Interviews
Gujarat chief minister announces Industrial Policy 2020
08 Aug '20
3 min read
Pic: Shutterstock
Chief minister Vijay Rupani yesterday announced the Gujarat Industrial Policy 2020 that aims to provide nearly ₹40,000 crore as subsidies to industries in the next five years. It will help lease out government land to industrialists, and offer incentives to private industrial parks and units aspiring to relocate because of the pandemic, especially from China.
“Gujarat welcomes all those industrial units who are planning to shift from China and other countries due to the pandemic. We will decide on a case-to-case basis. We have already held four meeting with Japan, three meetings with United States, one each with Germany and UK in this regard,” Rupani said while announcing the policy.
The Gujarat government is yet to take a decision of hosting the biannual Vibrant Gujarat summit in January next year due to the pandemic situation. However, the new policy provides for appointment of dedicated ‘relationship managers’ by the Industrial Extension Bureau (iNDEXTb) that hosts the summit. These managers are meant to be the single point of contacts for investors.
Gujarat Industrial Policy 2015 came to an end on December 31, 2019. The government had extended it up to the release of a new policy or December 31, 2020, whichever is earlier.
“The success of the last policy can be gauged from the fact that Gujarat stands first in terms of number of Industrial Entrepreneurship Memorandum (IEM) filed for 2019. This is 51 per cent of all IEMs filed in India and the proposed investment promised for Gujarat is USD 49 billion,” said Rupani, who also citied high foreign direct investment inflows and low unemployment rates while crediting the old policy.
The new policy also provides an average annual outlay of ₹8,000 crore, meant to provide incentives to industries. Rupani also said Gujarat will become the first state to ‘delink incentives’ from state goods and services tax (SGST) under the new policy, according to Indian media reports.
The new policy, which pushes for ‘Aatmanirbhar Gujarat’, for the first time will provide support by up to 65 per cent of the cost of acquiring foreign patented technologies by micro, small and medium enterprises (MSMEs). However, the maximum support will be up to ₹50 lakh.
For start-ups, the new policy increases the seed support from ₹20 lakh to ₹30 lakh. It also provides increased sustenance allowance and additional fiscal support.
The policy also provides incentives to private developers for setting up private industrial parks in the state. The incentive will be 25 per cent of fixed capital investment up to ₹30 crore. In case of tribal talukas, the policy will support setting up of industrial parks at 50 per cent of fixed capital investment up to ₹30 crore.
“Gujarat welcomes all those industrial units who are planning to shift from China and other countries due to the pandemic. We will decide on a case-to-case basis. We have already held four meeting with Japan, three meetings with United States, one each with Germany and UK in this regard,” Rupani said while announcing the policy.
The Gujarat government is yet to take a decision of hosting the biannual Vibrant Gujarat summit in January next year due to the pandemic situation. However, the new policy provides for appointment of dedicated ‘relationship managers’ by the Industrial Extension Bureau (iNDEXTb) that hosts the summit. These managers are meant to be the single point of contacts for investors.
Gujarat Industrial Policy 2015 came to an end on December 31, 2019. The government had extended it up to the release of a new policy or December 31, 2020, whichever is earlier.
“The success of the last policy can be gauged from the fact that Gujarat stands first in terms of number of Industrial Entrepreneurship Memorandum (IEM) filed for 2019. This is 51 per cent of all IEMs filed in India and the proposed investment promised for Gujarat is USD 49 billion,” said Rupani, who also citied high foreign direct investment inflows and low unemployment rates while crediting the old policy.
The new policy also provides an average annual outlay of ₹8,000 crore, meant to provide incentives to industries. Rupani also said Gujarat will become the first state to ‘delink incentives’ from state goods and services tax (SGST) under the new policy, according to Indian media reports.
The new policy, which pushes for ‘Aatmanirbhar Gujarat’, for the first time will provide support by up to 65 per cent of the cost of acquiring foreign patented technologies by micro, small and medium enterprises (MSMEs). However, the maximum support will be up to ₹50 lakh.
For start-ups, the new policy increases the seed support from ₹20 lakh to ₹30 lakh. It also provides increased sustenance allowance and additional fiscal support.
The policy also provides incentives to private developers for setting up private industrial parks in the state. The incentive will be 25 per cent of fixed capital investment up to ₹30 crore. In case of tribal talukas, the policy will support setting up of industrial parks at 50 per cent of fixed capital investment up to ₹30 crore.
Fibre2Fashion News Desk (DS)
Popular News
Leave your Comments
Editor’s Pick
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
