In the new industrial policy announced by the Government of Gujarat, emphasis is laid on requirements of creating more employment opportunities in industrial, commercial and service sectors to accelerate the flow of industrial investment. The state Government intends to develop infrastructure and social amenities on a large scale to make the state a center of attraction for industrialists and entrepreneurs. When the sale tax incentive schemes have come to an end, the industries will get adequate investment opportunities, if adequate and qualitative facilities are made available at one place. The Industrial Development Corporation of the state Government is already establishing such estates. But alongside, the need of the hour is to encourage private sector for investment in this sector. In view of these, it was under the consideration of Government for quite some time to introduce a specific scheme for establishment of Industrial Parks by private sector.
Keeping this in view, Government has decided to implement an incentive scheme for setting up of Industrial parks by private sector and creating employment opportunities, apart from the industrial estates being set up by Gujarat Industrial Development Corporation. With this approach, the Government has decided to implement a scheme of giving incentives as mentioned below for setting up employment-oriented industrial parks, high-tech parks, investment -oriented parks and trade centres.
1. Title
The scheme will be known as ‘Industrial Parks Scheme 2000’ through private agencies.
2. Duration
The scheme will come into force from 15/11/2000
3. Definitions
3.1 Private Agencies
Private agencies would mean an association of industrialists and co-operative societies registered under Society Act, Federation or Chamber of Commerce and Industries, partnership firm, registered trust or a company registered under Companies Act, 1956
3.2 Industrial Park
Industrial park means an industrial estate where infrastructure facilities required for industries and service sector activities like land, water, sewerage, roads, electricity, communication network, effluent treatment and disposal facilites for treated effluents , etc. are to be developed.
3.3 Trade Center
Trade center means arrangement for trading and where following facilities also have been developed.
3.4 Eligible Fixed Capital Investment
Cost of land means an amount actually paid for land necessary for industrial park. The expenditure includes the amount spent legally for acquisition, purchase and transfer.
New building means buildings built for providing facilities in industrial park, buildings built or given on rent or lease for Government/Semi Government organisations as well as the office building for running the organisations. The cost of the building shall be considered as per the standards determined by the State Level Committee or the price actually given, whichever is less.
Other constructions consist of compound wall, internal roads, well, water tanks, internal pipeline, sewerage and the constructions that are approved by the State Level Committee as per the requirement of project, shall be taken into account.
Infrastructure facilities commonly required for industries in industrial park – e.g. electric line, testing center, communication network, pipeline from water/gas source to park, pipeline from park to the disposal point for the disposal of effluents and such other facilities in regard to the industrial park that may be approved by the State Level Committee. The actual expenditure incurred for developing these facilities shall be considered as eligible investment.
The expenditure incurred towards the fees for technology/consultancy/ engineering etc. shall be considered admissible at a maximum rate up to 5 % of the other items of eligible expenditure for Industrial Park.
3.5 Non-admissible Investment
The following investment shall not be considered admissible for the purpose of subsidy.
1. Working Capital
2. Goodwill Fee
3. Commissioning Fee
4. Royalty
5. Pre-operative Expenses
6. Any type of plant and machinery
7. Interest transferred to capital account
8. Transport-vehicles for any type of movement of materials
9. Immovable assets.
10. Consumable goods.
3.6 Scheme of Employment-oriented park
Under this scheme, a Park being established for one or more of the following activities shall be considered as employment-oriented park.
3.7 Hi-Tech Park Scheme
Under this scheme, a Park being set up for one or more of the following activities shall be considered as Hi-Tech Park.
3.8 Scheme of Investment-oriented park
An industrial park which is not included under the scheme of employment-oriented park or hi-tech park, and in which the total fixed capital investment in industrial units being established shall be Rs 500 crore or more, including the investment made for setting up of industrial park.
4. Financial Assistance
4.1 Employment Oriented Park
|
Condition |
Criteria for assistance |
|
To develop facilities for setting up a minimum of 100 units or more or creating more than 2,500 employment opportunities in the Industrial Park |
Subsidy at the rate of 10 % of capital investment up to a maximum of Rs. 1 crore |
|
200 units or more than 5,000 employment opportunities |
Subsidy at the rate of 10 % of capital investment up to a maximum of Rs. 2 crore |
4.2 Hi-tech park
Subsidy at the rate of 50 % of capital investment, subject to a maximum of Rs. 250 lakhs will be admissible.
4.3 Investment park
Subsidy at the rate of 10 % of capital investment, subject to a maximum of Rs. 250 lakhs will be admissible.
4.4 Quantum of Subsidy for setting up of trade center
|
Condition |
Incentive |
|
Trade center having a built-up area of 5,000 sq mtr or more for use |
Subsidy at the rate of 10 % of the eligible capital investment – maximum cash subsidy of Rs. 50/- lakhs. |
|
Trade-center having a built-up area of 10,000 sq mt or more for use |
Subsidy at the rate of 10 % of the eligible capital investment-maximum cash subsidy of Rs. 100 lakhs |
5. Common terms and conditions for setting up of Industrial parks
5.1 Such parks shall be set up by private parties.
5.2 Priority will be given to the land of closed mills for such park. Similarly, priority will be given to the park established in the estates of Gujarat Industrial Development Corporation. The subsidy shall be given to the parks set up on private as well as Government land.
5.3 Management and security arrangement in the complex shall have to be made
5.4 Facilities of bank, branch of post office, restaurant etc shall be created as per the requirement in the park.
5.5 Industrial park /Trade center shall have to be operated for a minimum of five years. Otherwise, the cash subsidy disbursed shall be recovered with interest at the rate of 18 % as arrears of land revenue. This cash subsidy shall be disbursed after the industrial park commences functioning.
5.6 The benefit under any one scheme of the state Government shall be available. A person or a unit availing of benefit under one scheme shall not be eligible to receive benefits under any other scheme of the state Government.
5.7 The agency setting up such industrial park shall get these benefits, but the units to be set up in the industrial park shall not get benefits under the scheme on individual basis. Moreover, if an industrialist establishing unit in industrial park has paid any amount to the agency setting up industrial park, shall not be eligible to receive benefit under any of the schemes of the state Government against such a payment.
6. Sanctioning Authority
6.1 For sanctioning the benefits of cash subsidy and other subsidy funder the scheme of Industrial Parks, (excluding hi-tech park) and Trade Centre, a state level committee, comprising following members has been constituted
6.2 State level committee comprising the following members is constituted for sanctioning the scheme of Hi-tech park.
1. Additional Chief Secretary (Industry) Chairman
2. Industries Commissioner Member
3. Vice Chairman and Managing Director , GIDC Member
4. Secretary , Higher Education Member
5. Secretary, FD (Expenditure) Member
6. Managing Director , iNDEXTb Member
7. Director, Space Applications Center Member
8.
Vice Chancellor of the University
as
decided by the Committee from
amongst the Universities in the State Member
9. Chief Industrial Advisor Member Secretary
7. Procedure for Disbursement
On completion of the scheme, the sanctioned amount of subsidy shall be disbursed after scrutiny by the officer/officers as decided by the Industries Commissioner.
8. Interpretation
In case of any misinterpretition or dispute on any of the provisions of this Resolution, the decision taken by the Committee prescribed in para(6) shall be final and binding to the applicant/Unit/Agency.