Large industrial enterprises have an important role in development of industrial ecosystem of an area. Besides generating revenue for the state government and creating local employment, large industries are also beneficial in bringing in high-end technologies. They also aid in generation of an ancillary industry around them thereby having a multiplier effect on employment, revenue and overall growth.

Gujarat has been successful in attracting large sector investments in the states, both domestic as well as from other countries. In line with the mission of Atmanirbhar Bharat, the state has identified 15 thrust sectors for industrial promotion. The sectors have been segregated in 2 categories:

1. Core sectors:

These are the sectors where Gujarat already holds a leadership position in the country. The policy will give a further boost to these sectors to empower global competitiveness of Gujarat’s industrial a ecosystem in these sectors. It is realized that Gujarat’s strong position can be capitalized to have a multiplier effect and thus achieve stronger growth.

1. Sunrise sectors:

These are the sectors that are upcoming/ niche sectors in India and around the globe. This policy provides specific incentives and provisions for creating an enabling ecosystem for their establishments in the state. The intention is to make the state more competitive and lucrative than other similar regions/ geographies.

In view of the above, a scheme is introduced for giving incentives to new investments in the state and generate employment opportunities. After careful consideration, Government is pleased to introduce a  to scheme to provide incentives to attract investments to the state in the manufacturing sector to create more employment opportunities, for balanced regional growth and inclusive development of the state.

• Resolution:

In view of the strategy under Gujarat Industrial Policy, the Government is pleased to introduce a ‘Scheme for Capital Subsidy to Large Industries and Thrust Sector’ which will come into force from the dt.07.08.2020

and will remain in operation for a period of five years. i.e. up to 06.08.2025.

1. Eligibility:
2. A new industrial unit, or an existing industrial unit that under takes expansion or diversification and which commences commercial production during the operative period of the scheme will be eligible to apply under the scheme.
3. An industrial undertaking that has availed any incentive for the same assets under any scheme of the state government, or any agency of the state government, shall not be eligible for incentive under this scheme.

1. Quantum of Incentive:
2. An eligible industrial undertaking will be eligible for Capital Subsidy according to the Classification of Talukas.
3. The rate of Capital Subsidy shall be as prescribed in the table below:

• The eligible capital subsidy will be given over a period of 10 years from the Date of Commercial Production (DOCP) in equal annual instalments subject to annual ceiling of INR 40 Crore.

1. If the total eligible capital subsidy could not be disbursed within period of 10 years due to upper ceiling of INR 40Cr. Per annum, for such unit the eligible period will be extended further up to 10 years. The annual ceiling will remain INR 40 Cr. Per annum during such extended period.
2. In case, if the total eligible capital subsidy is not disbursable within period of 20 years due to upper ceiling of INR 40 Cr. Per annum, the total entitlement of capital subsidy will be disbursed in equal 20 yearly instalments without any upper ceiling.
3. After completion of three Years from the last date of investment period as specified, the average production for previous three consecutive years should be atleast 50% of actual installed capacity. For the year when such average production is less than 50% of the installed capacity, the incentive amount for such year will be reduced 50% of the eligible incentive for that particular year.

• IF the average production consistently remains less than 50% of the installed capacity for three consecutive years, the incentive amount will be discontinued till the average production reaches 50% of installed capacity. For such period where the incentives are discontinued, the industrial undertaking will not be entitled to claim any arrear and/ or extension of incentive period.
• The SME enterprises are entitled to opt for this scheme subject to condition that will not be eligible for capital subsidy and interest subsidy under the incentive scheme of MSME under Gujarat Industrial Policy-2020.

1. Other Conditions:

The incentives granted under the scheme shall be subject to the following conditions.

1. An industrial undertaking shall be required to employ persons domiciled in Gujarat to the extent of at least 85% of its total number of employees in all categories. The employment of persons domiciled in Gujarat in managerial and supervisory 8capacity shall not be less than 60% of the number of person employed by the enterprise in managerial and supervisory capacity.
2. The industrial undertaking shall be required to submit a list of persons employed and such other information required for verification of having satisfied this condition before the sanction of incentives under the scheme.
3. The industrial undertaking shall have to submit particulars of local employment and the applicable certificate from GPCB to the Industries Commissioner.
4. The Industrial undertaking may avail incentives under any scheme of Central Government. However, the total incentives received from state and central government scheme should not exceed the approved project cost.
5. Any investment made by an existing industrial undertaking for renovation, modernisation, rehabilitation, or rationalisation will not be eligible for incentive under this resolution.
6. An industrial undertaking that has availed incentive under this scheme shall install and effectively operate and maintain pollution control measures as per the standards prescribed and approved by the competent authority in this regard.
7. An industrial undertaking that has availed incentive under this scheme shall be required to remain in production continuously till the expiry of the eligible period of incentive. However, if production is discontinued due to reasons beyond the control of the management, the sanctioning authority may condone the period for which production is discontinued after due verification of details and reasons of discontinuation of production and after satisfying itself to the same.
8. The industrial undertaking shall furnish to the Industries Commissioner/General Manager District Industries Centre information regarding production and employment for each financial year within 60days of the close of the financial year. It shall also furnish information on such other matters that the state government may require from time to time.
9. In case of any breach of one or more of these conditions, the incentives given under the scheme shall be liable to be recovered as an arrear of land revenue or in any other appropriate manner the government may deem fit.