Maharashtra's Integrated & Sustainable
Textile Policy 2023–28
Notified by the Government of Maharashtra vide GR No. Policy-2023/CR-81/Tex-5 dated 02 June 2023. Aims to build an integrated, sustainable and value-added textile value chain based on the 5F vision (Farm → Fibre → Factory → Fashion → Foreign) and the 3R model (Reduce, Reuse, Recycle) — with a special focus on employment generation (especially women), exports and technical textiles.
Investment Target₹25,000 Crore over 5 years
Job CreationUp to 5 Lakh new jobs
Cotton ProcessingIncrease in-state from 30% → 80% in 5 years
Policy ValidityUp to 31 March 2028 (auto-extends 1 year)
Zone-Wise Incentives4 Zones across Maharashtra
Max Capital SubsidyUp to 55% on eligible FCI
₹25,000 Cr
Investment Target
5-year goal
5 Lakh
New Jobs
Direct & indirect
30% → 80%
Cotton Processing
In-state capacity
Up to 55%
Capital Subsidy
On eligible FCI
Project Category Definitions (per GR):
- MSME: Total plant & machinery investment up to ₹50 crore (as per MSMED Act 2006, as amended).
- Large Industry: FCI up to ₹100 crore OR at least 500 persons employed.
- Mega (Vishal) Project: FCI above ₹100 crore OR at least 1,000 persons employed.
- Ultra Mega (Ati-Vishal) Project: FCI above ₹1,000 crore OR at least 2,000 persons employed.
Policy Framework
Objectives & Eligible Beneficiaries
Who the policy serves and what it sets out to achieve.
Objectives
10 core goals of ISTP 2023–28
- Develop an integrated textile value chain (Ginning → Spinning → Weaving → Processing → Garmenting)
- Promote technical textiles & sustainable manufacturing
- Increase in-state cotton processing from 30% to 80% in 5 years
- Attract ₹25,000 crore investment and create 5 lakh jobs
- Boost investment in textile parks & clusters
- Promote women's entrepreneurship and empowerment
- Focus on research, skill development and R&D
- Develop 6 Technical Textile Parks across the 4 zones
- Establish Maharashtra State Textile Development Corporation (MSTDC)
- Promote exports and brand Maharashtra as a textile hub
Eligible Beneficiaries
Entities that can apply under the scheme
- Proprietorship firms
- Partnership firms
- Limited Liability Partnerships (LLPs)
- Private Limited & Limited Companies
- Co-operative Societies (including co-op spinning mills & co-op powerlooms)
- Textile Parks / Special Purpose Vehicles (SPVs)
- Women-led enterprises
- SC / ST / Minority / Ex-Serviceman entrepreneurs
- Units with green technology adoption
- Registered textile units under TRN (Textile Registration Number)
Regional Balance
4 Zones of Maharashtra
Incentives are zone-wise, with higher benefits in under-developed zones to drive balanced regional development.
1
Vidarbha
Nagpur & Amravati divisions
Districts
Akola, Amravati, Buldhana, Yavatmal, Washim, Bhandara, Chandrapur, Gadchiroli, Gondia, Nagpur, Wardha
MSME Capital Subsidy45%
Large Industry40%
Mega Industry55% / ₹250 Cr
2
Marathwada + Khandesh
Aurangabad division + Dhule & Jalgaon
Districts
Aurangabad, Jalna, Beed, Latur, Osmanabad, Nanded, Hingoli, Parbhani, Dhule, Jalgaon
MSME Capital Subsidy40%
Large Industry35%
Mega Industry50% / ₹225 Cr
3
North Maharashtra
Nashik division (excl. Dhule & Jalgaon)
Districts
Nandurbar, Nashik, Ahmednagar
MSME Capital Subsidy35%
Large Industry30%
Mega Industry45% / ₹200 Cr
4
West Maharashtra + Konkan
Pune & Konkan divisions
Districts
Mumbai City, Mumbai Suburban, Raigad, Ratnagiri, Sindhudurg, Thane, Palghar, Pune, Kolhapur, Sangli, Satara, Solapur
MSME Capital Subsidy30%
Large Industry25%
Mega Industry40% / ₹175 Cr
Note on Ultra Mega Projects: A High-Powered Committee headed by the Chief Secretary will determine special incentive packages for Ultra Mega projects (FCI >₹1,000 Cr or employment ≥2,000). Investment must be made within 10 years from the date of the Letter of Intent.
Capital Support
Capital Subsidy — Zone-Wise Structure
Subsidy on eligible Fixed Capital Investment (FCI) excluding land & building. For Mega projects, the percentage or the rupee cap applies — whichever is lower.
| Project Category | Zone 1 | Zone 2 | Zone 3 | Zone 4 |
|---|---|---|---|---|
| Micro, Small & Medium (MSME) | 45% | 40% | 35% | 30% |
| Large Industry | 40% | 35% | 30% | 25% |
| Mega Industry | 55% or ₹250 Cr (whichever lower) | 50% or ₹225 Cr (whichever lower) | 45% or ₹200 Cr (whichever lower) | 40% or ₹175 Cr (whichever lower) |
| Ultra Mega Industry | Special package of incentives approved by High-Powered Committee (investment within 10 years of LoI) | |||
Additional 5% Capital Subsidy is available for:
- SC / ST / Minority / Ex-Serviceman units
- Women-led projects (where more than 50% of employees are women — crèche facility is mandatory for additional subsidy)
Capital Subsidy Release: Paid in two installments after commencement of commercial production —
60% after 12 months and 40% after 24 months.
Total Subsidy Cap: The aggregate of all incentives (Central + State + other departments) shall not exceed 100% of the Fixed Capital Investment (FCI). (GR §6(6))
Solar Power Plant Benefits
To promote renewable energy and reduce power costs in the textile sector.
Textile units can include solar projects in their investment plans and avail subsidies. Existing units get electricity subsidy for 2 years; after that, an amount equal to the electricity subsidy is converted into capital subsidy for setting up a solar power plant.
Subsidy Limits — Two Distinct Caps
| Parameter | General / Private Units | Co-operative Spinning Mills only |
|---|---|---|
| Capital Subsidy Cap | ₹4.8 crore | ₹9.6 crore |
| Applicable Entities | Private / general textile units (MSME, Large, Mega) | Co-operative Spinning Mills & Co-operative Powerlooms only |
| Electricity Subsidy Equivalent | 12 months | 24 months |
| Maximum Solar Capacity | 4 MW | 4 MW |
| Applicable Rule | Whichever is lower — subsidy cap, electricity equivalent, or 4 MW capacity | |
The ₹9.6 crore / 24-month cap applies only to co-operative spinning mills and co-operative powerlooms. All other units (private, MSME, large, mega) are capped at ₹4.8 crore (12-month electricity subsidy equivalent).
Key Features
- DPR Inclusion: For new / expansion units, solar plant cost can be included in the Detailed Project Report (DPR) and counted under eligible Plant & Machinery — up to 4 MW, excluding land & building — to calculate subsidy.
- Two Equal Installments: Subsidy is released in 2 equal parts with a 6-month gap between them, after the solar plant becomes operational.
- Net Metering: No 1 MW cap on net metering for textile units — they can fully utilize the solar energy produced.
- Transmission Charges Only: The Energy Department will not levy any charge other than "transmission charges" on renewable power (solar, wind, etc.) projects.
- DPR Approval: Solar project DPR must be approved by MEDA or any other agency designated by the Government from time to time.
Above 4 MW: Units can set up plants above 4 MW, but the additional cost for capacity above 4 MW must be borne entirely by the unit.
In all cases, total solar capacity cannot exceed the approved contracted load / demand of conventional energy.
Beyond Capital Subsidy
Other Key Benefits
Infrastructure, technology upgradation, sustainable incentives and sector-specific benefits.
| Benefit Category | Subsidy / Support | Applicable To |
|---|---|---|
| Power Tariff Subsidy | As per Appendix "A" rates (not a flat "up to ₹4/unit"). Actual rates:
|
Registered textile units; existing units limited to 2 years only. After 2 years, 12 months' (general) or 24 months' (co-op spinning mills) electricity subsidy equivalent is converted into capital subsidy for a solar plant (see Solar section). |
| Common Effluent Treatment Plant (CETP) | 50% capital subsidy or up to ₹5 crore, whichever is less | All zones; new projects; cluster-approved CETPs |
| Zero Liquid Discharge (ZLD) | 50% of civil infrastructure + machinery cost, up to ₹10 crore (land cost excluded) | All zones |
| Common Steam Generation Plant | 50% or ₹1 crore, whichever is less | Textile clusters / textile parks across all zones |
| Waste Recycling Projects | 50% or ₹2 crore, whichever is less | Max 12 projects (2 per revenue division, 6 divisions); DPR approved by State committee |
| Maha-TUFS (Technology Upgradation) |
Zone 1: 40% or ₹25 Cr Zone 2: 35% or ₹20 Cr Zone 3: 30% or ₹15 Cr Zone 4: 25% or ₹10 Cr |
Co-op spinning mills & private powerlooms (existing machinery must have completed 15 years of production; positive net worth; green energy use; 50% govt equity repaid for co-ops) |
| Textile Parks / Common Infrastructure | Central: up to 40% or ₹40 crore State: up to ₹9 crore or 9% of FCI (whichever lower) |
Approved textile parks (13 parks currently) |
| Technical Textile Parks | 55% or ₹250 crore (whichever lower) for parks with FCI between ₹400–1000 Cr. Parks with FCI above ₹1000 Cr treated as Ultra Mega. 100% women-operated parks get extra 10% capital subsidy (subject to overall cap). | 6 parks across 6 revenue divisions (mapped to zones: 2 in Zone 1/Vidarbha, 2 in Zone 4/West MH+Konkan, 1 each in Zone 2 & 3); min 10 units per park; no single unit >25% of park area; min FCI ₹400 Cr |
| R&D Support | ₹50 crore annual fund | Technical textile research & innovation |
| Additional 5% Capital Subsidy | Additional 5% on eligible FCI | SC/ST, Minority, Ex-Serviceman units; women-led projects (>50% women workers + crèche facility) |
Co-operative Structure
Co-op Spinning Mills & Co-op Powerlooms
Shareholding pattern (Member : Government : Financial Institution) by zone — per GR Tables 2 & 7.
| Zone | Member Shareholding | Government Shareholding | Financial Institution Loan |
|---|---|---|---|
| Zone 1 | 5% | 45% | 50% |
| Zone 2 | 10% | 40% | 50% |
| Zone 3 | 15% | 35% | 50% |
| Zone 4 | 20% | 30% | 50% |
Important: Co-operative spinning mills / co-op powerlooms that avail government equity are NOT eligible for capital subsidy (CIS).
Sector-Specific Support
Sub-Sector Specific Benefits
Handloom, Sericulture, Traditional Textiles, Wool, Marketing & Skill Development (per GR §7.4–7.12).
Handloom Sector
- Urban Haat: Up to ₹800 lakh per project — Centre 80% (₹640 lakh) + State 20% (₹160 lakh)
- Raw Material Supply Scheme (RMSS): Central + State support on cotton hank yarn, home silk, wool, linen and natural blended yarn (via DBT to linked bank account). Note: GR text states "55% Central + 55% State = total 30% effective subsidy" — figures as printed in GR; verify current rates with the Textile Department.
- Handloom Weaver Welfare (HWCWS): Annual premium ₹330 — Centre ₹150 + State ₹180; life cover ₹2 lakh (age 18–50)
- Weaver Mudra Loan: Concessional credit under the National Handloom Development Programme (NHDC) framework
- Mega Handloom Cluster: Cluster Development Programme support for handloom clusters, including IIHT-related projects
- Free Electricity: Up to 200 units/month to handloom weaver families
- Online marketing: mahahandloom.com web portal for wholesale incentives
Sericulture
- Increase average cocoon yield from 60 kg to 70 kg per 100 DFLs
- Expand mulberry acreage by 10,000 acres in 5 years; add 2,000 Tasar farmers
- New Grainage Centres at Aurangabad + 2 additional in Zone 1 & Zone 3
- Silk Samagra-2: Central 50%, State 25%, Beneficiary 25% (General); 65:25:10 (SCSP/TSP); 80:10:10 (Special status states)
- ARM Shed Subsidy: 50% of DSR cost, capped at: ₹40 lakh (min 400 ends / 40 basins), ₹20 lakh (min 200 ends / 20 basins), ₹15 lakh (min 120 ends / 12 basins); MRM shed ₹3 lakh (min 100 ends / 10 basins); Reeling machine shed ₹6 lakh
- Open Cocoon Markets at Jalna & Solapur + 2 more (Zone 1 & 3); Silk Exchange at Jalna & Baramati; Tasar Cocoon Market at Armori (Gadchiroli)
- Silk Tourism Corridor at Aurangabad (Paithani)
Traditional Textiles
- 5 recognized traditional textiles: Paithani (Aurangabad), Himroo (Aurangabad), Karvat Kathi (Vidarbha), Ghongadi (West Maharashtra), Khan Khesh (South Maharashtra)
- Ganesh Chaturthi allowance: ₹10,000 per male weaver; ₹15,000 per female weaver — for verified & registered weavers in the 5 recognized traditional textile segments
- National Handloom Day Design Awards: 1st ₹20,000; 2nd ₹15,000; 3rd ₹10,000
- Old-age pension scheme for traditional weavers after age 60
- Master Trainer registration under Skill Development (honorarium per Skill Dept. policy)
Wool & Non-Conventional Fibre
- All wool processing segments (spinning, processing, weaving, hosiery, garmenting) get capital & power subsidy at respective segment rates
- PPP pilot processing unit for "Deccan Wool" with Wool Research Association (Thane)
- Non-conventional fibre (bamboo, banana, maize, ambadi, ghaypat, kashya, etc.) — capital & power subsidy as per zone (Table 14)
- Skill development & "Mendhapal" grazing land action plan for shepherds
Marketing Incentives
- "Handloom Mark", "Silk Mark", "India Handloom Brand" — special identity for Maharashtra handloom products
- 4 special exhibitions/year in major cities outside Maharashtra — ₹50 lakh per exhibition
- Captive Market: Free saree per year for every family below the poverty line (detailed guidelines to be issued separately)
- MSTDC as nodal agency for handloom product marketing
Skill Development & Capacity Building
- Handloom weaver training via Weaver Service Centres / Technical Training Institutes
- New Training Centres: 50% of total cost or up to ₹20 lakh per centre (incl. installation, electrification, furniture)
- Short-term courses / vocational training by Skill Development Dept.
- MoUs with Clothing Manufacturers Association of India / DKTE Textile & Engineering Institute
- MoUs with IIT Mumbai, NIFT Mumbai, VJTI (Sasmira) for modern tech & design R&D
Coverage
Eligible Sectors & Activities
Complete textile value chain — from fibre to finished product — plus technical and emerging areas.
Core Textile Sectors
- Ginning & Pressing
- Spinning Mills (Co-operative & Private)
- Powerloom / Weaving (Co-op & Private)
- Handloom Sector
- Processing (Dyeing / Printing / Finishing)
- Knitting / Hosiery / Garmenting
- Synthetic / Non-conventional Yarn
- Wool Processing
- Sericulture (Tasar & Mulberry)
- Technical Textiles
Supporting Activities & Projects
- Setting up or expanding textile units across the value chain
- Installing new machinery & upgrading to modern technology
- Building and running Textile / Technical Textile Parks
- Adopting green technologies (solar, recycling, ZLD, CETP, common steam)
- Skill development & worker training programs
- R&D in sustainable textiles & technical textiles
- Waste recycling projects (max 12 across the state)
- Common Steam Generation Plants for textile clusters
- Traditional textile segments (Paithani, Himroo, Karvat Kathi, Ghongadi, Khan Khesh)
- Wool processing & Deccan wool value chain projects
Get Started
Application Process & Documents
Simplified approval flow — from online registration to disbursement.
How to Apply
7-step simplified flow
- 1Register online on the Maharashtra Textile Portal — mahatextile.maharashtra.gov.in
- 2Obtain TRN (Textile Registration Number) — mandatory for additional subsidy benefits
- 3Submit application along with Detailed Project Report (DPR)
- 4Scrutiny by Directorate of Textiles
- 5Approval by State Level Committee
- 6Sanction letter issued
- 7Disbursement after investment & compliance verification
Capital Subsidy Release: 60% after 12 months and 40% after 24 months of commercial production (post-commissioning).
Documents Required
Checklist for application
- Udyam Registration certificate
- Company Incorporation / Partnership Deed / LLP documents
- Detailed Project Report (DPR)
- Land documents / Lease deed
- Building plan approval
- Machinery quotations & invoices
- CA Certificate of Investment
- Electricity connection proof
- Pollution NOC
- Bank sanction letter (if bank-financed)
- PAN & Aadhaar of promoters
- Proof of women / SC / ST / Minority / Ex-Serviceman participation (if applicable)
Watch & Learn
Detailed Video Guides
Complete explanation of ISTP 2023–28 by Amplus Subsidy Solutions.
Part 1: Scheme Overview & Benefits
Part 2: Solar Benefits & Application Process
Need Expert Assistance?
Get end-to-end support for DPR preparation, application filing, and subsidy disbursement follow-up under ISTP 2023–28.
Questions
Frequently Asked Questions
Key points about ISTP 2023–28.
Who can get benefits under this textile policy?
Proprietorship firms, partnerships, LLPs, private/limited companies, co-operative societies, textile parks/SPVs, women entrepreneurs, and SC/ST/Minority/Ex-Serviceman units — all registered textile units in Maharashtra with a TRN.
What is the policy validity period?
Valid up to 31 March 2028 from the GR date (02 June 2023). If a new policy is not ready by then, it will automatically extend by 1 year.
What kind of support is available?
Capital Subsidy (up to 55%), Power Tariff Subsidy (Appendix A rates — ₹2.00 to ₹3.77/unit, with ₹40 lakh/month cap), Solar Plant support (up to 4 MW), CETP/ZLD infrastructure support, Maha-TUFS technology upgradation, waste recycling support, textile & technical textile park support, and additional 5% subsidy for women/SC/ST/Minority.
Is there special help for women or SC/ST/Minority?
Yes — an additional 5% capital subsidy is available for SC/ST/Minority/Ex-Serviceman units and for women-led projects (with >50% women workers and mandatory crèche facility). 100% women-operated Technical Textile Parks get an extra 10% capital subsidy (subject to overall cap).
What is the solar subsidy limit?
Capital subsidy covers up to 4 MW solar capacity. Caps: ₹4.8 crore for general/private units (12-month electricity subsidy equivalent) or ₹9.6 crore for co-op spinning mills & co-op powerlooms only (24-month equivalent), whichever is lower. Subsidy is paid in 2 installments after commissioning.
How are the 4 zones different?
Capital subsidy rates are higher in under-developed zones: Zone 1 (Vidarbha) at 45% for MSMEs, down to Zone 4 (West Maharashtra/Konkan) at 30%. This encourages balanced regional development.
How is the Capital Subsidy released?
After commercial production begins, subsidy is paid in 2 installments: 60% after 12 months and 40% after 24 months. Total incentives (Central + State + other departments) cannot exceed 100% of FCI.
Is old/used machinery eligible?
No. Only new machinery is eligible. Old or refurbished machinery is not considered under eligible Plant & Machinery (per GR definition of "Eligible Plant and Machinery").
Official Disclaimer: This is a summary of the Integrated and Sustainable Textile Policy 2023–28 issued by the Government of Maharashtra (GR No. Policy-2023/CR-81/Tex-5 dated 02 June 2023). Scheme details, subsidy calculations and disbursement conditions are subject to the applicable GR, amendments and implementation instructions. For complete and updated information, please refer to the official Maharashtra Textile Department website (mahatextile.maharashtra.gov.in) and the Government of Maharashtra GR portal (gr.maharashtra.gov.in). Last reviewed: 17 October 2026.