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Wednesday, September 23rd, 2020

Gujarat Industrial Policy 2020 - State will offer Special Incentives to companies planning to relocate from other countries

INVC NEWS

Mumbai ,  

Chief Minister of Gujarat Mr. Vijay Rupani, announced the New Industrial Policy 2020 for Gujarat with an expected average annual outlay of up to Rs 8000 crore.

Chief Minister expressed happiness over the highest national increment of 240% in FDI inflows from previous year as against a growth of 14% in FDI in India in FY 2019-20

“The Gujarat Industrial Policy 2015 has supported overall industrial development across the state”- CM Vijay Rupani

The key focus of the policy is towards inclusive & balanced regional development, employment generation, Next generation Industry 4.0 led manufacturing so as to contribute significantly to the vision of “Aatmanirbhar Bharat” as laid out by the Hon’ble Prime Minister of India.

Key Highlights of the Policy:

-          15 Thrust Sectors have been conceptualized with a view on global investment trends, the need for strengthening the integrated value chains, exports, policies by the government of India, NITI Aayog etc. The thrust sectors have been categorized in two major groups’ i.e Core sectors & Sunrise Sectors. Thrust sectors will be given incremental incentives as part of the policy.

 

-          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. There is no upper ceiling on the amount of incentive to be given to any particular unit. This will help in grounding major investments in the state.

 

-          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.

 

-          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 the manufacturing sector.

 

-          Besides this, 1% additional interest subsidy to young entrepreneurs below the age of 35 years on the date of sanction of loan.

 

-          The New Gujarat Industrial Policy 2020 will offer interest subsidy upto 7% upto INR 35 lakhs per annum for a period upto 7 years to these service sector MSMEs in the state including those engaged in Financial Services, Healthcare Services, Audio Visual services, Construction related engineering services, Environmental services etc.


-          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.

 

-          Incremental benefits will be given to industries setting up operations in industrially less developed talukas.

 

-          For start-ups, seed support has been increased from INR 20 lakh to upto INR 30 lakh. Sustenance Allowance has been increased from INR 10,000 per month for one year to INR. 20,000 per month per startup for one year & INR 25,000 per month per startup for one year for start-ups having at least 1 woman cofounder.

 

-          Gujarat will offer Special Incentives to such companies planning to relocate from other countries.

 

-          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 colleges approved by AICTE, will be considered @ 50% of project cost, excluding cost of land and building, subject to maximum Rs. 50 Lakhs.

 

-          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). The policy will provide 80% of financial assistance upto INR 25 crore for Dormitory Housing in manufacturing clusters in order to provide better living conditions for labourers in industrial clusters.

 

-   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.

 

-  Support for Common environment infrastructure facilities increased from existing 25% to 40% of the project cost upto INR 50 crore. Development of Green Estates: Assistance of up to 25% of project cost upto INR 25 crore for set up/ relocation / retrofitting of existing polluting industrial units into Green Industrial Estates.

 

-  Skilling and Training Support: The state will undertake a gap analysis of Skill requirement of industries & available workers across various sectors in the state. This will help create a roadmap for training the local population in relevant skills and thus bridge the gap.

 

-  A dedicated organization “GARUD” has been formed by the state government to ensure easy movements of goods inter & intra state and increase exports. The infrastructure created under this authority will support industries to incur less production costs and therefore will have a competitive edge against other developing economies.

 

-  Dedicated “Relationship Managers” will be nominated by Industrial Extension Bureau (iNDEXTb) for investors as a single point of contacts for all government related queries & approvals.

 

-    Investor Facilitation Portal (IFP) – Mega Online Permission: Almost 5 lakh applications have been processed from state Single Window: Investor Facilitation Portal (IFP). To further strengthen the Ease of Doing Business Environment in the state, a framework for “Mega Permission” is being prepared, which requires investor to submit only one application form for 26 different state related approvals and compliances to be processed in an expedited manner.

 

-  Centralized Inspection System: The state has also initiated the process for streamlining Central Inspection System to further bring transparency and facilitate ease of doing business.

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