Gandhinagar, DeshGujarat

Gujarat government has announced the details of incentives to micro-small and medium scale industrial units under its new industrial policy.

Highlights:

-New scheme of cash assistance on term loan of banks: Maximum Rs. 15 lakh in municipal corporation areas and Rs. 25 lakh in other areas.
-Interest aid hike for MSME units: SC, ST, women, differently able and young entrepreneurs to get additional 1% assistance.
-Rs. 50 lakh assistance through equity/loan under Venture capital assistance.
-Rs. 50 lakh assistance for technology acquisition.
-Assistance in credit guarantee to SME fee to set up industrial unit to women, SC, ST, differently able.

Details:

In the run-up to Vibrant Gujarat Summit-2015, Gujarat Chief Minister Mrs. Anandiben Patel today under the recently announced new ‘Industrial Policy-2015’ declared a spate of special incentives for the Micro, Small and Medium Enterprises (MSMEs) in Gujarat.

Gujarat’s Finance and Energy Minister Mr. Saurabhbhai Patel, in reference to the incentives given to MSMEs under the new Industrial Policy-2015, said, the given incentives would expedite the developmental march of the MSMEs. Not only that new industrial policy would easen-up and encourage the setting up of new MSMEs in Gujarat.

In Gujarat, the MSMEs are very prosperous and wealthy. Thus, the new policy would give further impetus to them. Of total MSMEs settled in Gujarat, 176,060 MSME are registered in manufacturing sector with an estimated investment of Rs. 71,105-crores and estimatedly providing employment to nearly 18-lakh people, Mr. Patel said.

Therefore, giving further impetus to such MSMEs would make the Gujarat as the global manufacturing hub and would make the state as the front runner in fulfilling the dream of ‘Make in India’ envisaged by the Prime Minister Mr. Narendra Modi, the minister further added.

Under new Industrial Policy of Government of Gujarat, encouragements given to the MSMEs are as under:

Assistance to the new MSMEs:

-Cash and Interest assistance on Term Loans of the Banks:

As per the new Industrial policy – 2015 at the first time cash assistance on the bank loans will be given by the State Government. For the first time State Government has decided to give cash assistance on loan to the industrialists who are establishing new MSME units. Further, the State Government has increased the interest assistance of MSME units. The assistance norms are as under:

Inside Municipality area:
Cash: 10% of the Loan amount or maximum Rs. 15 Lakh assistance
Interest assistance: 5% every year or Maximum Rs. 25 Lakh for five years

Other area:
Cash:15% of the Loan amount or maximum Rs. 25 Lakh assistance
Interest assistance: 7% every year or Maximum Rs. 30 Lakh for five years

-1% more interest assistance would be given as special encouragement to women, S.C., S.T., Physically challenged and young entrepreneurs.

-Venture Capital Assistance: New entrepreneurs who are full of innovative technology aware could not be able to establish an industry due to non-existence of capital, in that case to establish an innovative project for the new entrepreneurs, under the Capital Assistance Scheme Loan assistance of Rs. 50 Lakh would be given.

-Credit Guarantee to SME: A provision to pay as a guarantee fee to the bank for paying credit guarantee fee in entrepreneur loan of Rs. 1 crore without guarantor to the women and S.C., S.T. and physically challenged entrepreneurs.

Assistance to the existing MSMEs:

-Cash assistance and Interest assistance would be given to the existing industrialists for expanding, diversification and modernization to the industry. The assistance norms are as under:

Inside Municipality area:
Cash:10% of the Loan amount or maximum Rs. 15 Lakh assistance
Interest assistance:5% every year or Maximum Rs. 25 Lakh for five years

Other area:
Cash:15% of the Loan amount or maximum Rs. 25 Lakh assistance
Interest assistance:7% every year or Maximum Rs. 30 Lakh for five years

-50% or up to Rs. 50,000 assistance for installation of Enterprise Resource Planning – ERP software for simplification in daily management of the industry.

-50% or up to Rs. 50,00,000 assistance would be given to the existing industrialists for procurement of new modern technology for power preservation, to decrease pollution and to increase productivity.

-50% or up to Rs. 10 Lakh assistance for the expenditure which was done to procure testing equipments for getting National and International Quality Certificate, while 50% or Rs. 5 Lakh assistance on the expenditure to getting the certificate.

-Audit should be done for the usage of electricity and water. 75% or up to Rs. 50,000 assistance would be given for preparing audit report to encouragement of saving electricity and water and in the case of changes in the equipments of usage, then assistance of the 25% of the price of the equipment or Rs. 20 lakh would be given.

-The units want to get registered in MSME exchange and to earn equity capital would get 20% of the registration expenditure or assistance of Rs. 5 lakh.

-The youth and the industrialists of the state who register their patent for their innovative idea, technology or process, would get assistance up to 75% on the registration expenditure of the patent.

Following is Gujarati copy of announcement:

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