Gujarat Integrated Logistics & Logistics Park Policy 2021: Why This Policy Actually Matters

If you look around at how businesses work today, one thing becomes very clear—products are no longer the only thing companies compete on. What really makes a difference is how quickly those products reach customers. And honestly, this is where most companies struggle. Warehousing issues, delays at ports, poor road networks, no coordination between different modes of transport, the list goes on.

Gujarat, being a state with major ports and huge industrial zones, understood that if logistics remain outdated, industries will slow down too. That’s what led to the Gujarat Integrated Logistics and Logistics Park Policy 2021. It’s not a flashy announcement—it’s a practical, thoughtful push to build better logistics infrastructure that actually helps businesses.

This policy is active from August 2021 to August 2026, so anyone planning to get into logistics still has time to make use of it.

Why the Policy Came at the Right Time

For years, India has struggled with high logistics costs. Other developed nations spend roughly 8–9% of their GDP on logistics. In India, the figure is closer to 14%. That means companies end up spending more on moving goods than on producing them.

Gujarat didn’t want to stay stuck in that cycle. With ports like Mundra and Kandla already handling huge cargo volumes, it only made sense to improve the internal logistics network too—better warehouses, modern cold chains, organized truck terminals, and smoother connectivity between ports and inland areas.

This Gujarat Integrated Logistics and Logistics Park Policy 2021 is basically saying, “Let’s fix the bottlenecks once and for all.” 

Who All Can Apply?

One good thing about this policy is that it doesn’t restrict entry. The following can apply:

• Individual proprietors
• Partnership firms
• LLPs
• Private or public companies
• Trusts, NGOs
• Co-operative societies

So you don’t have to be a big corporate giant to get started. Even a medium-sized business with a solid plan can take advantage of the scheme.

What Kind of Projects Are Eligible?

The list is actually pretty broad, which is great because logistics isn’t one single thing—it’s a mix of many moving parts. The policy includes:

• Logistics parks
• Multimodal logistics parks
• Warehouses (big or specialized)
• Cold chain facilities
• Inland Container Depots
• Container Freight Stations
• Private freight terminals
• Air freight stations
• Silos and truck terminals
• Air cargo complexes

So whether you’re building a small cold storage unit or a full-scale logistics park, the policy has something for you.

Financial Support You Get Under the Policy

Here’s where things get interesting. Gujarat didn’t just create the policy for show—they backed it with solid financial support.

1. Capital Subsidy – 25% (up to ₹15 crore)

A quarter of your eligible project investment is reimbursed. That’s a massive help when you’re building infrastructure-heavy facilities.

2. Interest Subsidy – 7% for seven years

You can get up to ₹50 lakh per year back on interest paid. Over 7 years, that’s a big cushion.

3. 100% Stamp Duty Reimbursement

Once 40% of your construction is done, the stamp duty you paid on the land comes back to you.

4. No Electricity Duty for Five Years

A simple benefit, but it helps your operating budget a lot.

5. Additional Help

The policy doesn’t stop at infrastructure. It even supports:

• Patent expenses
• Quality certifications
• Skill development
• Technology purchase

This makes it easier for logistics companies to upgrade, innovate, and maintain good standards.

Important Rules You Must Follow

Every good scheme also comes with a set of rules. These are the key ones:

• If the land isn’t owned, a 10-year registered lease is compulsory.
• Facilities cannot be sold after developing them—only rented or leased.
• Land must be NA (non-agricultural) and without legal disputes.
• At least 85% of workers must be from Gujarat.
• Minimum seven years of operation is required after the project starts.
• Third-party quality checks are mandatory.
• All subsidies together cannot cross 60% of the project cost.

These rules ensure the projects are long-term and genuinely useful for the logistics ecosystem.

How the Application & Approval Process Works

The process is straightforward, though it has multiple steps:

1. Registration

You submit your basic application and documents. DIC visits your site, verifies everything, and then approves registration.

2. Sanction Stage

Here you provide:

• Land proof
• DPR
• Layout plan
• Term loan sanction

A committee reviews it, and then SLEC gives final approval.

3. Subsidy Disbursement

The capital subsidy doesn’t come all at once- it’s given in stages (25%, 50%, 75%, 100%). Other subsidies require separate claims. 

Conclusion

The Gujarat Integrated Logistics and Logistics Park Policy 2021 directly addresses real industry needs by focusing on future-ready infrastructure rather than just incentives. With wide eligibility and strong financial support, it creates solid opportunities for long-term logistics investments. 

As Gujarat grows as an industrial hub, SDS Fin Advisory LLP helps businesses navigate this policy and plan sustainable, low-risk logistics projects that support the state’s evolving supply chain ecosystem.

FAQs

1. What is the main purpose of this policy?

To improve Gujarat’s logistics infrastructure and reduce costs for businesses.

2. Can small or medium businesses apply?

Yes. The scheme is open to proprietors, LLPs, companies, trusts, and co-ops.

3. Are cold chains and warehouses included?

Yes, both are eligible.

4. What is the maximum capital subsidy?

Up to ₹15 crore.

5. How long do facilities need to operate?

A minimum of seven years after starting.

6. Can the facility be sold later?

No, only leased or rented.

7. What is the last date to apply?

The scheme runs until 1 August 2026.