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Chief Minister announces ‘ The Aatmanirbhar Gujarat Schemes for Assistance To Industries’

Proposed investment of ₹12.50 lakh crore and employment generation for 15 lakh people in the coming days

Various incentives to MSMEs, Large Industries and Mega-industries under the scheme

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Gandhinagar, Wednesday: Government of Gujarat, under Chief Minister Bhupendra Patel, has responded to Prime Minister Narendra Modi’s call of ‘Aatmanirbhar Bharat’ on 75 years of India’s independence. The state is on a mission to fulfil the mantra of ‘Aatmanirbhar Gujarat to Aatmanirbhar Bharat’.

As a step forward, CM Patel announced ‘The Aatmanirbhar Gujarat Schemes for Assistance to Industries’ in the presence of Minister of State for Industries Jagdish Vishwakarma.

Prime Minister Narendra Modi has envisioned an Aatmanirbhar Bharat by 2047, a year when India will celebrate 100 years of Independence. Under his leadership, India has risen as the Fastest Growing Economy on the global map. Given this opportune time, the scheme aims to attract industries and investors and thereby create large scale employment opportunities.

Giving details on the scheme, the CM said, “Gujarat is a land of entrepreneurs. The state is India’s manufacturing hub. It is prepared to lead India in fulfilling Prime Minister’s call of Aatmanirbhar Bharat”.

The CM also added that the scheme will be instrumental in providing special assistance needed by industries to enable them to become part of the global supply chains.

The scheme will go on 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 Prime Minister of India at COP 26 summit.

The “Aatmanirbhar Gujarat Schemes for incentives to industries” shall go on to encourage budding entrepreneurs to fulfil 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.

On this occasion, Minister of State for Industries Jagdish Vishwakarma said, “33 lakh MSMEs of Gujarat have been key contributors to Gujarat’s inclusive growth and generation of sustainable employment opportunities, particularly in semi-urban and rural India. Further, the state has established itself as a leader in various key sectors of the economy and has become the preferred choice of investments for investors.

Incentives to MSMEs under ‘The Aatmanirbhar Gujarat Schemes for Assistance to Industries’ are as under:

• Net SGST reimbursement to MSMEs upto 75% of fixed capital investment over 10 years
• Capital Subsidy upto INR 35 lakhs for Micro Industries
• Interest subsidy to MSMEs upto INR 35 lakhs per annum for upto 7 years
• EPF reimbursement for 10 years
• Incremental incentives to women entrepreneurs, young entrepreneurs, startups and differently abled entrepreneurs
• Electricity Duty exemption for 5 years

Aatmanirbhar Gujarat Scheme for Assistance to Large Industries

While MSMEs are crucial for development of a resilient industrial ecosystem, it is also important to encourage 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. With this objective, the Government of Gujarat has also launched “Aatmanirbhar Gujarat Scheme for assistance to Large Industries”.

Incentives to large industries under the ‘The Aatmanirbhar Gujarat Scheme for Assistance to Large Industries’ are as under:

• Thrust sectors: Keeping in view the global trends and future of manufacturing, 9 sectors (with 22 sub sectors) have been recognized as Thrust manufacturing sectors in line with the vision of an Aatmanirbhar Bharat.
• Interest subsidy to Large enterprises upto 12% of Fixed Capital Investment
• EPF reimbursement for 10 years
• Net SGST reimbursement to Large industries upto 75% of Fixed Capital Investment over 10 years
• Incremental support to thrust manufacturing sectors
• Electricity Duty exemption for 5 years

’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. With this view, the Government of Gujarat has launched the Aatmanirbhar Gujarat Scheme for assistance to Mega Industries.

Incentives to Mega industries under the ‘The Aatmanirbhar Gujarat Schemes for Assistance to Mega Industries’ are as under:

• Thrust sectors: Keeping in view the global trends and future of manufacturing, 10 sectors (with 23 sub sectors) have been recognized as Thrust manufacturing sectors in line with the vision of an Aatmanirbhar Bharat.
• Mega Industrial Units in these thrust sectors with investment above 2500 Crore and employing more than 2500 persons shall be given incentives under this scheme.
• Interest subsidy to Mega enterprises upto 12% of Fixed Capital Investment
• EPF reimbursement for 10 years
• Net SGST reimbursement to Mega industries upto 18% of Fixed Capital Investment over 20 years
• Reimbursement of SGST on Capital Goods: 100% of Input SGST paid on capital goods shall be reimbursed over 20 years
• Reimbursement of Stamp Duty and registration fees: 100% reimbursement of stamp duty and registration charges paid to Government of Gujarat for purchase and/or lease of land meant for the project
• Electricity Duty exemption for 5 years

MOS for Industries expressed confidence that Aatmanirbhar Gujarat schemes for assistance to industries shall 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.

Chief Principal Secretary to the Chief Minister K.Kailashnathan, Chief Secretary Pankaj Kumar, Additional Chief Secretary of Industries Department Raj Kumar, Industries Commissioner Dr. Rahul Gupta and senior officers were present during the launch of this scheme.

Source: Information Department, Gujarat