Infrastructure - Financial Assistance to Industrial Parks

Introduction

Gujarat Industrial Policy - 2003 has identified infrastructure development as a priority on the state agenda. Setting up of Industrial Park is as important infrastructure for industries. The State Government is encouraging participation of private sector for setting up small estates and specialized Industrial Parks. A separate scheme was introduced under Gujarat Industrial Policy 2000 and has found favour. Subsequently, the State Government has also come out with a scheme to encourage private sector developers to set up Special Economic Zones and Industrial Parks. The new industrial policy emphasises at continuing the financial assistance for hi-tech parks, investment parks, export parks etc. Government of Gujarat has therefore, introduced a modified scheme in this regard.

Scheme

The scheme will be known as Financial Assistance to Industrial Parks. The scheme will come into operation from the issue of this GR and will remain in force for 5 years. The scheme is in operation for five years i.e. up to 9 th June 2009

Definitions

• Industrial Park is an estate which is developed primarily for establishment of industrial units to manufacture any product or service units and having basic infrastructure facilities like developed plot, internal roads, water distribution facilities, sewage, power distribution, communication facilities and such other facilities/services as may be required.
  The Industrial Park must have provision for the location of minimum 30 industrial/service units.

• Mini Industrial Park is a Park having facilities as defined above. However, it must locate minimum 11 industrial units/service units.

• Hi-tech Park is an industrial park as defined above locating industrial units for specific activities such as Bio-technology, Pharmaceuticals & clinical testing and Information Technology

• Export Park is an industrial park as defined above and developed specifically for promoting export oriented units as approved by Government of India under EOU scheme. In addition, the park must have specific facilities towards export promotion and export marketing.

• Exporting Units The exporting unit will have the same definition as defined by Government of India under prevailing export policy.

• Eligible Fixed Capital Investment

• Land The land required for industrial park and payment made towards land, including registration charges.

• New Building Building constructed in the industrial park for providing specific infrastructure facilities/service facilities for the units. The actual expenditure incurred and paid for construction of building as per the norms adopted by the State Level Approval Committee will only be considered for eligibility.

• Other Construction The other construction will include facilities like boundary wall and other specific buildings as may be required for the project and approved by the State Level Approval Committee. The construction norms will be decided by the Committee.

• Infrastructure Facilities Infrastructure facilities will include cost for development of infrastructure like internal roads, power lines, communication facilities, water distribution line and water agumentation facilities, sewage and drainage lines, effluent treatment and disposal facilities and other facilities as may be required in the Industrial Park. The expenditure incurred for the infrastructure development only will be considered. The construction norms will be decided by the Committee.

• Ineligible Expenses Expenditure incurred towards goodwill fees, commissioning fees, royalty, pre-operative expenses, interest capitalised, transportation equipments/vehicles, technical fees/consultant fees, working capital and other expenditures as decided by the State Level Approval Committee.

Benefits

Other Benefits

The Developer of the industrial park will be eligible for exemption on payment of stamp duty on purchase of land. However, the industrial units in the park will be required to pay stamp duty at the rate of 50% of duty.

Other Conditions

• The industrial parks under the scheme are to be promoted by private sector/institution.

• Priority will be accorded to industrial parks which are being set up in the land allotted by GIDC or in closed textile mills /closed industrial units.

• The industrial park is required to get registration under industrial park scheme of Government of India.

• The industrial park must have minimum 50% investment in infrastructure facilities excluding construction of sheds.

• The minimum percentage of the area to be allocated for industrial units shall not be less than 50% of the total allocable area. Rest may be for common facilities like power, telecom, road, green belt etc

• Industrial Park is required to have minimum infrastructure facilities required for the park, namely internal roads, water distribution network, drainage treatment, effluent treatment, power distribution network, communication network and other facilities.

• The incentive is for development of Industrial Park. One single unit in the park will not be eligible for incentive under the scheme.

• The Mini Industrial Park which avails assistance under IID scheme of Government of India will be given priority under the scheme.

• The developer/institution will be required to provide infrastructure at concessional rate to the extent of incentive received under the scheme.

• The promoter institution of the Industrial Park will have to manage the operation of the Park for minimum five years after completion. Otherwise the incentive granted will be recovered under the Land Revenue Act.

State Level Approval Committee

• A Committee consisting of the following members is constituted for sanction of assistance with respect to various proposals under the scheme.

The disbursement of subsidy will be after physical verification of the investment made in Industrial Park under the project proposal.

The application under the scheme will be received by Industries Commissionerate and placed before the committee for decision.

Any dispute/interpretation or contention under the scheme will be referred to the State Level Approval Committee and decision of which will be final and binding on the applicant.

Others

The expenditure on this account will be met from the sanctioned grant of the respective financial year under the following Budget - Head:

Demand No.49
Major Head; 2852-industries
Minor Head (8000) other expenditure
Sub Head (22)
IND (3) -Development of infrastructure facilities
Grant -in-aid (C) to others

Application flow

• Proposal received from units

• Scrutiny

• Preparation of agenda note for sanction of subsidy

• Sanction of subsidy by state level committee

• Verification of assets

• Payment Order

Necessary Documents (Mandatory)

1. Copy of land purchase deed

2. N.A. permission from concerned authority

3. Site plan of industrial park

4. Loan sanction letter of financial institution/bank

5. Copy of project report

6. Memorandum and Articles of Association

G.R. No. APN/102003/1161 (7)/I dt 10-6-2004

Infrastructure - Critical Infrastructure Projects

The State Government has introduced several schemes towards infrastructure development including setting up of Industrial Parks, upgradation of infrastructure facilities in industrial estates besides development of infrastructure facility for industry. The state government also intends to encourage Industries Associations to take up specific infrastructure development projects in their respective industrial areas which are need based and critical but not covered under plan scheme. A separate scheme in this regard was introduced as a part of Gujarat Industrial Policy 2000. It has been decided to introduce a modified scheme for the purpose.

To assist the Industries Association/Chamber of Commerce & Industries/Federations for development of inadequate infrastructure.

1. Approach road from industrial estate/area to airport, port or highway
2. Overbridge on road/railway.
3. Upgradation of existing roads/widening of road.
4. Construction of by pass road
5. Setting up of earth station/communication facilities
6. Water distribution network and related facilities
7. Gas/Electricity/Energy distribution network and related facilities
8. Any other infrastructure facility required in the area specific to industry.
9. Setting up of ware-housing facilities and related facilities.
10. Facilitation Center, Product Development Centre, Training Centre, Testing Centre, R & D Institution and /or any Common Facility Centre.

Government of Gujarat from time to time has taken several pro-active measures to ensure that the industries adhere to the stipulated norms pertaining to environment. Gujarat can boast of having the highest number of common effluent treatment plants for treatment of effluents generated in different estates. The state also scores over other states in the matter of Technically Safe Disposal Facility (TSDFs) for disposal of solid and hazardous wastes and Common Conveyance facilities for safe disposal of treated effluents. These initiatives could be attributed to the proactive role of the state Government as well as the Gujarat Pollution Control Board, as far as environmental management and pollution control leading to sustainable development is concerned.

Eligible unit will be provided financial assistance at the rate of 25 % of eligible project cost

Under the scheme G.I.D.C or any Industries Association/industrial house or institution registered under the Societies Act, Partnership Act or the Companies Act will be eligible.

• Proposal received from Industries Associations/S.P.V

• Registration

• Subsidy Claim

• Scrutiny

• Prepares agenda note for sanction of subsidy

• Sanction of subsidy by state level committee

• Verification of assets by G.M. D.I.C

• Scrutiny of Verification Report

• Prepares agenda note for disbursement of subsidy

• Approval of S.L.C for disbursement

• Issue of Payment Order

1. Copy of land purchase deed

2. Project Report /Appraisal Report

3. Memorandum and Articles of Association

4. N.O.C/ Authorization from Gujarat Pollution Control Board

5. Status of project implementation

G.R. No. CET-102000-4216-G dated 22-07-2004

The Government has introduced a scheme to provide assistance towards the cost of infrastructure like land cost (including legal and transfer fee), power transmission line, construction of approach road (linked with state highway, national highway, MDR/ODR etc) by medium and large industrial projects coming up in rural areas.

1. Proposal received from Units
2. Registration
3. Verification of assets by G.M. D.I.C
4. Scrutiny of Verification Report
5. Sanction of subsidy by state level committee
6. Payment Order

1. Copy of land purchase

2. Copy of IEM/LOP/LOI

3. Project Report

4. Memorandum and Articles of Association

5. Local employment detail

6. Status of project implementation

7. Details of expenditure towards infrastructure like land, transmission line and approach road.

Interest Subsidy

Interest Subsidy - Credit Linked Capital Subsidy @ 20 % under TUFS (CLCS @ 20 % - TUFS)

Introduction
 

The scheme is introduced to make small and medium scale units more competitive and generate more employment opportunities.

Benefits
 

• The Scheme is applicable to power looms in SSI Sector only.

• 20% Capital Subsidy will be available on investment in TUFS compatible specified machinery, subject to a ceiling of Rs. 12 lakhs on subsidy amount.

• This Scheme will be in operation from 06-11-2003 to 31-03-2007.

• The new imported looms as well as second hand imported shuttle less looms as per TUFS norms will also be eligible.

Eligible Criteria
 

The eligible machineries under the scheme include indigenously manufactured semi-automatic looms, automatic looms, shuttle less looms, with or without specified loom accessories and specified wiving preparatory machinery.

Guideline

Clusters - Scheme for Assistance to Cluster Development

The State Government intends to encourage Research & Development Institutions/ University/ Industries Associations for creating necessary common infrastructure facilities in different activities like environmental protection measures, productivity improvement, quality up gradation, promotional activities like trade & export promotion, participation in trade fairs, contract research work for member units, creating/ up gradation of common infrastructure facilities.

The quantum of assistance will be need based depending on the type of the proposal and activities covered by the Association, besides technical and managerial capability of the Association, level of maturity, administrative set up, past track record, transparency in operations etc.

Normally the financial assistance will range between 25% of the project proposal in case of training expenditure component and 25% to 50% of cost in other components. The State Level Committee will take the final decision depending on the activities covered in the project.

The Government aims to empower the clusters by providing need based financial assistance for taking up activities like technology up gradation among member units with the assistance from R&D Institution/University, product design, quality improvement, common branding and marketing facilities, development of common facilities such as raw material or product warehouse, testing laboratory, R&D institution, tool room facilities, skill development facilities/programmes for workers and supervisors, capacity building and productivity improvement through different schemes. Besides, assistance will be provided for up gradation/creation of common infrastructure facilities.

The Industries Association in the cluster will be encouraged.

1. Proposal submitted by R&D institution/Industries Association/Industrial units.
2. Preliminary Scrutiny.
3. Modified/Revised proposal.
4. Presentation by the proposer.
5. Inclusion of proposed suggestion in the proposal by the proposer.
6. Consideration of the proposal by the R&D Committee.
7. Sanction and Release of Grant.
8. Submission of detailed action plan by the proposer.
9. Implementation of the project. 
10. Monitoring and review by Monitoring Committee.

Project proposal should include details of proposed activities, proposer's profile and details of the sources of funds and assistance required for specific purposes and the impact of the project on industrial development and technology up gradation.

Gujarat Industrial Policy-2003 recognizes the need for industries to keep pace with rapid technological advances. The State Government therefore intends to encourage research & development institutions to undertake research work, disseminate proven technology among industrial units, adopt clusters and help them in technology upgrdation. State Government also intends to encourage R&D institutions to upgrade their facilities, take up contract research projects and get affiliation with international agencies/institutions for gaining international acceptability. State Government also intends to support creation of centre of excellence in areas of engineering, chemicals, textile garments, pharmaceuticals, plastics, agriculture etc.

The application for R&D proposals will be received and processed by the Industries Commissionerate (No specific application format is required). Detailed procedure for processing of application and institutionalizing of State Awards for Excellence is to be worked out by Industries Commissioner.

Scrutiny of application – details required to be asked for – presentation if necessary – site visit if necessary – agenda preparation – To be put up in State Level Approval Committee under G.R. - if sanctioned, sanction order and office order to be issued for disbursement of grant.

• Recognition of DSIR, Government of India if R&D institute is a private one
• Last 3 to 5 years performance if the R&D institution is an old one alongwith details of source of income and turnover.
• Justification for the demand of grant in terms of benefits to state and to industries of Gujarat, particularly small and medium industries.

Quality Certification - Financial Assistance to SMEs for Quality Certification

Introduction

The scheme is introduced for quality improvement in industrial units. Financial assistance is provided to the units holding quality certification like BSI ISO 9000 series, ISO 14000 series and ISO 18000 series and quality mark such as WHO, GMP, CE, HACCP and others as recognized by Government.

Benefits

50% of the eligible expenditure, subject to maximum limit of Rs. 2 lakhs.

Eligible Criteria

1. SSI units registered with DIC and medium scale / large scale units registered under applicable provisions are eligible.

2. The units should have acquired quality marks as indicated above.

Application Process Flow

Application(form title) : An application form for financial assistance for quality certification.
Scrutiny(if required) : Scrutiny is carried out at DIC level.
Inspection(if required) : Inspection is carried out at DIC level.

Necessary Documents(Mandatory)

• Application form

• SSI/SIA Registration

• Quality mark certificate

• Expenditure statement for quality marks

• Project Report

• Certification of payment made to the recognized institutions of quality mark

• Partnership Deed/Memorandum and Articles of Association

• CA certificate for fixed assets and expenditure towards quality certification mark

• Agreement made with quality certification agency.

G.R (No. & Date only) No. APN/102003/1161/(1)I dated 10-6-04

Rehabilation of Sick - Scheme for Relief to the Sick Industrial Company registered with the BIFR & GBIFR

Benefits

•  50% Deferment Scheme

Sick units makes payment of the 50% amount of taxes within 6 months down payment 10% - remission of the entire amount of interest, penal interest/within 18 months – down payment 15% - Remission in the interest beyond 9%/within 30 months – down payment 20% - Remission in the interest beyond 12%.

•  One Time Settlements of Financial Institution Dues.

Sick unit makes entire payments of all the outstanding dues within 6 months down payment 10% - Remission of the entire amounts of interest, penal interests and penalty/within 18 months – down payment 15% - Remission in the interest beyond 9%/within 30 months – down payment 20% - Remission in the interest beyond 12%.

Eligible Criteria:

•  Sick Industrial Companies, which have been declared sick by the BIFR.

•  Small Scale & Non- BOFR sick viable Industries, which have been declared sick by the GBIFR.

Name of Scheme: Incentive Scheme 2001 for Economic Development of Kachchh District

 Sales Tax Exemption

Introduction
 

The economic activity in Kachchh came to a standstill after the devastating  earthquake on 26th January 2001. With the objective of creating new employment opportunities through new industries and to make live the industrial and economic environment of the region, the Government of Gujarat has declared the Sales Tax Incentive Scheme - 2001

Benefits

Sales Tax Incentive Scheme
 

Sales Tax Exemption

Sales Tax Deferment

Composite Scheme (for units having investment exceeding Rs. 100 crore)

Eligible Criteria
 

This scheme shall come into force from 31.7.2001 and shall remain in force till 31.10.2005

1. New SSI units & new medium & large scale units are eligible.

2. Expansion & diversification or modernization projects of the existing units will not be eligible under this scheme.

3. New unit means a separate licence or registration shall have to be obtained or necessary amendments should have been carried out in the existing licence or registration.

4. Separate identifiable investment shall have to be made.

5. Separate building & books of accounts should have been maintained.

6. Unit has to commence commercial production before 31.12.2005

7. Those units who have not commenced commercial production before 31.12.05 and taken effective steps before 31.12.05 are eligible as pipeline case. Pipeline units have to commence commercial production before 31.12.2007.

Process Flow
 

Application(form title) : First, the unit shall have to apply for sales tax incentive registration in I.C. Office or in DIC, as the case may be. After going into commercial production the unit will have to apply for sales tax incentive.

Scrutiny(if required) : Scrutiny is carried out at the level of I.C. Office or the respective DIC, as the case may be.

Inspection(if required) : Inspection is carried out by the joint team of I.C. Office or respective DIC, as the case may be.

DLC/SLC : On the basis of verification report of the assets, the unit's case is put up before State Level Committee or District Level Committee, as the case may be, for necessary decision.

Necessary Documents(Mandatory) for Sales Tax Incentive Registration
 

1. Application Form

2. Land Purchase Deed

3. NA Permission for industrial purpose

4. SIA Registration

5. NOC from GPCB

6. Project Report

7. Affidavit in prescribed format

8. Partnership Deed/Memorandum of Association

For Sales Tax Incentive
 

1. Application in prescribed format

2. SIA Registration

3. Sales Tax Incentive Registration

4. Land purchase deed with index

5. N.A. Permission for industrial purpose

6. Approved building plan

7. Building construction permission

8. Air & Water Consent Order from GPCB

9. C.A. certificate for fixed assets

10. Civil Engineer certificate for building construction

11. Local employment affidavit

12. Appraisal report from GITCO/financial institutions.

13. Expenditure statement for land, building, Plant & Machinery, electrification & other fixed assets.

14. GST/CST No.
    
    G.R. (1) INC/10200/903/I dated 9.11.2001
           (2) INC/10200/903/I dated 12.11.2001
           (3) INC/10200/903/I dated 1.5.2004
           (4) INC/10200/903/I dated 13.9.2004
           (5) INC/10200/903/I dated 7.1.2005

Excise Duty Exemption - Kachchh Package

Government of India, in the Ministry of Finance, vide Notification No. 39/2001-Central Excise dated 31st July 2001 has announced a five year excise holiday to the new industrial units set up in the district of Kachchh.

Benefits
 

1. New units established after the issue of the notification dated 31.7.2001 are eligible to get exemption from Central Excise. Initially, the unit has to pay the excise duty and, thereafter, submit a statement of the duty paid less the credit availed under CENVAT Credit Rules 2001 to the concerned jurisdictional excise authority to claim the refund. After due verification of the claim, the amount will be refunded.

2. In case of units having value of investment in plant and machinery less than Rs. 20 crore, the quantum of exemptions available up to a maximum of twice the value of such investment, of excisable goods every year. In all other cases, no such monetary ceiling is applicable.

3. The facility of exemption is extended for a period of five years from the date of commencement of commercial production.

Eligible Criteria
 

1. Only new units established after the date of notification, i.e. 31.7.2001, are eligible.

2. Those units who have started commercial production before 31.12.05 are eligible under this scheme.

3. Under the scheme, change in the name or the nature of ownership or location of an existing unit within the district or from outside is not entitled to be treated as a new unit.

Application Flow
 

The applications are processed by the Central Excise Department. Hence not applicable.

Necessary Documents(Mandatory)
 

Applications are being processed by Central Excise Department.

1. Application form in prescribed format

2. Income Tax PAN Number

3. Partnership Deed/ Memorandum of Association

4. Name and Address of Proprietor/ Partners/ Directors

5. Ground Plan of the Premises.

Notification No. 39/2001 dated 31.7.2001

                          9/2004  dated 21.1.2004