Gujarat Scheme for Assistance to Projects

The Government Gujarat has launched the Scheme for assistance to projects to promote industries, particularly in the SME Sector. This scheme intends to support Small and medium-sized enterprises (SME) towards the implementation of innovative technology-based projects. In this article, we have a look at the procedure for availing assistance under Mega/innovative projects.

Focus Sectors

The following are the sectors that will be supported under the Mega/Innovative project scheme:

Auto and auto components
Shipbuilding and ship repair
Semiconductor fabrication
Industries having Nanotechnology applications
Maintenance, repair and overhaul (MRO) hub for aircraft.

Core Infrastructure Sectors

The categories of projects covered under the core infrastructure Sectors are given below:

Metro Rail Line
Logistic parks
Railway Line
Express Ways
Fast Passenger Trains
High-Speed Trains

Note: The Commercial, residential and townships projects are not covered under this category.

Eligibility Criteria

The eligibility criteria to obtain the benefits under the Scheme for Assistance to Mega/Innovative projects are explained in detail below:

The enterprise having Entrepreneurs Memorandum (EM Part-II)/Udyog Aadhar as a manufacturer under the MSME Development Act, 2006 with respective Director of Industries Commerce (DIC) as manufacturing enterprise is eligible for this scheme
The technology must be introduced in the state of Gujarat.
The project should envisage the use of high-end-of art technology.

Eligibility for Innovative Project

Any project with an investment of at least Rs.500 crore is eligible to participate under the scheme.
Also, the project which provides direct employment opportunities for at least 1000 persons in the state of Gujarat can apply for the assistance.

Eligibility for Mega Project

The project with an investment of at least Rs.1000 crore and which provide direct employment opportunities for at least 2000 persons in the state of Gujarat is eligible.
Also, the project developed under the crore infrastructure sectors with an investment of at least Rs.2000 crore are eligible for the scheme.

Expenditure Covered under the Project Cost

The activities or expense covered under the project cost area as follows:

Construction, augmentation and modification of work shed are expected for the project implementation.
Costs of technology and required substantial technology development for commercialization.
The cost of fabrication, design and procurement of equipment, plants and machinery is needed.
Testing and quality control equipment obtained for the evaluation of standards or quality of the product, a process is required.
The utilities and services are necessary for commercial-scale production
Cost of raw materials for licensing of the plant towards evaluation and initial marketing is needed.
Field trials towards limited market development are required.
The price of manpower expected for the project implementation period to be provided.

Operative Period

The assistance for the mega/innovative project will be applicable for five years. This scheme commences from 01 January 2015 and ceases by 31 December 2020.

Assistance to Mega/Innovative Projects

The State Government will decide the financial aid for the Mega/Innovative projects will make a dispensation for the use of land and tenure conversion for Mega or innovative projects.
The Gujarat Industrial Development Corporation (GIDC) would identify land for setting up of MSME ancillary units, in case of any mega/innovative projects require the support of ancillary units.

Selection of Beneficiaries

The following selection committee will select the beneficiaries under the mega or innovative project scheme:

S.No	Selection Committee
1.	Chief Secretary	Chairman
2.	Principal Secretary, Finance Department	Member
3.	Principal Secretary, Revenue Department	Member
4.	Principal Secretary, Industries and Mines Department	Member
5.	Principal Secretary, Ports and Transport Department	Member
6.	Principal Secretary, Energy and Petrochemicals Department	Member
7.	Principal Secretary, Science and Technology Department	Member
8.	V.C. & M.D., GIDC	Member
9.	Industries Commissioner	Member Secretary
10.	Principal Secretary, Roads and Buildings Department	Member
11.	C.E.O., Gujarat Infrastructure Development Board (GIDB)	Member

Note:

The SLAC will recommend the application for assistance to Government and on approval of the application will also monitor the progress of the execution of the project for which grant is sanctioned.
The Committee will also prescribe the terms and conditions for execution of the project and the decision made by the committee regarding the application will be final.
The projects under the Core Infrastructure Sector will be handled by the GIDB, and such applications need not be submitted to the SLAC or the Government.

Documents Required

The below following documents are to be submitted while applying for the subsidy.

Copy of prescribed application form
Copy of IEM having a specific location mentioned
Detailed project report
Note and justification on each criterion as mentioned
Type of financial assistance required and justification
Board resolution regarding the acceptance of terms and condition of Government resolution of Mega or Innovative project
Board resolution for authorized signatory who has signed the application form

Application Procedure for the Scheme

The applicant will have to follow the given procedure to apply for the Scheme for Assistance to Mega/Innovative Project: Step 1: The applicant is required to make an application to the Industries Commissionerate for availing the assistance under the scheme for a mega or innovative project in a prescribed format. Step 2: The Industries Commissionerate will verify the duly filled application form and then will be forwarded to the State Level Approval Committee (SLAC). Step 3: The application for Megaprojects in the core infrastructure sectors has to be made with the Gujarat Infrastructure Development Board ( GIDB), and the concerned authority of GIDBI will verify those. Step 4: After getting approval from the SLAC, the Industries Commissionerate (IC) will issue a registration certificate to the applicant. Step 5: The project registration has to be approved by the SLAC before the commencement of the project. And the project which has not been approved before the commencement will not be eligible for assistance under the scheme. Step 6: The State Government will decide to fund through critical infrastructure scheme for the mega or innovative projects on the recommendations of the SLAC. Step 7: If the project has been already subsidized under any other scheme of the State or Central Government, the assistance under this scheme will be considered by the State Government. Step 8: Then, the project owner has to make an application to the Industries Commissioner within 3 months after the issuance of the registration certificate. Step 9: The Industries Commissioner will verify the application, and that will be forwarded to the Government. Step 10: The final decision made by the Government will be conveyed to the Industries Commissioner (IC) and the project owner. The application form for availing assistance under the scheme for Mega/Innovative Project has been reproduced below in the PDF format for the quick reference. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/07/form-1.pdf" title="form 1"]

Other Conditions

The financial assistance for the holistic department will be provided based on the outcomes.

The assistance will be focused on upcoming industrial areas along the Delhi-Mumbai Industrial Corridor (DMIC) and infrastructure needs in identified Special Investment Regions (SIRs) and industrial nodes.
The applicant should prepare a detailed project report, clearly highlighting the overall investment needs, implementation schedule, project cost and financing details including promoter’s equity, the contribution from financial institutions and required component of assistance under this scheme.
The report should indicate the mode of repayment of the loan borrowed from the financial institutions.
The applicant will have to provide all the necessary details, including financial details if required from the State Government and State Level Approval Committee (SLAC).
The detailed Operation and Maintenance (O&M) arrangement and mechanism for third party inspection will have to be build up as an integral part of the project to claim assistance under the scheme.
The project is excepted to generate additional direct employment opportunities to avail the assistance under the scheme.
The project can take measures for local capacity building and gainful employment for the local people in the region. The SLAC will consider this while deciding terms and conditions.
The promoters will arrange the training for the workforce through the establishment of training centres or ITs with the help of State Government technical institutions under the Directorate of Technical Education (DTE) or Directorate of Employment and Training (DET).
The project is required to meet the implementation schedule as submitted by the applicant and as approved by the Government.
The assistance granted to the projects, which fail to satisfy the above-specified conditions at any point of time, then the grant will be recovered as arrears of land revenue from the beneficiary.

Note: In case of megaprojects under Core Infrastructure Sector (CIS), the Gujarat Infrastructure Development Board (GIDB) will require to satisfy the above all conditions.