Government of Gujarat had launched a Scheme for financial assistance by way of Capital Subsidy and Credit linked Interest Subsidy to Micro, Small and Medium Enterprises to make them competitive globally.
A logistic park means an institution develop at least in an area of 20 Hectors, providing Logistic services like cargo aggregation/segregation, distribution, inter-modal transfer of material and container, open and closed storage, Custom bonded warehouse, container freight station, ambient condition storage for transit period, , material handling equipment and Business & commercial facilities as per requirement of the park, etc. for efficient movement and distribution of semi-finished or finished products.
Institution means any Industries Association / any enterprise registered under the Societies Act, Partnership Act or the Companies Act or SPV constituted for setting up of Logistics Park and shall be eligible to set up Logistic Park and will be eligible to avail assistance under the scheme.
• New Enterprise:
The Enterprise registered as an industrial unit under MSME Development act, 2006 with respective DIC as manufacturing enterprise.
Such enterprise has to commence production during the operative period for setting up new enterprise during operative period of the scheme.
• Existing Enterprise (Expansion or Diversification):
The Existing enterprise has to invest more than 50% of its existing gross fixed capital investment in fixed capital as on date of initiation of expansion/diversification. However, investment should be minimum 60% only in plant and machinery. Such expansion/ Diversification should have been completed and it should commence production during the operative period.
• Modernization of existing unit:
Modernization carried out by way of adopting new technology/ production process and/or improving quality of products, such Modernization of existing unit with investment in plant & machinery and equipment of its existing gross fixed capital investment by more than 25%.
An expansion/diversification and one modernization during operative period is eligible to new unit set up during operative period of the scheme.
Note: Old & second hand machinery will not be eligible for the above assistance.
• Capital Investment subsidy will be eligible only on Loan Amount disbursed by the Bank/Institution as may be specified.
| Area | Subsidy as a % of loan amount disbursed by the bank/Financial Institution | Maximum limit |
|---|---|---|
| Municipal Corporations limit | 10% of term loan | Rs. 15 lakhs |
| Other areas outside Municipal Corporations limit | 15% of term loan | Rs. 25 lakhs |
• Enterprise will be eligible for the assistance if it has obtained first disbursement during the operative period of the scheme.
• Interest Subsidy will be reimbursed after payment to the Bank/Institution
| Area | Rate of Interest subsidy - % on Outstanding Term Loan | Maximum limit per annum |
|---|---|---|
| Limit for Municipal Corporations | 5% | Rs. 25 lakhs |
| Limit for Other areas outside Municipal Corporations | 7% | Rs. 30 lakhs |
- If enterprise is set up with required equity contribution for the project @ 100% by youth/s having age less than 35 years as on the date of sanction of the term loan OR
- If enterprise is set up by with required equity contribution for the project @100% by SC/ST/Physically Challenged and Woman Entrepreneurs.
• In all maximum rate of interest subsidy shall not exceed 9% in other areas and 7% in municipal corporation areas.
Enterprise will be will eligible for the assistance if it has obtained first disbursement during the operative period of the scheme.
Enterprise will not eligible for subsidy under the scheme in case if term loan is sanctioned after one year from the date of commencement of commercial production, such.
From the date of commencement of commercial production, the Unit shall have to continue production at least for 5 years and subsidy already been disbursed will be recovered as land revenue arrears, if, it fails to do so than.
Total quantum of Capital Subsidy (State + Central) in any case shall not exceed the total loan amount disbursed by the bank/Financial Institutes.
Enterprise shall have option for date of availment of interest subsidy either from the date of first disbursement of the loan or from the date of commencement of commercial production. This opted date will be final and period of 5 year will start from that date.
The interest subsidy will be reimbursed to the enterprise that pays regular installments and interest thereof to the financial institution. Also it will not be eligible for reimbursement of interest subsidy for that default period, if the enterprise becomes defaulter for any period.
Enterprise will not eligible for Interest subsidy under the scheme in case term loan is sanctioned after one year from the date of commencement of commercial production.
Total quantum of Interest Subsidy (State + Central) in any case shall not exceed the total loan amount disbursed by the bank/Financial Institutes
The enterprise has to apply to concerned DIC in prescribed format with documents as specified in check list.
The application must be submitted within one year from the date of first disbursement of term loan or on the date of commencement of commercial production whichever is later.
First commercial sale bill will be the date of commencement of commercial production.
The enterprise shall have to obtain NOC from Municipal Corporation for doing the business, if enterprise located in the Municipal Corporation area.
Subsidy will be reimbursed only after the commencement of commercial production of the enterprise.
For the purpose of assistance under this resolution, the investment made in Gujarat shall be clubbed to decide the status of MSME.
The enterprise shall have to file information about annual production, sales, power consumptions and such other details as may be called for by DIC. (for each year ended on 31st March regularly).
The enterprise will have to employ at least 85% of the total employment and 60% of supervisory and managerial employment from local persons.
The enterprise has to give undertaking on his letter head singed by authorized signature to confirm that all Government dues are paid as on date.
Enterprise will have to observe pollution control measures as prescribe by GPCB or other competent authority.