Aatmanirbhar Gujarat Scheme: Empowering Large Industries and Thrust Sectors
Aatmanirbhar Gujarat Scheme: Empowering Large Industries and Thrust Sectors
Gujarat, renowned for its robust industrial ecosystem and investment-friendly policies, continues to drive economic growth through strategic support for large industries. The Aatmanirbhar Gujarat Scheme for Assistance to Large Industries and Thrust Sector exemplifies the state’s commitment to fostering substantial industrial investments and enhancing local manufacturing. This comprehensive blog will delve into the scheme’s benefits, eligible sectors, and specific incentives, offering a clear understanding of how it aims to bolster economic development.
The Importance of Large Industries
Large enterprises are pivotal in regional industrial development, creating a ripple effect that stimulates local economies and generates employment opportunities. Gujarat’s extensive infrastructure and proactive government policies have attracted numerous large-scale investments across various sectors. These investments not only contribute significantly to the state and national economy but also create substantial opportunities for MSMEs through forward and backward linkages.
Thrust Manufacturing Sectors
The scheme identifies specific sectors that qualify as thrust manufacturing sectors, encouraging investments in innovative and sustainable industries. These sectors include:
- Green Energy Ecosystem
- Green Hydrogen/Green Ammonia
- Electrolyser
- Renewable Energy Equipment
- Battery Storage
- Fuel Cells
- Mobility
- Aviation-related Manufacturing
- Electric Vehicles
- Auto or Auto Components
- Space-related Manufacturing
- Capital Equipment
- Electric Machinery and/or Equipment
- Industrial Machinery and/or Equipment
- Telecom-related Machinery and/or Equipment
- Metals and Minerals
- Metals
- Minerals Processing
- Ceramics
- Textile & Apparel
- Technical Textiles
- Textile Apparel & Garments
- Sustainability
- Municipal Solid/Liquid Waste Recycling Equipment Manufacturing
- Agro Processing
- Agro and Food Processing
- Gems and Jewellery
- Gems and Jewellery, including Lab-grown Diamonds
- Healthcare
- Pharmaceuticals and/or APIs
- Medical Devices
Incentives and Assistance
The scheme provides several incentives to large industrial undertakings to encourage investment and support local manufacturing:
Interest Subsidy
The scheme offers interest subsidies on term loans for large industries based on the category of the taluka:
| Category of Talukas | General | Thrust |
|---|---|---|
| Category 1 | Interest subsidy @ 7% on Term Loan for 10 years up to 1% of eFCI p.a | Interest subsidy @ 7% on Term Loan for 10 years up to 1.2% of eFCI p.a |
| Category 2 | Interest subsidy @ 7% on Term Loan for 8 years up to 1% of eFCI p.a | Interest subsidy @ 7% on Term Loan for 10 years up to 1% of eFCI p.a |
| Category 3 | Interest subsidy @ 7% on Term Loan for 6 years up to 1% of eFCI p.a | Interest subsidy @ 7% on Term Loan for 8 years up to 1% of eFCI p.a |
This table succinctly displays the interest subsidy details for different categories of talukas under the Aatmanirbhar Gujarat Scheme.
Net SGST Reimbursement
Eligible large industrial undertakings can claim reimbursement of net SGST based on the taluka category:
| Category of Talukas | General Sector | Thrust Sector |
|---|---|---|
| Category 1 | 100% of net SGST for 10 years up to 7.5% of eFCI p.a. | 100% of net SGST for 10 years up to 8% of eFCI p.a. |
| Category 2 | 90% of net SGST for 10 years up to 6.5% of eFCI p.a. | 90% of net SGST for 10 years up to 7% of eFCI p.a. |
| Category 3 | 80% of net SGST for 10 years up to 5% of eFCI p.a. | 80% of net SGST for 10 years up to 5.5% of eFCI p.a. |
The period of 10 years shall be from the date of commencement of commercial production.
EPF Reimbursement
Eligible large industrial undertakings can claim reimbursement of the employer’s contribution under Employees’ Provident Fund (EPF) for new employees working in Gujarat:
- Criteria: 100% of the employer’s statutory contribution under EPF for 10 years, with a ceiling of 12% of the employee’s basic salary plus applicable Dearness Allowance (DA) or INR 1800 per month, whichever is lower.
Conclusion
The Aatmanirbhar Gujarat Scheme for Assistance to Large Industries and Thrust Sector is a testament to Gujarat’s dedication to fostering industrial growth and economic development. By providing targeted incentives and support, the scheme encourages investments in key sectors, drives local manufacturing, and generates employment opportunities. Large enterprises looking to expand or establish their presence in Gujarat can significantly benefit from this progressive initiative, contributing to the state’s vision of sustainable and inclusive growth.