|
INDIAN STATE : GUJARAT
Investment Incentives
Investment Incentives in the Industrial Policy 2003
The Government of Gujarat formulated and announced
a comprehensive Industrial Policy on 21st September
2003 setting futuristic directions for development.
Gujarat provides a conducive Industrial policy and various
incentives to the potential investors
- Scheme of Financial Assistance to the Industrial
unit for Quality Upgradation
- The scheme will be known as financial assistance
to the industrial units for technological upgradation.
- The scheme is applicable to all SSI/SSSBES with
respective DICs or a medium or large units which
has obtained approval under industries (development
and Regulation) act 1951 as amended from time
to time with respect to industrial policy.
- An eligible unit incurring expenditure for acquiring
quality mark such as BSI, ISO 9000 series, ISO
14000 series and ISO 18000 series and other products
specific quality mark such as WHO GMP,CE, HACCP
and others as recognized by the government will
be entitled to avail financial assistance towards
expenditure incurred.
- Expenditure on following items shall be considered
- Payment made to certification agency.
- Cost of acquiring new testing equipment
as suggested by certification agency.
- Expenditure towards calibration charges
of testing equipment, training cost of personnel
conducted by certification agency for acquiring
quality certification.
- The total quantum of assistance will be 50%
of the eligible expenditure subject to maximum
limit of US$ 4340.20.
- The unit, which has availed financial assistance
for BIS quality certification, will be entitled
for ISO series and other quality marks.
- However maximum assistance will be restricted
to US$ 4340.20 per unit under this scheme.
- Total financial assistance under the scheme
of the state government as well as assistance
from government of India will not exceed 50 percent
of the total expenditure incurred by the unit.
- Expenditure for renewal of any quality mark
will not qualify for assistance under this scheme.
- Interest Subsidy Scheme for Small and Medium Enterprises
- Interest subsidy will be available for establishing
new units or for expansion/diversification and
modernization of existing units.
- The unit must start commercial production within
the operative period of the scheme.
- Maximum interest subsidy at the rate of 5 percent
will be available to SME. However, unit will be
required to pay minimum 5 percent interest per
annum to the financial institutions. Accordingly,
if the rate of interest is less than 10%, the
interest subsidy shall be reduced to that extent.
If the unit is availing benefit under government
of India scheme, total interest subsidy by Government
of India and state Government shall be granted
in such a way that the unit shall have to bear
minimum 5 percent interest on the loan.
- The interest subsidy will be available only
on interest levied by the financial institution.
Penal interest or other charges will not be reimbursed.
- The interest subsidy will be available for maximum
5 years limited to maximum of US$10852.54 per
year. The total interest subsidy will not exceed
US$ 54,264.74 in five years period.
- The interest subsidy will be for 5 years or
the period of repayment of loan whichever is earlier.
- Assistance to Research and Development Institutions
and R&D
- The quantum of assistance to proposals received
from the R&D institutions will depend on specific
proposal, its impact on industrial development,
particularly towards small and medium enterprises
and the extent of grant available from the state
government under plan scheme.
- Assistance for sponsored research work from
industrial unit to R&D institution/college
will be in the form of subsidy at the rate of
50% of necessary expenditure incurred towards
such activities subject to a maximum of US$ 10852.54
- Scheme for Financial Assistance to Industrial Parks
- Industrial Park: Industrial park will be provided
financial assistance at the rate of 20 percent
of fixed capital investment in land, building,
and infrastructure facilities upto maximum of
US$216,780.09
- Mini industrial Park: financial assistance at
the rate of 25% of fixed capital investment upto
a maximum of US$ 0.108386.66
- Hi-tech park: financial assistance at the rate
of 50%of fixed capital investment in land, building
and infrastructure facilities upto a maximum of
US$ 542,312.93
- Export Park: financial assistance at the rate
of 25% of the fixed capital investment in land,
building and infrastructure facilities upto a
maximum of US$ 542,312.93
- Stamp Duty: the developer of the industrial
park will be eligible for exemption on payment
of stamp duty on purchase of land. However, the
industrial units in the park will be required
to pay stamp duty at the rate of 50% of duty.
- Scheme for Assistance to Critical Infrastructure
Projects
- Under this scheme, assistance will be considered
depending upon the requirement of state contribution
in the project and normally upto the rate of 50%
of the project cost, maximum of Rs. 5 crore per
project.
- The implementation committee will stipulate
conditions for the project.
- Scheme for Assistance for Technology Upgradation
- Financial assistance in the form of interest
subsidy@ 3% per annum will be provided on term
loan received from financial institutions/banks
towards purchase of capital equipments necessary
for technology upgradation. The period of assistance
will be five years subject to maximum of US$ 6,509.32
per year.
- The amount of subsidy will be given directly
to the financial institution/ bank. No penal interest
or other charges will be considered.
- The unit availing assistance under any other
scheme of the state government for the same purpose
will not be eligible under this scheme.
- Scheme for Assistance to Market Promotion and Development:
the eligible activities under this scheme are:
- Common Branding and Marketing fund.
- Participation in International Trade Fairs in
Gujarat Pavilion.
- Participation in exhibitions abroad.
- Assistance for sending product sample abroad.
- Participation in seminar abroad.
- Setting up of permanent exhibition cum conventional
center.
- Setting up trade centers at important industrial
clusters/locations.
- Scheme for Assistance to Cluster Development
- The quantum of assistance will be need based
depending on the type of the proposal and activities
covered by the association besides, technical
and managerial capability of the association,
level of maturity, administrative set up, past
track record, transparency in operations, etc.
- Normally, the financial assistance will range
between 25% of the project proposal in case of
training expenditure component, 25% to 50%of cost
component in other matters. However, the state
level committee will take decision depending upon
the activities covered in the project.
- Scheme for Assistance to Environment Protection
Measures: the eligible activities under this scheme
are:
- Waste minimization techniques
- Waste exchange networking centres
- Demonstration projects
- Environment management system
- Environment related studies
Incentives to the IT Sector
As per Draft IT policy 2006-2010, Government proposes
to provide following incentives to IT & ITES Industry:
- Mega IT projects: On case to case basis, a special
package of incentives may be offered for mega IT projects
with investment above USD 10.7 Million.
- High Tech Park: IT park will be provided financial
assistance at the rate of 50 percent of fixed capital
investment in land, buildings, and infrastructure
facilities up to of US$ 0.537 million.
- Exemption from Stamp Duty: the developer of IT park
will be eligible for exemption from payment of stamp
duty on purchase of land.
- Exemption from Electricity Duty: all new information
technology units have been exempted from electricity
duty fro 5 years.
- Exemption from Power Cuts: the IT and ITeS unit
will be considered eligible for exemption from power
cuts.
- Simplification of Labour Laws
|
