1. Preamble
With the globalisation and liberalization, new horizons of growth have opened up all over India and in Gujarat in different fields e.g. Information Technology, Telecommunication, port-based activities, consulting services regarding industrial development and other types of Industrial and allied services. In this context, the state Government has considered it necessary to declare an incentive scheme for the development of this type of service sector under New Industrial Policy – 2000 with the objective of providing large scale employment opportunities to the unemployed youth in the service sector and the existing units engaged in service industry may become self-reliant through expansion and thus this sector may develop more and more as also the industries of the state may get requisite ancillary services easily. In this context, the state Government is pleased to implement the following scheme.
2. Title
The scheme shall be known as the scheme of interest subsidy for service sector industries established by the educated unemployed – 2000.
3. Duration of Scheme
The scheme shall implemented from Date 15/11/2000.
4. Definitions.
A. Service Industries.
Auto Repairing
Computerised design and graphics
Testing laboratories
Weigh-bridge
Information Technology enabled services for industries like ISD/STD booth, teleprinter , fax service etc.
Port-based services like ship repairing, transport on port, stock-yard godown, refrigeration vehicles, different types of engineering services, testing lab, off-shore platform, cargo.
Consulting services for industries
In addition to this, in view of the list of service Industries declared by the Government of India, the services which are recognized as service activities by the implementation committee from time to time, shall be treated as service industries.
B. Unemployed
Local young man or woman, having age between 18 and 35 years and who has passed minimum standard X and producing an affidavit of being unemployed shall be considered as an unemployed person.
C. Local
A local unemployed person means a candidate born in Gujarat state or holding domicile certificate for a continuous stay of a minimum of 15 years in Gujarat.
D. Eligible Fixed Investment
Fixed investment required for project e.g.
Land
New Building
New machinery or second hand imported machinery
Other new assets
The financial institutions should have sanctioned term loan on this investment.
5. Conditions for Eligibility
1. An affidavit shall be produced in prescribed Performa as per the definition of unemployed.
2. Assistance shall be available only for the establishment of new unit.
3. The interest subsidy shall be available only to a unit paying regular instalments and interest. If a unit becomes defaulter during the interim period (time – barred debtor) ( continuously for three installments), interest subsidy shall not be admissible for that period. The period of default shall be deducted from three years. The interest subsidy shall not be given till the default on the loan continues.
4. The term loan should have been disbursed during the validity period of the scheme.
5. The unit shall have to continue its service activities during the validity period of the scheme.
6. The interest subsidy shall be given for the period till the amount of loan is repaid or for three years, whichever is earlier.
7. Any one person shall be given subsidy only once under the scheme.
6. Subsidy
1. Service industries shall be given interest subsidy at a rate of 5 % upto a maximum of Rs. 5 lakhs on applicable rate of interest of term loan taken by the service industry. E.g. if bank charges 12 % interest on finance, the amount thereof at the rate of 5 % upto a maximum of Rs. 5 lakhs shall be considered eligible for incentives under the scheme.
2. The interest subsidy shall be given for three years. The interest subsidy shall be given to service-oriented unit from the date it starts its service activities or pays the amount of interest, whichever is later.
3. The interest subsidy shall be given only on original interest. The penal interest or interest on interest shall be not taken into account.
7. Payment of subsidy.
Detailed procedure for the payment of interest subsidy shall be decided by the Industries Commissioner, which shall be issued through circular.
8. Authority giving approval
An officer authorized by the industries Commissioner for approving subsidy under the scheme.
9. Other Conditions
The amount of subsidy approved and paid under the scheme shall be subject to following terms and condition and if any of the conditions is violated, the amount of subsidy shall be recovered as arrears of land revenue. A unit availing of the benefit of subsidy shall provide information as required by the state Government from time to time.
(a) The service activity of the unit shall be continued during the period of subsidy.
(b) Service sector unit shall give information as regard to service activity, employment and any other issue as required by the State Government
(c) Under the scheme, units availing incentives shall recruit local persons on a minimum of 85 % of all the posts and on a minimum 60 % of the managerial and supervisory posts. If found necessary, its scrutiny shall be made by the General Manager, District Industries Center and Employment Officer jointly. The percentage of local employment shall be maintained permanently. If a unit fails in giving employment to local persons as per the Employment Policy, the amount of subsidy shall be recovered as arrears of land revenue.
A person availing benefits under any other scheme or bankable scheme of the state Government, shall not be extended benefits under the scheme and a person who gets benefits under the scheme shall not be extended benefits of any other scheme of the state government.
10. Commissioner of Industrial shall issue instruction for administration and implementation of the scheme.
11. Under the scheme, a representation in regard to all the matters of interpretation, quarrel or dispute shall be made to the commissioner for Industries. An applicate officer shall be Additional Chief Secretary (Industry) and their decision shall be considered as final and binding to an applicant unit.