25% Capital Subsidy and 7% Interest Subsidy to Biotechnology Units in Gujarat
25% Capital Subsidy and 7% Interest Subsidy to Biotechnology Units in Gujarat
Biotechnology industry has emerged as a force multiplier in creating growth opportunities with a potential to provide an array of solutions for challenges in sectors such as health, agriculture, environment, energy and industrial processes. Gujarat leads the efforts and has achieved the distinction of being a leader in manufacturing sector including Pharmaceuticals, Chemicals, Petrochemicals, Cement and Power. The COVID-19 pandemic and investments in Research & Development has allowed the biotechnology sector to build upon its traditional strengths in vaccine manufacturing, agricultural sciences, and clinical research while creating urgent capacity for industrial applications and bio-services. It also has paved a way for biotechnology-driven, socially-relevant innovation and technology development. Gujarat’s Biotechnology sector has more than 200 biotechnology companies and a thriving start-up ecosystem that includes prominent R&D and educational institutes as well. Gujarat also holds the distinction of having maximum number of patents among all Indian states, with 3,637 licensed units engaged in drug manufacturing. Gujarat has exported drug formulations worth USD 3,054 million in 2019-20 and USD 2,790 million in 2020-21. In order to provide further support to the sector, Government of Gujarat has announced plans to establish a Bulk Drug Industrial Park in Jambusar Taluka of Bharuch District and a Medical Device Industrial Park at Viramgam / Rajkot. The State Government has announced
What is the meaning of Biotechnology?
“The application of Science & Technology to living organisms as well as parts, products and models thereof, to alter living or non-living materials for the production of knowledge, goods and services’’ or as modified by Department of Biotechnology, Govt. of India or its agencies from time to time.
What is the meaning of Biotechnology unit?
‘Biotechnology (BT) Unit’ means a unit or an undertaking engaged or engaging in manufacturing of Biotechnology products or in delivery of Biotechnology related services to any industrial unit. Companies registered under the Companies Act, 1958/ 2013 (or) LLP Act 2008 excluding Sole Proprietorship Companies and Partnership Companies shall be recognized as BT Unit.
Biotechnology (BT) Units deals in What kind of product?
BT units engaged in Manufacturing of Products/ Development of Technologies/ Products such as:
- Vaccines including recombinant vaccines for use in humans or animals
- Recombinant gene therapy products including nucleic acids, proteins and combinations thereof, viruses, or genetically engineered micro – organisms.
- Molecular and Genetic Diagnostics (providing Business to Business services)
- Biochips, Biosensors and Biomedical Devices based on biotechnology
- Stem Cell and Cell-Culture
- RNA Interference (RNAi)
- Products of Synthetic Biology
- Probiotics and other Biotechnology-based nutraceuticals
- Bio-fertilizer, Bio-pesticides and similar products
- Bioplastics
- Biofuels
- Nano-Biotechnology
- Any product/ technology deemed eligible by the Technical Advisory Committee (TAC)
- ‘Biotechnology (BT) Product’ which uses or is derived by using (a) Living systems, (b) Enzymes, (c) Proteins (d) Biocatalysts (e) Biomolecules and any of the following processes:
- Genetic Engineering, Gene Editing
- Protein engineering, Tissue Engineering
- Genomics, Proteomics, Bioinformatics, Synthetic Biology, Pharmacogenomics, Metabolomics
- ano-Biotechnology based processes
- Bio-process Engineering, Fermentation
- Enzymatic processes, Biotransformation
- Tissue Culture
- Molecular Breeding
- Contract Research by CROs using Biotechnology process or products
(Providing Business to Business services)
Any process deemed eligible by the Technical Advisory Committee (TAC)
What is Operative Period of Scheme?
The Operative Period of the scheme shall be Five Years from the date 15/02/2022 (i.e. date of announcement of Biotechnology Policy 2022-27) to 31/03/2027.
What is Mega Project?
Any eligible Biotech Unit with GFCI more than or equal to INR 200 Crores or providing Direct Employment of more than or equal to 500 will be considered as Mega Projects.
What is Special Projects?
Projects of strategic importance, in challenging areas and in emerging technologies will be considered as Special Projects. Indicative projects under this category, are as given below:
(a) Vaccine Production
(b) Gene Splicing
(c) Stem Cell Therapy
(d) Antimicrobial Resistance (AMR)
(e) Molecular Breeding of Animals
(f) Bioplastics
(g) Biofuels
(h) Ecosystem Strengthening Projects
Which Type of Cost included in calculation of Subsidy / Incentives?
Gross Fixed Capital Investment (GFCI) for applicant units, means the investment made in building, plant & machinery and other related fixed assets including common infrastructure such as effluent treatment plant, testing facilities, shared data center, etc. required to manufacture end-products or provide services by eligible unit for setting up new unit or for undergoing expansion/ diversification but excluding cost of land. 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 | Not Covered for the calculation of incentives / subsidy amount. |
| Cost of Building | Eligible Gross Fixed Capital Investment (eGFCI) is to be calculated in a manner that the expenditure on buildings cannot be more than 20% of the eligible GFCI. |
| Other Infrastructure Facilities | The Cost of fixed assets including common infrastructure such as effluent treatment plant, testing facilities, shared data center etc. is eligible GFCI. |
| Other utilities | Expenses towards Computers & Software, Furniture & Fixtures, Office Equipment, Vehicles, etc. (movables items) will NOT be considered towards eligible GFCI |
How much Subsidy is available under the scheme?
The subsidy is available as follow:
| Sr. No.
| Type of Subsidy | Units with GFCI less than INR 200 Crores | Mega & Special Units (GFCI more than INR 200 Crores) | Disbursement
| |
| 1.
| Capital Subsidy | 25% of eGFCI ceiling amount is INR 40 Crores | 25% of eGFCI ceiling amount is INR 200 Crores | Twenty (20) Quarterly installments spread over Five (5) Years. | |
| 2. | Operational Assistance | 15% of Operational Expenditure with ceiling of INR 5 Crores per annum | 15% of Operational Expenditure with ceiling of INR 25 Crores per annum | On approval of Application by the committee | |
| 3. | Employment Generation Incentive | 50% of CTC with a ceiling not exceeding INR 50000 per male employee and not exceeding INR 60000 per female employee. | 50% of CTC with a ceiling not exceeding INR 50000 per male employee and not exceeding INR 60000 per female employee. | Beneficiary shall choose any one option amongst quarterly or half yearly or annual Operational Assistance claim, which shall be applicable for the duration of years from commercial operations date. | |
| 4. | EPF Assistance | 100% of EPF amount paid in case of female employees and 75% EPF amount paid in case of male employees | 100% of EPF amount paid in case of female employees and 75% EPF amount paid in case of male employees | ||
| 5. | Interest Subsidy on Term Loan |
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| ||
| 6. | Electricity Duty | 100% Electricity Duty on power purchased | 100% Electricity Duty on power purchased | ||
| 7. | Facilitation Support | NA | Officer would be appointed as Specific Point of Contact (SPOC) for each project approved under this package. Further, as part of this package, support will be provided through inter-departmental co-ordination for land identification/ mobilization & Trunk infrastructure (approach road, water supply, power, sewerage, etc.). |
What is the Maximum ceiling Limit of Capital Subsidy?
The maximum ceiling is Rs. 40 Crore for BT units’ investment less than 200 Crore.
The maximum ceiling is Rs. 200 Crore for BT units’ investment more than 200 Crore.
What are the steps for getting subsidy / incentives ?
STEPS | |||
| 1. Industry Connect, Query resolution and in principle approval
| 2. Application, Physical verification and Approval of claim amount
| 3. Post – Approval: Disbursal of Capital and Operational Assistance
| 4. Supplementary Claim Physical Verification & Disbursal
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