Author: SDS Fin Advisory

Assistance for Research and Development Activities Gujarat Industrial Policy 2020

Posted on by SDS Fin Advisory

Gujarat has introduced several new assistance for the Research and development activities in the industrial units. This scheme will assist several Researcher units to prepare a proper platform in terms of development. Everything that comes under “Atma Nirbhar Bharat” will boost many companies and institutions using their research activities in Gujarat. They will get a direct benefit from the Gujarat Government under the latest Industrial Policy 2020. The new industrial policy is a game changer for several research units to enhance the development process in the industries.

This assistance will establish Gujarat as the industrial unit in the whole country and enhance the research activities. A committee set to consider several research and development teams’ applications and provide the necessary tools to create engaging things to invent new things. This assistance will come into force from 07.08.2020, which will remain active for up to five years.

Now let’s discuss different assistance schemes under this policy to strengthen the research and development institutions and units.

Assistance to Establish Research and Development Centers.

Multiple institutions that have the recognition of CSIR or DSIR bodies to be development centers. The institutions have the registration as a proprietorship or partnership firm. These institutions have to maintain their research activities on a large scale.

Activities that are eligible to be part of the assistance

  • R&D sectors with the main aim of performing scientific research in industrial units and other developments.
  • If a product development sector is there, establishing will have to perform the objectives to improve design and process.

These institutions will get the assistance of 30% in the investment of machinery, hardware, and other equipment that will be part of development. The assistance will be of a maximum of 5 crores, where the activities have to be done during the scheme.

Assistance to the Contract-Based Research Works.

If the eligible institutions will propose any research that can prepare some research in the business’s industrial units. Any activity that comes under SLEC will come under this scheme, and the activities will get the direct benefit from the Government of India.

Institutions that are eligible in the scheme.

  • Any institution that is recognized by CSIR/DSIR and performing resear4ch and development tasks.
  • The Government approves those institutions of Gujrat or the Government of India.
  • Institutions that are approved by AICTE in the field of research and development and autonomous colleges will also come under this scheme.
  • SLEC institutions can also be the part of these schemes to enhance the research activities.

Assistance to the Industrial Units to Establish the R&D Units in the State.

CSIR/DSIR approved institutions will be eligible to be part of the assistance. R&D institutions that are established or set up will get complete assistance from the Government of Gujarat. After submitting the proposal, the SLEC will scrutinize the applications to find the eligible institutions recommended by the Government.

R&D laboratories will be eligible to become part of this assistance working in the enhancement of industrial research.

The Government will give 60% project cost, and these laboratories will benefit from the assistance.

Conditions for the Industrial Research Assistance.

  • Any industry that is applying for the assistance should be registered under the applicable act.
  • These institutions should get the approval of CSIR or DSIR to be part of this scheme.
  • The applications should be submitted to the Industrial Commissionerate by attesting to DPR with the application and approval letter from the DSIR/CSIR.

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Capital Subsidy to Large Industries and Thrust Sector

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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.

Assistance for startups Innovation

Posted on by SDS Fin Advisory

Gujarat, the most industrial state of India, is promoting several business sectors. Startups and innovations are the roots of growth in the economic aspect of the country, and the government is taking care of these things for startups.

The latest industrial policy of the Gujarat government is enhancing the confidence of new startups to generate more resources in the industries and take part in the latest innovative industrial ideas. The Gujarat state is top-ranked in the “best performance” in the All India state startup ideas. Just for strengthening the startups., the government is giving several incentives to startups with some rewards.

There is assistance to the MSMEs from the government. There are different definitions for the eligibility of the startups to get the incentives.

  1. The startup is something that can be an individual or a group of individuals that is coming with some innovative ideas to take part in the country’s development.
  2. The startup should have registered with LLP with the “limited liability partnership”.
  3. The partnership firm should register under section 59 of the partnership act 1932.
  4. The focus of the entity should be on the innovations and the improvement of the products and the services.

Eligibility of startups :
The company or a person that has an innovative idea will be eligible for. The idea should be for the sake of development in the industrial sectors.

The innovation should comprise development in the agricultural sector, engineering, science, and other genres that can help others. The innovations should comprise reconstruction in society in any aspect.

The startups that are already getting incentives in any other startup programs will not get assistance under the assistance scheme. There will be a mentor that will clarify the startups to get the assistance, and this mentor should register in the nodal institution.

Eligibility of Nodal Institution :
The university should be approved or affiliated under any recognized institution will be eligible to be a nodal institution. Also, the institution should register itself under the companies act 2013 of section 8 as and a non-profit-making company.

The institution should have a separate space and a group of employees that can manage the whole assistance procedure.

Scheme to assist the startups :
When any startup enrolls in the acceleration program that is operable nationally and internationally, they will get particular assistance up to 3 lakh.

Also, the startups will get skill development assistance from the government, and the nodal institutions will work to enhance the skills of these startup ideas. Also, there is financial assistance to the startups’ worth rupees 1 lakh.

Procedure to get approval for the assistance :
The nodal institution can send their proposal to the website only if they are eligible. After the registration, they have to apply to the IC office to get the approval for the Nodal institution. The SLEC will inspect the institution as per the requirements, and then it will approve the institution as a nodal institution.

After the approval of SLEC, the nodal institution will get a sanction letter along with the assistance kit. The SLEC will recognize the institution as a nodal institution.

The eligible startups can register their ideas and firm to the online portal. Then they can register to the nodal institution with requisite in the prescribed format. There the nodal institution will test the startups, then will pass the registration to the commissioner officer.

Their registration will get the inspection of all the documents in the file, and then it will go to SLEC to get the approval.

Authorities that will implement the scheme to the startups and the inspection authority will clarify, interpret, and check the disputes, if they’re among the startup ideas.

Latest announcement by the finance minister to foster business in India

Posted on by SDS Fin Advisory

Recently when everyone was in the joy of Diwali week, Finance minister Nirmala Sitharaman announced multiple schemes for the businesses to take part in their happiness. Now businesses will get multiple benefits from the government of India. The finance minister announced a package of 2.65 lakh crores to stimulate Atma Nirbhar Bharat 3.0, where the main targets are MSMEs, housing, stretched, and farm sectors. Amid 10 PLI schemes, 5 more industries are included in the package that will consist of 12.7 lakh crores. It will attract the investors to put their money in the production of goods in India where the Indian market can increase the export of goods. Also, the government has supported the private and public sector by sharing the maximum 24% PF for the employees. The government will directly support every employer in the share of PF, which will enhance manufacturing in India. Every decision is taken under Atmanirbhar Bharat 3.0 package to increase production in India. Let's discuss the departments where the schemes are going to apply.

HOUSING FINANCE:

The incentives for housing relief are in two forms that come under the Atma Nirbhar Bharat. One is an Income tax benefit, and the other is higher incentives for Pradhan Mantri Awas Yojna. The tax is reduced to 3 percent where owners directly enjoy the relaxation. The application of the tax reduction will be limited to the value of 2 crores. It will help the owners to solve the unsold inventory, and it will differentiate the circle value and agreement value. Under the PMAY, the housing sectors will get the incentives of 18000 crores, of which the Finance ministry already sanctions 8000 crores.

DIFFERENT JOB SECTORS :

The government announced to boost up the companies with the employee share of 1000 employees. The employees that are hired between October 1, 2020, and June 30, 2021, will get the 24 % PF in which the government will share a 12 % PF amount to include in their accounts. The job sectors will get a boost, and it will promote Atma Nirbhar Rozgar Yojana.


The government has decided to include the healthcare services in the stressed services, and all these sectors will get credit from the government. It will directly give benefits to the MSMEs and other healthcare sectors. The government has exceeded 3 lakh crores for these industries, which can create a good impact on the export of goods.

Atmanirbhar PLI schemes :

The government has decided to support the manufacturing industry by offering them multiple incentives for the manufacturing of goods in India. It will enhance the number of products in India where businesses will get a direct advantage in the manufacturing of multiple things.


The government has decided to infuse 6000 crores in NIIF as the equity, which will enhance other projects and attract investors to invest more in the Indian market. There are some expectations by the government that the infra project financing is going to touch the 1.10 lakh crore mark by 2025.


Also, 65000 crores are reserved for farmers for the fertilizers and other needs. The farmers can enjoy these services for every crop season, which will allow them to grow more without any problem.


There is the amount of 3000 crores for EXIM bank that can be used for the project promotion that will come under the line of credit by the IDEAS scheme. The government is providing direct benefits to the businesses, which will help the economy to reach the target by the end of 2025.

For construction and infrastructures, the government is reducing the security from 5-10% to 3%, which is crucial to enhance the working capital of construction. It will entertain the contractors and other services to unblock the previous capitals to promote the construction services in the country.


Multiple schemes will foster the economy of India, which can help the businesses to create more resources for the promotion of Atma Nirbhar Bharat. It will enhance export services and enhance the manufacturing sectors.