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New Industrial Incentive (Subsidy) Policy Declared By Gujarat Gov.

New Industrial Incentive (Subsidy) Policy Declared By Gujarat Gov.

Gujarat Industrial Policy 2015 has come to an end as on 31st December 2019. It was further extended up to the date of release of new policy or 31st December 2020 whichever is earlier.There has been very fast growth in our vibrant state and therefore manifold features of the Gujarat Industrial Policy 2015 have been continued. However, some of the important features where modifications have been made are as follows:

(1) Thrust Sectors:


15 Thrust Sectors have been conceptualized with a view on global investment trends, the need for strengthening the integrated value chains, exports, policies by government of India, NITI Aayog etc. The thrust sectors have been categorized in two major groups i.e Core sectors & Sunrise Sectors. Core sectors include areas where Gujarat already has a strong manufacturing base and has potential to accelerate further on a global scale. Sunrise Sectors are sectors which have a significant potential for technological advancement and can contribute to sustainable economic development. Thrust sectors will be given incremental incentives as part of the policy.

(2) Capital Subsidy:

De-link incentives from SGST.Upto 12% of fixed Capital investment will be given to large industries for setting up manufacturing operations in the state in the form of capital subsidy. Therefore, the incentive amount will now be more predictable and transparent and thus help industry to take fast decisions.This benefit will be given over a period of 10 years subject to annual ceiling of INR 40 Crore.Besides this, new industries will continue to get exemption from Electricity Duty for 5 years.

(3) MSMEs:

    • Capital Subsidy: MSMEs will be eligible for Capital Subsidy upto 25% of eligible loan amount
      upto INR 35 lakhs. Additionally, if the eligible fixed capital investment is above INR 10 crores,
      the unit will be eligible for an additional capital subsidy upto INR 10 lakhs.
    • Interest Subsidy: MSMEs will be eligible for Interest subsidy upto 7% of interest levied on
      term loan upto INR 35 lakhs per annum for a period upto 7 years.
    •  1% additional interest subsidy to SC/ST Entrepreneur/ physically challenged entrepreneur/
      Women entrepreneur/ Start Up in manufacturing sector.
    • Besides this, 1% additional interest subsidy to young entrepreneur below age of 35 years on
      the date of sanction of loan.

(4) Government Land to be given on long term lease basis:

The government will facilitate industries in getting “Government Land” on long term lease
upto 50 years(further extendible as per prevailing policy) to industrial enterprises @6% of the
market rate. The industries will be able to mortgage the land.

(5) Balanced Regional Development:

The incentives to all MSMEs as well as large industries have been categorized based on
industrial development in respective talukas. Incremental benefits will be given to industries
setting up operations in industrially less developed talukas.

(6) Support To Start-ups:

    • Seed support upto INR 30 lakh.
    • Sustenance Allowance has been increased to INR 20,000 per month per startup for one year & INR 25,000 per month per startup for one yearfor start-ups having at least 1 woman co- founder.
    •  Additional grant of uptoINR 10 lakh for startups with significant impact on society.
    • Additional fiscal support upto INR 3 lakh per startup will be provided to enroll for national/international recognized acceleration programs.

(7) Relocation Incentives:

In light of CoVID-19, several industries are planning to relocate their operations and/or diversify supply chains. Gujarat will offer Special Incentives to such companies planning to relocate from other countries.

(8) Research & Innovations:

The policy will provide support upto INR 5 crore to private companies/institutions for setting up R&D and product development centres.
Assistance for Contract/Sponsored research work from any industrial enterprise/Industrial association to recognized R&D institution / technical collages approved by AICTE, will be considered @ 50% of project cost, excluding cost of land and building, subject to maximum Rs. 50 Lakhs.

(9) Development Of Industrial Infrastructure:

Policy will provide incentives to private developers for setting up Private Industrial Parks in the state @25% of Fixed Capital Investment upto INR 30 crore. In case of Vanbandhu Talukas, the policy will support setting up of industrial parks @50% of Fixed Capital Investment upto INR 30 crore. This will support industrial infrastructure creation & developing last-mile connectivity. Stamp Duty reimbursements will be given to developers (100% of Stamp Duty) and individual units (50% of stamp duty).

(10) Sustainable Manufacturing:

Upto INR 75 lakh for Zero Liquid Discharge plants: 50% of capital subsidy upto INR 75 lakhs will be given to industries practicing at least 50% waste recovery through Zero Liquid Discharge as certified by GPCB.

(11) Common Environment Infrastructure:

Support for Common environment infrastructure facilities increased from existing 25% to 40% of the project cost upto INR 50 crore.Development of Green Estates

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