25% to 50% Subsidy Incentives to Industrial Park in Gujarat
25% to 50% Subsidy Incentive is available to Industrial Park in Gujarat.
Setting up of industrial Parks / estate is one of the important infrastructure components for Industrial development. The State Government is encouraging participation of private sector for setting up Industrial Parks / estates. The Industrial Policy 2020 emphasizes on continuing the financial assistance for Industrial Parks. The Industrial Policy seeks to crate an adequate provision which aims to further upgrade and improve the status of infrastructure in the State. Private Participation in infrastructure development helps bring the latest technologies, facilities and operations to the region. The policy aims to incentivize cost of building and infrastructure facilities and other facilities as may be required for the development of such parks.
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 Industrial 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,
Partnership Act,
Trust Act,
Companies Act
or SPV (Special purpose venture) constituted for setting up of Industrial Park shall be eligible to develop Industrial Park under this scheme.
What is Industrial Park?
Industrial Park means an estate which is developed in at least minimum area of 20 Hectares (2 lacs sq. meter) for establishment of minimum 10 Industrial Unit, and minimum 2 units for each additional area of 5 hectares or part thereof, to manufacture such as developed plot and having basic infrastructure facilities, sewage, power distribution, communication facilities, hostel for workers and such other facilities/services as may be required.
In case of Vanbandhu taluka minimum area required for industrial park is 5 hectares for establishment of minimum 5 Industrial units and minimum 1 unit for each additional area of 1 hectare.
Industrial Park above 100 hectares will be facilitated and assisted by Government in peripheral external link infrastructure like road, facilities for drawl of water, drawl of power including substation, gas and effluent disposal etc.
Industrial Parks which are being set up in the land allotted by GIDC or in closed textile mills / closed Industrial units will also be eligible under this scheme.
The Institution which purchases land for setting up an Industrial Park will be considered as bonafide Industrial user of land and eligible to obtain permission under Gujarat Tenancy and Agricultural Lands laws (amendment) act, 1997. Such Industrial Park can allot the plot/ shed to Industrial Project.
What are minimum facilities required at Industrial Park?
The following Infrastructure Facilities are required to be provided by the Developer to set up Industrial Park.
- Internal Roads.
- Substation to draw power for requirement of park
- Power distribution lines
- Communication facilities
- Water distribution lines and water augmentation facilities
- Sewage and drainage facilities
- Common parking
- Other facilities as may be required in the park
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 Industrial Park and type of Industrial Park.
Which Type of Cost is eligible for subsidy to Industrial 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 Industrial Park for providing specific infrastructure facilities / services to the units located 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. |
| Hostel / Dormitory | The Cost incurred for New Building constructed for Hostel /Dormitory in and around the Industrial Park with specific infrastructure facilities / Services for residential facilities to domicile workers of the units located in the park will be eligible. This would also include other common facilities like canteen, labour welfare centre, child care center, RO Plant, playground, underground facilities etc. as per relevant SOR. |
| Other Construction | The Cost of other infrastructure facilities includes facilities like boundary wall and other related infrastructure for security of the park as may be required to facilitate the units located 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. However, the SLEC may review the norms for construction cost of these infrastructure facilities in accordance to the location, area of Industrial Park and type of Industrial Park. |
What kind of expenditure is not eligible for Capital Subsidy under this scheme?
Expenditure incurred towards 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 anywhere in Gujarat and @50% of The Eligible Fixed Capital Investment in Vanbandhu Taluka.
- 100% Stamp duty paid on purchase of land will be reimbursed.
In addition, @25% of the cost of Hostel / Dormitory Housing for Domicile workers.
The total assistance of both State Government and Central Government should not exceed 60% of the project cost in normal taluka and 80% of Project Cost in Vanbandhu Taluka.
What is the Maximum ceiling Limit of Capital Subsidy?
The maximum ceiling is Rs. 30.00 Crore in both cases.
The Maximum upto 20 crores of the cost of Hostel / Dormitory
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 Industrial Park?
After approval park should be completed in 3 years from the date of sanction letter. Maximum 1 year can be extended on request to SLEC.
When Private Developer can apply for Capital Subsidy?
The registration for setting up of Proposed Industrial 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 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
- Plot to be sale at concessional rate considering the incentive received from Government.
- Manage, Maintain and operate park minimum 5 years after its completion
- Submit allotment price to Industrial Commissionerate.
