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Industrial Subsidy

The industrial Policy 2020 envisions Gujarat as a Global Business destination for next-generation sustainable manufacturing & service industry that stimulates sustainable development & balanced regional growth. The Industrial Policy focuses on Vocal for Local to become Global & support for development of MSMEs & to focus Export competitiveness. In view of this policy, a scheme is introduced for giving incentives to new investments in the state of the manufacturing sector in order to boost overall economic growth in state & generate Employment opportunities.

Gujarat Government gives various subsidies to industrial units in various sectors to boost up industries in the Economy. The subsidies are given for setting up of the new unit, Expansion of the unit or at time of Backward or Forward integration process.

Type of Subsidies:

1. MSME Subsidy:

Composite Criteria – Investment @ P&M & Annual Turnover
Classification Micro Small Medium
Manufacturing & Services Investment < Rs1Cr
and
Turnover < Rs 5 Cr
Investment < Rs 10Cr
And
Turnover < Rs 50 Cr
Investment < Rs 50Cr
and
Turnover < Rs 250 Cr

The Industrial unit will get MSME subsidy based on % of Term Loan amount and hence under MSME Policy it is compulsory to avail Term Loan.

Sr No. Particular Taluka Category
01 02 03 & Municipal
1 Quantum of Assistance 25% of TL Disbursement 20% of TL Disbursement 10% of TL Disbursement
2 FCI < Rs 10 CR Rs 35 lakh pa Rs 30 Lakh pa Rs 10 Lakh pa
3 FCI > Rs 10 CR Rs 45 lakh pa Rs 37.50 Lakh Rs 15.00 Lakh

02. Large & Thrust Sector Subsidy:

The industrial unit will get Capital Subsidy.

Taluka Category General Sectors Thrust Sectors
Category 1 10% of eligible FCI (excluding land) 12% of eligible FCI (excluding land)
Category 2 8% of eligible FCI (excluding land) 10% of eligible FCI (excluding land)
Category 3 4% of eligible FCI (excluding land) 6% of eligible FCI (excluding land)

Thrust sector means the sectors which is most potaential sector and needs additional support to empower them for global competitiveness.

3. Electricity Duty Exemption:

The industrial unit will get Electricity Duty Exemption for 5 years from the date of commencement of production.

4. Textile Policy:

Scheme-1 Interest Subsidy Interest subsidy will be given to Industrial units ranging from 4% to 6% for 5 years. (Max 20 cr p.a.)
Scheme-2 Power Tariff Subsidy Power tariff subsidy will be given to industrial units ranging from Rs.2 to Rs.3 per billed unit (Kwh) having LT/HT connection for 5 years from the date of commercial production.
Scheme-3 Assistance for Energy & water conservation and environment compliances Assistance of 20% of cost of Machinery and equipment, maximum upto 30 lakhs which will be separately in each case of Energy conservation, Water conservation and Environment compliance. Assistance at 50% fees paid towards Energy audit (Max 1 Lakh).
Scheme-4 Assistance for technology acquisition & upgradation The Enterprise acquiring the technology will be provided financial assistance of upto 50% of the investment for technology acquisition/upgradation with maximum of Rs. 25 lakh.
Scheme-5 Support for Establishing Textile Park 1. Entity establishing Textile Park on minimum 25 acres land and minimum 20 number of enterprises will be eligible at financial assistance at 25% of capital expenditure for establishing common facilities, common infrastructure and additional infrastructure (except land cost), maximum upto 15 cr.
2. The developer will be eligible for reimbursement of 100% stamp duty paid on purchase of land.
3. In addition, the park will be provided financial assistance @ 25% of the cost of Hotel/Dormitory Housing within the park. (Max 7.50 cr)

5. Logistics Park Policy:

Logistics Parks, Inland container depot, container freight station, Air freight station, private freight terminal, air cargo complexes, cold chain facilities, warhouse, non-private jetties which are mainly related to provide Logistics services will be eligible for financial assistance:

@ 25% of capital expenditure (excluding land) subject to maximum limit of Rs. 15cr of interest subsidy @ 7% for 7 years subject to maximum 50 lakhs p.a of reimbursement of 100% of stamp duty paid on purchase of land.

6. Factory Rent subsidy:

Max 1 lakh for 5 years

7. Power connection subsidy:

35% of expenditure (Max 5 lakh)

8. Exhibition subsidy:

Max 5 lakh

9. National & international certification (BIS/ISI/GMP/HALLMARK) subsidies and also for testing equipment:

50000 for certification and Maximum 10 lacs for Equipment

10. Patent subsidy:

75 % of cost (Max 25 Lakh)

Types of services we offer:

At Ratnaafin, we provide consultancy service related to Gujarat Govt Subsidy for all industrial sectors like pharma, chemicals, textiles, food processing, engineering, auto & auto component etc.

Why choose Ratnaafin Advisory's Industrial Subsidy?
  • Expert team having detailed knowledge of various industrial subsidies.
  • Timely Processing of subsidy applications
  • Quick and satisfactory services to clients & provide end to end solution related to subsidy applications
  • Advising in structure of loans to maximise subsidy benefits.
  • Guiding in preparation of project reports, other documents etc.

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