In the new industrial policy announced by the Government of Gujarat, emphasis is laid on the need to encourage balanced industrial development and to accelerate the pace of industrialization to create direct and indirect employment in rural and underdeveloped areas. The share of the state in total export of the country is around 17%, of which one third export is from the industries set up in the small scale sector. In the new industrial policy, the State Govt. for the first time has planned to make the export doubled in the coming ten years and also to attract private sector more in infrastructure services.
The Government of Gujarat is pleased to announce the implementation of a scheme to encourage setting up export parks and exporting units, to earn foreign exchange, industries of the state could capture international market by manufacture of quality products and thus overall employment opportunities in the industry could be enhanced.
1. Title
This scheme shall be known as “Incentive scheme for Export Oriented Park and Export Oriented Unit-2000.
2. Duration of Scheme
The scheme shall come into force from 15-11-2000.
3. Definitions
1. Agency setting up Export Oriented Park.
Agency setting up Export Oriented Park means Association or Cooperative Society registered under Societies Act, Federation or Chamber or Chamber of Commerce and Industries, Partnership Firm, Registered Trust, Company registered under the Companies Act 1956, or a statutory body.
2. Export Oriented Unit
Export Oriented Unit means a unit, which exports more than 50% of its production.
3. Export House
Export house declared under the EXIM Policy of Govt. of India
4. Export
Export means the commodities that are supplied form India to other country and the commodities which are provided to local units as import substitutes (deemed export).
5. Original Investment
Original investment in existing industrial estate means total fixed capital investment made till the date the expansion or diversification is undertaken.
6. Expansion of Export Park
When the expenditure of a minimum of 25% of the original investment is incurred for developing infrastructure facilities of permanent nature in an existing industrial estate, it shall be considered as expansion.
7. Permanent infrastructural Facilities
Permanent infrastructure facilities would mean capital investment for providing facilities of land, building required for running the park, buildings, electricity, water, telecommunications, roads, bores, fencing, testing center etc. for common facility.
4. Eligible Fixed Capital Investment
Land
Price of land that is actually paid for land required for Export Park. The expenditure covers the amount spent towards acquisition, purchase and transfer.
New Building
New building means actual expenditure incurred towards construction of buildings required for running the Export Park, office buildings and buildings given on rent for common facilities.
Other Construction
Other construction will consist of compound wall, internal roads, wells, water tank, pipeline and other constructions approved by the sanctioning committee as per the requirements of the project.
Infrastructure Facilities
Actual expenditure incurred for creating infrastructure facilities generally required for export-oriented industries in the Export Park. i.e. power line, common effluent treatment plant, testing center, sewerage, water connection, etc. and also all additional facilities that are decided by the sanctioning committee of Export Park, shall be considered as eligible capital investment.
Technology Know-how
Expenditure incurred towards the fee for technology/consultancy/engineering etc. which will be considered up to a maximum of 5% of the other admissible expenditure of the Export Park.
5. Non Eligible Capital Investment
1. Working Capital
2. Goodwill Fee.
3. Engineering Fee.
4. Commissioning Fee.
5. Royalty.
6. Pre-operative Expenses
7. Any type of second hand plant and machinery purchased from within the country.
8. Interest transferred to capital account
9. Transportation vehicles for any type of movement.
6. Eligible Area
Any area of the entire state shall be eligible.
7. Export Park
Export Park is a park, where following facilities in regard to export and export house with a purpose to enhance exports will be created.
· Facilities for State approvals.
· Single window system for the approvals of central Govt. including customs, excise etc. for export-import.
· Facilities for quality, testing and certification.
· Trade extension and exhibition center.
· Offices for trading firms and companies
· Other facilities of bank, insurance, entertainment, residence, hotel etc.
· Arrangements for management of complex and security.
· Other facilities for export promotion.
9. Financial and other Assistance for Export Park and Export Units.
9.1 Export Park
Cash Subsidy
a. New Park
Cash subsidy at the maximum rate of 30% of the fixed capital investment subject to a maximum of Rs. 250 lakhs shall be admissible to Export Park set up on private basis.
Expansion
In case of expansion of existing industrial estate, cash subsidy of 30 % of the eligible capital investment made for expansion upto a maximum limit of Rs. 150 lakhs shall be offered once.
b. If this type of park will be set up by GIDC, total expenditure of the land will be reimbursed.
c. Cash subsidy will be disbursed after the Park is functional.
9.2 Export Units
Export oriented unit being setup in Export Park or set up in other area of the state will be eligible for following incentives.
a. Exemption from Electricity Duty
Such units shall be entitled for getting exemption from payment of electricity duty for a period of 5 years. However during the period, the unit shall have to maintain the status of an export-oriented unit.
b. Power Cut
Such units shall be exempted from power cuts.
c. Exemption from Octroi.
Such units shall be entitled for exemption from payment of octroi duty as levied by local self governing institutions.
10. Committee for sanctioning subsidy for Export Park
A committee comprising following members is constituted for sanctioning cash subsidy and other incentives to Export Park
| 1. | Additional Chief Secretary (Industries and Mines) | Chairman |
| 2. | Industries Commissioner | Member |
| 3. | Vice Chairman and Managing Director, GIDC | Member |
| 4. | Addl. Secretary/ Deputy Secretary (I & M) | Member |
| 5. | Secretary F.D. (Expenditure) or his representative | Member |
| 6. | Managing Director, Gujarat Maritime Board | Member |
| 7. | Joint D.G.F.D. | Member |
| 8. | Development Commissioner, Kandla | Member |
| 9. | Representative of Customs Collector | Member |
| 10. | Additional Industries Commissioner | Member-Secretary |
| 11. | The expenditure under the scheme shall be debited to budget head – Demand No. 49, Major Head – 2852 “Industries” – Minor Head – 800 – Other Expenditure (Plan)” and shall be met from the provisions made thereunder. | |
12. Interpretation
The committee prescribed in Para 10 shall make the decision in regard to the interpretation of any of the matters of this Resolution.