25% Subsidy Incentive is available to Logistic Park in Gujarat.
25% Subsidy Incentive is available to Logistic Park in Gujarat.
Gujarat’s economy today has reached a critical size, which is a strong platform to launch itself on an accelerated and high growth trajectory. The state has always been in the forefront of economic growth……
What is Operative Period of Scheme?
The Operative Period of the scheme shall be Five Years from the date 07/08/2020 (i.e. date of announcement of Logistic Policy 2020) to 06/08/2025.
What is meaning of Eligible Institution under the Scheme?
Here, Eligible Institution means any Industries Association / Any enterprise registered under
the Societies Act,
or SPV (Special purpose venture) constituted for setting up of Logistic Park shall be eligible to develop Logistic Park under this scheme.
What is Logistic Park?
Logistic Park means a Park which is developed in at least minimum area of 20 Hectares (2 lacs sq. meter) and providing infrastructure facilities for following Logistic Services for efficient movement and distribution of semi-finished or finished products.
- Cargo aggregation/segregation, distribution,
- Inter-modal transfer of material and container,
- Open and closed storage,
- Ambient condition storage for transit period,
- Custom bonded warehouse,
- Container freight station,
- Material handling equipment and
- Business & commercial facilities
What are minimum facilities required at Logistic Park?
The following Infrastructure Facilities are required to be provided by the Developer to set up Logistic Park.
- Compound Wall
- Internal Roads.
- Administrative Building
- Power distribution lines
- Communication facilities
- Water distribution lines and water augmentation facilities
- Sewage and drainage facilities
- SWD, Sewage lines and its treatment facility
- Drainage lines
- Common parking place for vehicles
- Other facilities as may be required in the Logistic Park
The listed facilities are only indicative and SLEC may approve any additional facilities, if required in Logistic Park based on the need of area/ location. The eligible cost of construction of above infrastructure facilities will be worked out in accordance to relevant SOR norms of concerned Government Department or its undertakings. However, the SLEC may review the norms for construction cost of these infrastructure facilities in accordance to the location, area of Logistic Park and type of Logistic Park.
Which Type of Cost is eligible for subsidy to Logistic Park?
The eligible fixed capital investment of the project will be decided on the basis of the following criteria.
|Eligible Fixed Capital Investment
|Description Of Criteria
|Cost of Land
|The cost of land is not eligible under this scheme.
|Cost of Buildings
|The cost of buildings which is constructed in the Logistic Park for providing specific infrastructure facilities / services in the park will be eligible. Eligible cost will be worked out in accordance to relevant prevailing SOR norms of concerned Government Department or its undertaking.
|The Cost incurred for Transport Vehicle is Not Eligible.
|The Cost of other infrastructure for facilities includes toilets, rest area for drivers of transport vehicles, fire & safety facilities, Security facilities, canteen, Bank, ATM, Clearing Services, health care center within the park and as approved by the SLEC, will be eligible. The eligible cost will be worked out as per as per prevailing SOR of concerned Government Department or its undertaking.
What kind of expenditure is not eligible for Capital Subsidy under this scheme?
Expenditure incurred towards purchase of land and land development, goodwill fees, commissioning fees, royalty, preliminary and pre-operative expenses, interest capitalized, transportation equipments / vehicles, consultancy fees (other than technical consultancy), working capital and other expenditure not specified as eligible investment.
How much Subsidy is available under the scheme?
- The Capital subsidy is available @ 25% of The Eligible Fixed Capital Investment.
- 100% Stamp duty paid on purchase of land will be reimbursed.
The total assistance of both State Government and Central Government should not exceed 60% of the project cost.
What is the Maximum ceiling Limit of Capital Subsidy?
The maximum ceiling is Rs. 15.00 Crore.
How Subsidy will be disbursed?
- The subsidy will be disbursed proportionate to the expenditure incurred towards project. However 15% of the sanctioned assistance will be disbursed only after completion of the park.
- Reimbursements of Stamp Duty will be made only after purchasing total required Land and completing at least 10% of Infrastructure as approved by SLEC.
The disbursement of the subsidy sanctioned will be in four installments based on expenditure incurred at 25%, 50%, 75% and 100% of project cost.
What is time limit to complete Logistic Park?
Park should be completed within period of 3 years from the date of approval letter. Maximum 1 year can be extended on request to SLEC. If the institute fails to complete Logistic Park within prescribed period, this will attract action of recovery of incentives already disburse=sed including reimbursement of stamp duty.
When Private Developer can apply for Capital Subsidy?
The registration for setting up of Proposed Logistic Park shall have to be obtained before initiating the implementation of project at site. Project under execution before obtaining registration will not be eligible for any assistance under the scheme. The following details to be submitted at the time of application of registration.
- Detailed Project Report
- Approved Layout Plan
- 100% Possession of Purchased Land
What is time limit to maintain Park?
The institute shall be responsible to maintain the Logistics Park at least for 10 Years after its completion. If it fails to do so, the incentive disbursed will be recovered from institute as arrears of land revenue under the Land Revenue Laws.
What are the major things to be kept in mind after development of Park?
- Appoint Approved TPQA agency for Third Party Quality Assurance Inspection. TPQA report have to submit at the time of each claim
- Other amenities like fire & safety facilities, Security facilities, canteen, Bank, ATM, Clearing Services, health care center etc. should be made available rental/lease only by developer.
- No Commercial activity other than amenities specified above is allowed the area of logistic park.
- Scheme will not be applicable for the land taken on lease/ rent from government / government organization.