The Gujarat government on Friday announced the New Industrial Policy for the state. Here are the highlights of the policy…
Special incentives to companies who plan to relocate their business from other countries to Gujarat due to COVID-19 pandemic
Industries can get government land for projects for up to 50 years. This can be further extended as per existing policies.
Industries can get government land for long-term projects at 6% market rate. They will also be able to mortgage the same.
Capital subsidy and tax incentives to units that wish to relocate due to COVID-19.
The policy de-links incentives from SGST, with up to 12% of fixed capital investment, which will be given to large industries for setting up manufacturing operations in Gujarat. This incentive will be in the form of capital subsidy.
Besides, industries will continue to get an exemption from electricity duty for five years.
The state will provide Rs 5 crore for setting up research and development (R&D) or product development centres.
Seed capital for start-ups increased from Rs 10 lakh to Rs 30 lakh.
Special focus on MSMEs under Gujarat Industrial Policy
The policy allows MSMEs to source foreign technologies with government financial support. This support will be limited to 65% of the total cost of technology acquisition with a ceiling of Rs50 lakh.
Capital subsidy of up to 25% of the eligible loan of up to Rs35 lakh for MSMEs
It offers higher tariff to MSMEs for solar power generated through rooftop solar systems. They will be offered Rs2.25 per unit against Rs 1.75 for the power thus generated.
Industrial subsidy of up to 7% for up to ₹35 lakh per annum for MSMEs in the service sector. This subsidy will be for seven years.