Government of Gujarat

AATMANIRBHAR
GUJARAT
S C H E M E S 2022
for Assistance to Industries

Industries Commissionerate
Industries and Mines Department
Government of Gujarat
Contents

1. Background 04

2. Aatmanirbhar Gujarat Scheme for assistance to MSMEs 05

3. Aatmanirbhar Gujarat Scheme for assistance to 08

Large Industries and Thrust Sector

4. Aatmanirbhar Gujarat Scheme for assistance to 10

Mega Industries
 1. Background
As India completes 75 years of Independence with “Azadi ka Amrit Mahotsav”
and the Nation gears towards the next milestone of 100 years of Independence
in 2047, Hon’ble Prime Minister of India has laid down a clear vision of an
Aatmanirbhar Bharat, a developed country. This envisions an India with a
reduced import dependence, energy independence and at the same time
strategically placed in global supply chains. In the current global geopolitical
scenario and at a time when the world recovers from the aftershocks of the
pandemic and experiences the re-alignment of global supply chains, India has
emerged as a bright spot by being amongst the fastest growing economies in
the world. With this background, it is opportune time to support industries to
attract investments and support local manufacturing and thus accelerate this
growth and create employment opportunities in the state.
In order to facilitate the same, the Government of India has been undertaking
various initiatives. These include undertaking reforms for ease of doing
business, reduction in compliance norms, relaxation of FDI limits etc. To enable
companies to achieve economies of scale and facilitate building of “Global
champions”, the Central Government has also rolled out PLI schemes for a
range of sectors. This is supported by an integrated infrastructure development
plan under the PM Gati Shakti National Masterplan for multi-modal connectivity
envisioning seamless connectivity for movement of people, goods and services
from one mode of transport to another.
Being an entrepreneurial society, Gujarat is the most industrialized state in India,
with the highest contribution to the national manufacturing output. Over time,
the State has emerged as a national leader in several key sectors. Gujarat's well-
developed business ecosystem enabled by vast infrastructure and driven by
the investment-friendly policies of the Government has attracted several large-
scale investments across sectors.
Given the fact that Gujarat, a land of entrepreneurship, has been manufacturing
hub of India, it is imperative for the state to take lead towards contributing to the
larger vision of an Aatmanirbhar Bharat by envisaging an Aatmanirbhar
Gujarat.
In order to facilitate this vision, it is imperative to give incremental support to
industries and particular thrust areas, which shall be critical for India in the
coming years. It is equally important to encourage industries to transition
towards green manufacturing practices and adopt decarbonization initiatives
to remain globally competitive and also align with the “Panchamrut” principles
laid down by the Hon'ble Prime Minister of India at COP 26 summit. To achieve
this objective, the Government of Gujarat has come up with the Aatmanirbhar

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 AATMANIRBHAR GUJARAT SCHEMES FOR ASSISTANCE TO INDUSTRIES

Gujarat Schemes for assistance to industries. The “Aatmanirbhar Gujarat

Schemes for incentives to industries” shall go on to encourage budding
entrepreneurs to fulfill their entrepreneurial ambitions not only by de-risking
their investments by way of increased incentives, but also, encouraging youth
to innovate and become job creators, thereby creating large scale quality job
opportunities. The employment linked incentives to MSMEs, Large and Mega
enterprises shall also facilitate formalization of industrial workforce of Gujarat.
It will also create enhanced opportunities for development of new
manufacturing sectors and their ancillary ecosystem in Gujarat that shall set
global examples in manufacturing.

2. Aatmanirbhar Gujarat Scheme for assistance to MSMEs

Micro, small, and medium-sized enterprises (MSMEs) have been key
contributors to Gujarat’s inclusive growth and generation of sustainable
employment opportunities, particularly in semi-urban and rural India. Over the
time, MSMEs have moved up the value chain from manufacturing of simple
goods to sophisticated products. MSMEs also play a central role in nation
building by generating large employment opportunities for youth as well as
through industrialization of rural & backward areas, and thus, reducing regional
imbalances, assuring more equitable distribution of national income and wealth.
However, MSMEs function in a highly competitive environment and require an
enabling ecosystem to sustain growth. In order to enable Gujarat’s MSMEs to be
globally competitive, boost value addition and also encourage youth to pursue
their entrepreneurial ambitions, MSMEs shall be eligible for following benefits
under the Aatmanirbhar Gujarat Scheme for assistance to MSMEs:

2.1 Micro, Small and Medium Enterprises:

For the purpose of eligibility under this scheme, a Micro, Small or Medium
enterprise means an enterprise which has fixed capital investment made in
Plant and Machinery as per following:
a. Micro: Less than or equal to INR 1 crore
b. Small: More than INR 1 crore and less than or equal to INR 10 crore
c. Medium: More than INR 10 crore and less than or equal to INR 50 crore
The enterprise must have obtained acknowledgement/ registration, as the case
may be from appropriate authority.

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 2.2 Assistance of Capital Investment Subsidy to Micro enterprises
Micro enterprises shall be eligible for capital investment subsidy based on
the category of taluka:

Category of taluka Quantum of incentive

Category 1 25% of term loan amount upto INR 35 lakhs.
Category 2 20% of term loan amount upto INR 30 lakhs.
Category 3 10% of term loan amount upto INR 10 lakhs.

2.3 Assistance for Interest Subsidy to Micro, Small and Medium

Enterprises in manufacturing sector:

Category of taluka Quantum of incentive

Interest subsidy @7% on Term Loan with the

Category 1 maximum amount of Rs. 35 lakhs per annum for a
period of 7 years
Interest subsidy @6% on Term Loan with the
Category 2 maximum amount of Rs. 30 lakhs per annum for a
period of 6 years
Interest subsidy @5% on Term Loan with the
Category 3 maximum amount of Rs. 25 lakhs per annum for a
period of 5 years

a. 1% additional interest subsidy to differently abled entrepreneur,

Women entrepreneur and registered startup in manufacturing sector.

b. 1% additional interest subsidy to young entrepreneur below age of 35

years on the date of sanction of term loan.

c. In any case, eligible enterprise shall have to bear minimum 2% interest

levied on term loan by Bank/Financial institution

d. An Existing enterprise which installs new solar power plant or any

other renewable power plant for captive consumption in the premises
will be eligible for interest subsidy in accordance with the location of
the Enterprise. In addition to the Interest Subsidy as mentioned above
special provision is made for the interest subvention on such
installation. However, incentive will be available only once. If an
enterprise has already availed of this subsidy under the previous
scheme, such enterprise shall not be eligible for this subsidy under
this scheme.

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 AATMANIRBHAR GUJARAT SCHEMES FOR ASSISTANCE TO INDUSTRIES

2.4 Net SGST reimbursement to Micro, Small and Medium Enterprise

(MSMEs)

MSMEs shall be eligible for reimbursement of net SGST based on the taluka
category of the project subject to following ceilings:

Category of taluka Quantum of incentive

Category 1 100% of net SGST for 10 years upto 7.5% of eFCI p.a.

Category 2 90% of net SGST for 10 years upto 6.5% of eFCI p.a.

Category 3 80% of net SGST for 10 years upto 5% of eFCI p.a.

The period of 10 years shall be from the date of commencement of

commercial production.
2.5 EPF Reimbursement to MSMEs

MSMEs shall be able to claim reimbursement of employer's

contributionunder Employees' Provident Fund (EPF) made by them for
their new employees working in Gujarat for a period of 10 years from DoCP.
The reimbursement shall be made subject to following criteria:
(a) 100% of employer's statutory contribution under EPF amount paid, and
(b) The ceiling of incentive amount per employee will be 12% of the
employee's basic salary plus applicable Dearness Allowance (DA) and
retaining allowance or INR 1800 per month, whichever is lower.

2.6 Other Schemes for comprehensive support to MSMEs:

The MSMEs will continue to avail support under following schemes:

• Interest Subsidy to Service Sector MSMEs
• Assistance for Quality Certification
• Financial Support to MSMEs in ZED Certification
• Assistance in implementation of Information and Communication
Technology
• Assistance for Technology Acquisition
• Assistance for Patent Registration
• Assistance for saving in consumption of Energy and Water
• Assistance for raising Capital through SME Exchange
• Assistance for reimbursement of CGTMSE fees
• Rehabilitation of Sick enterprise
• Assistance for Power Connection charges
• Assistance in Rent to MSEs

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 3. Aatmanirbhar Gujarat Scheme for assistance to
Large Industries and Thrust Sector
Large enterprises play an important role in industrial development of a
region. Such industries help in developing an ecosystem around them and
thereby having a multiplier effect on employment opportunities. Gujarat’s
well-developed business ecosystem enabled by vast infrastructure and
driven by the investment-friendly policies of the Government has attracted
several large-scale investments across sectors. Such investments have had
a multiplier effect on the state and national economy as well as
employment generation. These large-scale investments have also created
substantial opportunities for MSMEs in the state for providing forward and
backward linkages. Since India is one of the fastest growing economies in
the world, it is opportune time to support such large industries to attract
such investments and support local manufacturing. Hence, manufacturing
enterprises with fixed capital investment in Plant and Machinery above INR
50 crore shall be eligible for following incentives:
3.1 Thrust manufacturing sectors:
S. No. Sector Sub-sectors
Green Hydrogen/ Green Ammonia
Electrolyser
1 Green Energy ecosystem Renewable energy equipment
Battery Storage
Fuel Cells
Aviation related manufacturing
Electric Vehicles
2 Mobility
Auto or Auto Components
Space related manufacturing
Electrical machinery and/or equipment
3 Capital Equipment Industrial Machinery and/or equipment
Telecom related machinery
and/or equipment
Metals
4 Metals and Minerals Mineral processing
Ceramics
Technical Textiles
5 Textile & Apparel
Textile, Apparel & Garments
Municipal solid/liquid waste recycling
6 Sustainability equipment manufacturing
7 Agro Processing Agro and Food Processing
Gems and Jewellery including Lab Grown
8 Gems and Jewellery
Diamonds
Pharmaceuticals and/or APIs
9 Healthcare
Medical devices

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 AATMANIRBHAR GUJARAT SCHEMES FOR ASSISTANCE TO INDUSTRIES

3.2 Assistance of Interest Subsidy

Interest subsidy will be given as per following rates

Category of General
taluka Thrust

Interest subsidy @ 7% on Interest subsidy @ 7% on

Category 1 Term Loan for 10 years upto Term Loan for 10 years upto
1% of eFCI p.a. 1.2% of eFCI p.a.
Interest subsidy @ 7% on Interest subsidy @ 7% on
Category 2 Term Loan for 8 years upto Term Loan for 10 years upto
1% of eFCI p.a. 1% of eFCI p.a.
Interest subsidy @ 7% on Interest subsidy @ 7% on
Category 3 Term Loan for 6 years upto Term Loan for 8 years upto
1% of eFCI p.a. 1% of eFCI p.a.

In any case, the industrial undertaking shall have to bear a minimum 2%

interest levied on term loan by the financial institution.

3.3 Net SGST reimbursement

The eligible large industrial undertaking will be eligible for reimbursement of
net SGST based on the taluka category of the project subject to following
ceilings:
Category of General Sector
taluka Thrust Sector

100% of net SGST for 10 years 100% of net SGST for 10

Category 1 upto 7.5% of eFCI p.a. years upto 8% of eFCI p.a.
90% of net SGST for 10 years 90% of net SGST for 10 years
Category 2 upto 6.5% of eFCI p.a. upto 7% of eFCI p.a.
80% of net SGST for 10 years 80% of net SGST for 10 years
Category 3 upto 5% of eFCI p.a. upto 5.5% of eFCI p.a.
The period of 10 years shall be from the date of commencement of
commercial production.

3.4 EPF Reimbursement

Eligible large industrial undertakings shall be able to claim reimbursement of
employer’s contribution under Employees’ Provident Fund (EPF) made by them
for their new employees working in Gujarat for a period of 10 years from DoCP.
The reimbursement shall be made subject to following criteria:
a. 100% of employer’s statutory contribution under EPF amount paid,
and
b. The ceiling of incentive amount per employee will be 12% of the
employee's basic salary plus applicable Dearness Allowance (DA)
and retaining allowance or INR 1800 per month, whichever is lower

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 4. Aatmanirbhar Gujarat Scheme for assistance to Mega
Industries
In order to be globally competitive, it is important to set up mega scale
manufacturing enterprises and build on economies of scale. These Mega
industries act as anchor units and enable building up of an entire
ecosystem of MSMEs & large industries around them along with
development of allied services. Such mega scale industries would also help
in increased research & development in such sectors. With this view, the
Government of Gujarat has launched the Aatmanirbhar Gujarat Scheme for
assistance to Mega Industries.

4.1 Mega Industrial Unit

The Mega Industrial Unit must fulfil following criteria:

1. It must be a manufacturing unit, and

2. Investment in Plant & machinery of at least INR 2,500 crore, and
3. Provides direct employment to atleast 2,500 persons, and
4. Must belong to one of the thrust sectors defined in the policy

4.2 Thrust manufacturing sectors:

S. No. Sector Sub-sectors
Green Hydrogen/ Green Ammonia
Electrolyser
1 Green Energy ecosystem Renewable energy equipment
Battery Storage
Fuel Cells
Aviation related manufacturing
Electric Vehicles
2 Mobility
Auto or Auto Components
Space related manufacturing
Electrical machinery and/or equipment
Industrial Machinery and/or equipment
3 Capital Equipment
Telecom related machinery
and/or equipment
Metals
4 Metals and Minerals Mineral processing
Ceramics
Technical Textiles
5 Textile & Apparel
Textile, Apparel & Garments

6 Sustainability Municipal solid/liquid waste recycling

equipment manufacturing
7 Agro Processing Agro and Food Processing

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 AATMANIRBHAR GUJARAT SCHEMES FOR ASSISTANCE TO INDUSTRIES

Gems and Jewellery including Lab Grown

8 Gems and Jewellery Diamonds
9 Chemicals Chemicals
Pharmaceuticals and/or APIs
10 Healthcare
Medical devices

4.3 Assistance of Interest Subsidy to Mega Industrial Units

Interest subsidy will be eligible at @7% on Term Loan subject to maximum
of 1.2% of Eligible Fixed Capital Investment p.a for 10 years

In any case, the Mega industrial unit shall have to bear a minimum 2%
interest levied on term loan by the financial institution.

4.4 Net SGST reimbursement to Mega Industrial Units

The eligible projects will be eligible for reimbursement of net SGST at 100%
of net SGST subject to maximum 0.9% of eFCI p.a. for 20 years.

The eligible period of 20 years shall be from the date of commencement of

commercial production.

4.5 Reimbursement of SGST on capital goods

Eligible Mega industrial units will be eligible for 100% reimbursement of
Input SGST paid on capital goods to the extent input tax credit is admissible
under Gujarat GST Act 2017.

The reimbursement shall be provided in twenty equal annual instalments.

4.6 EPF Reimbursement

Eligible Mega industrial units shall be able to claim reimbursement of
employer’s contribution under Employees’ Provident Fund (EPF) made by
them for their new employees working in Gujarat for a period of 10 years
from DoCP. The reimbursement shall be made subject to following criteria:

a. 100% of employer’s statutory contribution under EPF amount paid,

and
b. The ceiling of incentive amount per employee will be 12% of the
employee's basic salary plus applicable Dearness Allowance (DA)
and retaining allowance or INR 1,800 per month, whichever is lower

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 4.7 Reimbursement of Stamp Duty and registration fees
Eligible Mega industrial units shall be eligible to claim 100% reimbursement
of stamp duty and registration charges paid to Government of Gujarat for
purchase and/or lease of land meant for the project.

MSME, Large and Mega Industries shall be eligible to receive exemption

from Electricity Duty as applicable under the Gujarat Electricity Act 2003.

The Aatmanirbhar Gujarat schemes for assistance to industries is expected

to transform the Gujarat's manufacturing landscape in the coming years.
The scheme is expected to attract an investment of ~INR 12.5 lakh crores
generating employment opportunities for over 15 lakh people in Gujarat.

For detailed information on “Aatmanirbhar Gujarat Schemes for assistance

to industries”, please refer to http://www.imd-gujarat.gov.in or
https://ic.gujarat.gov.in

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 AATMANIRBHAR GUJARAT SCHEMES FOR ASSISTANCE TO INDUSTRIES

Notes:

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 Notes:

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 Aatmanirbhar
Gujarat Se
Aatmanirbhar
Bharat

Industries Commissionerate
Industries and Mines Department
Government of Gujarat
Government of Gujarat

Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar 382 010. Gujarat. INDIA
Ph. : 23252683/23252617 | E : [email protected] | W : www.ic.gujarat.gov.in