Month: May 2021

Becoming an industrial state, Gujarat is becoming a hub for investors to invest more capital. It is giving a good return to several investors, and after the new industrial policy 2020, several schemes are attracting other investors to enhance the industrialization in Gujarat.

New businesses and startups are getting multiple benefits to enhance their business due to the assistance rapidly, and the Gujarat government provides them. Gujarat is a strong platform for businesses to accelerate growth in the industry and prepare the best outcomes in minimum time.

Gujarat Industrial Policy 2020 aims to promote the businesses and develop a better infrastructure to reshape the businesses. The industrial policy has created adequate provisions to enhance the business’s infrastructure model and other facilities to develop industrial parks in the state. These industrial parks can enhance the knowledge of business for the new ones, and give them the confidence to build a business using available resources.

The scheme for assistance to industrial parks is managed by a task force that came into action in 2015. They understand the business’s competitiveness and provide necessary pieces of information to enhance the business’s infrastructure. The Gujarat government is boosting the participation of private firms to take action for the industrial parks. With motivation and confidence, the government is assisting businesses by incentivizing the businesses.

The name of this scheme is “Financial Assistance to the Industrial Parks.”

Eligibility of the institution to develop Industrial Parks.

If any institution or enterprise is registered under the Companies Act, Partnership Act, Trust Act, Societies Act, or other Acts under the development of industrial parks will come under the eligibility criteria of preparing the industrial parks.

Definition of Industrial Parks

An industrial park will consider being an industrial park with a minimum area of 20 hectares, allowing 10 industrial units to get established. The manufacturing unit of these industries must be separated by additional 2 units of 5 hectares, which can be used for the manufacturing operations.

All the areas must meet all the basic requirements like developed plots, road construction, water facilities, sewage, complete management of power, communication, and residing area. These requirements are crucial for every industrial park to get assistance and develop an industrial park for industries.

Assistance to these Industrial Parks

• The eligible institution for the assistance will get 25% of the eligible expenditure, 30 crore rupees are maximum. The assistance is not including the land cost to get the amount.
• If the industrial park is going to establish in Vanbandhu Taluka, then the assistance of 50% of the total expenditure will be there. The maximum amount to get assistance will be 30 crore rupees.
• Additionally, in the hostel/residence area for workers, the institution will get 25% assistance or 20 crores per the development’s eligibility and rate.
• After the park’s completion, the remaining 15% of the reimbursement will get sanctioned for the developers. The remaining 85% of the assistance will be provided while the development of the industrial park.
• The eligible institution will get 100% reimbursement of stamp duty paid on purchase of land.

Conclusion

The Gujarat Industrial Policy 2020 is assisting several new developers, and businesses to enhance their business properly. It is crucial to understand the policy properly, which will help the institution get the reimbursements and proper assistance to enhance its industrial image.

There will be a committee, which will check all the documents to create an industrial park. This committee is a government body that follows the assistance’s complete procedure and allows the institute to participate in the scheme. This scheme is crucial for the businesses because of the total assistance from the government.

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Product Parameters
1. Objective	1. Providing financial support to all MSMEs which are manufacturing products or providing services which are directly related to fighting corona virus, such as Pulse Oximeters, Permitted drugs (Remdesivir, Fabiflu, Dexamethasone, Azithromycin, Zincovit, Limcee, Ivermectin, Paracip, Azax, Betadine, etc), Ventilators, PPEs, inhalation Masks, IV Fluid – DNS / Dextrose, IV Sets, IV Cannula, ICU Beds, Cardiac monitors, Syringe pumps, Portable X ray machines, Endotracheal tube, Suction tube, etc. 2. Providing financial support to all MSMEs which are manufacturing Oxygen cylinders / Oxy generators / Oxygen concentrators / Liquid Oxygen for medical use or providing services (viz. transportation, storage, refilling, etc.) which are directly related to supply of such items to the customers.
2. Purpose of loan	To acquire equipment/P&M/other assets including purchase of material
3. Quantum of Loan	Maximum `200 lakh
4.  Security/documentation	I. Existing SIDBI customers:
	For Term Loans A.    Charge on the assets acquired / to be acquired under the scheme. B.    If minimum ACR is not achieved, CGTMSE cover for eligible customers may be taken or any other security to ensure ACR. For WCTL C.    Amount equivalent to 25% of our WCTL, kept as cash collateral. SIDBI FD or other forms of cash collateral such as surrender value of valid LIC policies etc. may be accepted.
	II. New to SIDBI customers:
	For Term Loans
	A.    Exclusive first charge by way of hypothecation on assets acquired out of our assistance. B.    CGTMSE cover or any other security as decided by the BO/BCC. For WCTL C.    Exclusive/first/first pari-passu charge on current assets financed (as may be feasible) Obtain NOC from other WC banker for creation of charge on current assets shall be mandatory. In case of non-availability of NOC, charge on alternate assets may be taken depending upon  availability  of unencumbered / other assets to meet ACR requirements. D.    Amount equivalent to 25% of our WCTL, kept as cash collateral. SIDBI FD or other forms of cash collateral such as surrender value of valid LIC policies etc. may be accepted.
5. Repayment	TL – Generally, repayment period shall be 03 years, including maximum moratorium period of 01 year. Repayment tenure may be extended upto 5 years on case to case basis based on merit of the case.   WCTL – Repayable in 12-18 months including suitable moratorium.
6. Rate of Interest	Repayment period upto 3 years 4.50% p.a. to 5.50% p.a. Repayment period more than 3 years 5.00% p.a. to 6.00% p.a. Wherever CGMTSE cover is stipulated, CGTMSE charges shall be borne by SIDBI.