Gujarat Launches Scheme To Attract INR 12.5 Trillion Investments

In line with Prime Minister Narendra Modi’s ‘Aatmanirbhar Bharat’ initiative, Gujarat Chief Minister Bhupendra Patel has laucned ‘Aatmanirbhar Gujarat Schemes for Assitance to Industries’ to attract investment of INR 12.50 trillion and employment generation for around 15 lakh people in the next five years.

The Scheme is aimed at encouraging budding entrepreneurs to fulfil their entrepreneurship ambitions not only by de-risking their investments through incentives but also by encouraging youth to innovate and become job creators, said Patel.

The schemes under Aatmanirbhar Gujarat will be instrumental in providing special assistance needed by industries to enable them to become part of the global supply chains, he said adding that the idea is to encourage industries to transition towards green manufacturing practices and adopt decarbonisation initiatives to remain globally competitive. As per the schemes, MSMEs would get Net SGST reimbursement up to 75 per cent of fixed capital investment over 10 years and capital subsidy up to INR 35 lakh for micro industries.

Besides, there is a provision for interest subsidy to MSMEs up to INR 35 lakh per annum for up to 7 years and electricity duty exemption for five years. Investment under INR 1 crore would be considered a micro-unit and investment between INR 1 crore and INR 10 crore would be treated as a small-scale unit. In the case of a INR 10 to INR 50 crore investment, the unit would be treated as medium scale. Similarly, under Aatmanirbhar Gujarat large industries would get interest subsidy up to 12 per cent and Net SGST reimbursement up to 75 per cent of fixed capital investment over 10 years.

Large industries too will get exemption on electricity duty for five years. Manufacturing units having a fixed capital investment of above INR 50 crore in plant and machinery would be eligible as large industries.

Mega industries too will get a boost under the new initiative of the Gujarat government as there is the provision of Net SGST reimbursement to mega industries up to 18 per cent of fixed capital investment over 20 years and 100 per cent of input SGST paid on capital goods shall be reimbursed over 20 years. Mega industries under these schemes would avail of 100 per cent reimbursement of stamp duty and registration charges paid to the Government of Gujarat for the purchase and/or lease of land meant for the project. Investment above INR 2,500 crore and employment to more than 2,500 persons shall be considered a mega industry under the scheme.