  • Access to major ports: Mundra, JNPT
  • 7 Airports, 9 ICDs

• Manpower:

  • IIT Jodhpur, IIM Udaipur, NIFT Jodhpur, IIHT Jodhpur
  • 52 private & 31 state universities

• Raw Material:

  • 4th in cotton production (~27.12 lakh bales, FY23)
  • 1st in wool production (46% of India’s total)
  • Major producer of synthetic suiting & yarn

🧱 5. Infrastructure Support

• Existing SITP Parks:

  1. Next Gen Textile Park – Pali
  2. Kishangarh Hi-Tech Park – Ajmer
  3. Jaipur Integrated Texcraft Park – Jaipur

• Upcoming Zones: Bhilwara and Jodhpur (New Textile Zones)

💰 6. Incentives & Financial Benefits

6.1 Asset Creation Incentives (Choose One Only):

• Turnover-Linked Incentives (1.2%–2% of Net Sales Turnover)
• Capital Subsidy Ceiling: ₹50 Cr (Y1–3), ₹65 Cr (Y4–7), ₹80 Cr (Y8–10)

6.2 Asset Creation Incentive Boosters

• Employment Booster: Up to 15% extra based on employment multiples
• Thrust Booster: +10% for key focus sectors
• Regional Anchor Booster: +20% for first 3 mega/ultra projects in backward areas
• Interest Subvention: 5% for 5 years on plant & machinery loans (max 2.5% of EFCI/year)

6.3 Other Major Benefits

• Stamp Duty: 75% exemption + 25% reimbursement
• Conversion Charges: 75% exemption + 25% reimbursement
• Electricity Duty: 100% exemption for 7 years
• Freight Subsidy: 25% on export freight (₹25 lakhs/year cap)
• Skill Development:
  • ₹4000/worker/month (up to 6 months)
  • ₹1 lakh/employee/year for 20 employees
• IPR Incentive: 50% of patent/registration cost (max ₹1 Cr)

6.4 Special Provisions

• Flexible RIICO Land Payment: 25% upfront, 75% in 10 annual instalments @ 8% interest
• Green Solutions Incentive: 50% cost reimbursement (up to ₹12.5 Cr/project)
• Group Captive RE Power Investment:
  • 51% of RE project cost counted as EFCI
  • 100% if 12+ year agreements
• Mother–Ancillary Ecosystem: For units with ₹500 Cr+ combined investment

🛠 7. Implementation Framework

• Project Management Unit (PMU):

  • Investor promotion
  • Coordination
  • DPR evaluation
  • Monitoring project implementation

• Committees:

  • PEC: Evaluates proposals (8-member)
  • PAC: Approves/rejects proposals (6-member)

• Application via: RajNivesh Portal

📊 8. Classification of Units (Based on EFCI)

🌱 9. Focus on Green, Circular, and Smart Industry

• Eligible Green Projects:
  • ETP, CETP, ZLD
  • Reuse/recycling
  • Green Buildings (IGBC/LEED)
  • Smart water systems, air quality tech, IoT for monitoring

📅 10. Timelines & Conditions

• Phased Investments: Allowed in 3 phases (min ₹50 Cr/phase)
• Extension: 2-year post-policy extension if 50% of investment is completed during operative period
• Transition Clause: Units under RIPS 2022 can opt into 2025 policy (not retroactively)
• Disbursement: Incentives based on DPR timelines

❗ 11. Terms & Compliance

• Subsidy ceiling: 125% of EFCI
• Incentives are exclusive (cannot be availed under multiple state schemes)
• Non-compliance or fraud: 18% interest recovery
• Enterprises must adhere to pollution board norms and maintain digital records