The Gujarat Industrial Policy 2020, announced by the Government of Gujarat, is designed to bolster industrial development and encourage investment in the state, making it more attractive for industries ranging from small scale to large scale. This policy replaces the previous one from 2015 and introduces several key initiatives, incentives, and support mechanisms for businesses. The policy aims to enhance Gujarat's manufacturing capabilities, promote exports, create jobs, and ensure sustainable industrial growth.
This policy shall be valid for a period of five years from 7th August 2020
| Taluka Category | Capital Subsidy | Interest Subsidy |
|---|---|---|
| Category 1 | @25% of eligible Term Loan Amount subject to a maximum amount of Rs. 35 lakhs; If the Eligible FCI is over 10 Crores, additional INR 10 lakhs will be given | @7% of term loan amount disbursed with the maximum amount of Rs. 35 lakhs per annum for 7 years |
| Category 2 | @20% of eligible Term Loan Amount subject to a maximum amount of Rs. 30 lakhs; If the Eligible FCI is over 10 Crores, additional INR 7.5 lakhs will be given | @6% of term loan amount disbursed with the maximum amount of Rs. 30 lakhs per annum for 6 years |
| Category 3 (including Municipal Corporation areas) | @10% of eligible Term Loan Amount subject to a maximum amount of Rs. 10 lakhs; If the Eligible FCI is over 10 Crores, additional INR 5 lakhs will be given | @5% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs per annum for 5 years |
| Policy Feature | National Patent | International Patent |
|---|---|---|
| Financial Support | Partial reimbursement | Partial reimbursement |
| Reimbursement Percentage | Up to 75% of costs/expenditure incurred | Up to 75% of costs/expenditure incurred |
| Maximum Reimbursement Limit | INR 25 lakhs (total for all patents) | INR 25 lakhs (total for all patents) |
| Maximum Attorney Fee | INR 50,000 | INR 2,00,000 |
| Eligibility | Includes Process Patents | Includes Process Patents |
| Support Type | Eligibility/Details | Amount/Support |
|---|---|---|
| Sustenance Allowance | Startups in general | INR 20,000 per month for one year |
| Startups with at least 1 woman co-founder | INR 25,000 per month for one year | |
| Seed Support | For product development, marketing, and professional assistance | Up to INR 30 lakhs |
| Startups with significant social impact | Additional grant up to INR 10 lakhs | |
| Soft Skill Assistance | For training in soft skills | Reimbursement up to INR 1 lakh |
| Pre-Series A Funding | Under Gujarat Venture Finance Limited (GVFL) for mid-level funding | Between INR 50 lakhs to INR 3 crore |
| Acceleration Programs | For attending or organizing acceleration programs | Support up to INR 3 lakhs |
| Promotional Events | Support for organizing workshops, seminars, etc. | Up to 75% of expenses, max INR 5 lakhs |
| For events specific to women entrepreneurship | Up to 90% of expenses, max INR 5 lakhs | |
| Nodal Institutes and Mentoring | Fiscal support to Nodal Institutes mentoring approved startups | INR 1 lakh per startup, max INR 15 lakhs per annum |
| Taluka Category | Interest Subsidy |
|---|---|
| Category 1 | @7% of term loan amount disbursed with the maximum amount of Rs. 35 lakhs per annum for 7 years |
| Category 2 | @6% of term loan amount disbursed with the maximum amount of Rs. 30 lakhs per annum for 6 years |
| Category 3 (including Municipal Corporation areas) | @5% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs per annum for 5 years |
| Taluka Category | General Sectors | Thrust Sectors |
|---|---|---|
| Category 1 | 10% of eligible FCI (excluding land) | 12% of FCI eligible (excluding land) |
| Category 2 | 8% of eligible FCI (excluding land) | 10% of FCI eligible (excluding land) |
| Category 3 | 4% of eligible FCI (excluding land) | 6% of FCI eligible (excluding land) |
The policy will support in setting up new infrastructure or upgradation of existing infrastructure like roads, warehousing facilities, fire stations, underground utilities etc. at 80% of the Project Cost upto INR 25 crore.