We all know about the most industrialized state in India. That is Gujarat. The government of Gujarat always does some better things for entrepreneurs and businesses to enhance their motivation and also increase production. There are several steps that the government regularly takes to enhance production in the state.
There are several sectors in the industrial policy that get multiple benefits, and the same as those industries, the large industries, and thrust sectors will get an extra benefit for the businesses to increase the production.
The capital subsidy is decided by the MSME department that is a group of some government officials, which strengthens the MSME businesses and new entrepreneurs.
Large industries are the key role players in the industries of a definite area. The large-scale industries not only increase the revenue for the government, and they also use high-end technologies in the businesses. They generate ancillary industry near them to multiply the employment and increase the use of the latest technologies. Gujarat is the only state in India that can attract investors from every part of the world.
To strengthen the AtmaNirbhar Bharat, the Gujarat government has introduced 15 thrust sectors that will be segregated into two different sectors.
Now let’s discuss the 15 thrust sectors and their groups in which they are kept.
Let us understand the thrust sectors first. A thrust sector is the heaviest sector in the industrial groups. Several potential industries are there in the thrust sectors, and they require external support to empower the industries globally.
15 industries come under thrust sectors. The Gujarat government will provide some additional subsidies to these industries to empower the thrust sectors. Let us understand the several groups that come under the Thrust sectors.
- Electrical Machinery and equipment.
- Industrial Machinery and equipment.
- Auto and auto components.
- Technical Textiles.
- Agro and food processing.
- Pharmaceutical and Medical devices.
- Gems and Jewelry.
- Industrial 4.0 manufacturing.
- Electric Vehicles and their components.
- Waste management projects.
- Green Energy.
- Eco-friendly compostable material.
- 100% export-oriented units.
Eligibility for subsidies
- A new industry or an existing one will be eligible for the subsidy when there is an expansion in or diversity in the commercial production during the operative period of the scheme.
- Any industrial undertaking that is availing any offer from the state government not to be eligible for the subsidies. Also, the state or national agency cannot avail of the services.
The investment period for conjuring the industry
During the operative period of the scheme, the industry has to show the enhancement in the production.
The board will consider the investment period from the announcement of industrial policy, i.e. 07/08/2020. Also, there is an extension for these industries.
- MSME projects: 12 months from the date of commercial production.
- Cross capital investment up to 1000 crores: 18 months from the date of commercial production.
- Cross capital investment up to 5000 crores: 24 months from the date of commercial production.
- Cross capital investment up to 10000 crores: 30 months from the date of commercial production.
- Cross capital investment above 10000 crores: 36 months from the date of commercial production.
Industries will get the incentives based on their production rate, where they will get direct benefits from the government.
How to register your business?
The eligible industry can register for the GR within the date of commercial production. These businesses have to submit the letter in the format to the industrial commissioner.
The documents need to be attested with the application. The crucial documents are:
- Registration certificate of the industrial undertaking and also, the industrial entrepreneur memorandum, or says UdhyogAadhar registration certificate issued by the Government of India.
- Legal documents of the land where the business is established are crucial to attest with the application.
After the registration, the sanction committee will inspect the business, and then you will get the benefits of the industrial policy directly.
Quantum of Incentive :
An eligible industrial undertaking will be for capital subsidy according to the classification of Talukas as under:
|Taluka Category||General Sectors||Thrust Sectors|
|Category 1||10 % of eligible Fixed Capital Investment (excluding Land)||12 % of eligible Fixed Capital Investment (excluding Land)|
|Category 2||8 % of eligible Fixed Capital Investment (excluding Land)||10 % of eligible Fixed Capital Investment (excluding Land)|
|Category 3||4 % of eligible Fixed Capital Investment (excluding Land)||6 % of eligible Fixed Capital Investment (excluding Land)|
The eligible subsidy will be given over a period of 10 years from the Date Of Commence of Production (DOCP) in equal annual instalment subject to an annual ceiling of Rs. 40 Cr.