Scheme for Financial Assistance to Industrial Parks

The Government of Gujarat in collaboration with Industries and Mines Department had offered various incentive schemes and subsidies to the entrepreneurs for development and upgradation of manufacturing enterprises. As a part of industrial promotions, the scheme for Industrial Parks was proposed to provide financial assistance for setting up new Industrial Park in the state of Gujarat. This article explains about the Scheme for Financial Assistance to Industrial Parks in detail.

Features of the Scheme

The features of the scheme are given here:

Under this scheme, the assistance will be given to the private industrial park developer for developing industrial units within the area of the industrial park.
All eligible institution/industrial park/co-developers notified under this scheme can apply to Industries Commissionerate (IC) office to get assistance for developing an industrial park.

Overview of Industrial Park

An Industrial Park is an estate which is developed in a minimum area of 20 Hectares for the establishment of a minimum of 10 industrial units to manufacture any product or service. The industrial park should have necessary infrastructure facilities such as developed plot, internal roads, sewage, power distribution, water distribution facilities, communication facilities, a hostel for industrial workers and any other facilities required for the development of Industrial units.

Institution

Institution means any enterprise or Industries Association registered under the Partnership Act, Societies Act, Companies Act, for setting up of Industrial Park. Such an institution will be eligible to avail assistance for developing an industrial park with co-developer.

Co-Developer

Co-developer is an individual/legal entity intends to participate in the development of Industrial park with the required fund/technical skill/expertise in the creation of an infrastructure of Industrial Park.

Eligibility Criteria for Industrial Parks

The assistance will be provided if the industrial parks meet with the following conditions:

Industrial Park should have at least ten industrial units in the area of 20 hectares.
The Industrial Park should possess minimum infrastructure facilities like road, electricity, water and sewage and effluent treatment facilities.
Industrial Park should use only fifty per cent of the total area allocated for the industrial units.
The Industrial Park should follow the guideline of the nearest urban area development authority GDCR for common facilities, like road, common plot etc.
The minimum percentage of the area allocated for industrial use should not exceed 65% of the total area.
The width of the main entry road should not be less than 24 meters.
The industrial parks should provide fire prevention facilities and appropriate access for use.
The industrial parks should provide 5% of the total area for Industrial workers, and the other 5% of the total area should be reserved for an office building.

Quantum of Assistance

The new Industrial Park will be provided with an incentive of 25%, which does not exceed Rs. 30 crores on all eligible fixed capital investment in building and infrastructure facilities (except land cost). Also, the industrial park will be provided with the financial assistance of 25% on the value of Hostel/Dormitory Housing for domicile workers with a maximum ceiling of Rs. 20 crores. Note: In such cases, the prior approval of the committee for hostel/Dormitory housing for domiciled workers of the project has to be obtained. The developer of the Industrial Park will be eligible for 100% reimbursement on stamp duty paid on the purchase of land as required for the approved project by SLEC, and Individual unit is eligible for reimbursement at the rate of 50% of stamp duty paid by them on purchase of plot in the industrial park.

Documents Required

The following are the documents to be furnished at the time of applying:

In-principle approval of the proposed Park

Application in the prescribed form
Constitution of Applicant Company or Institution.
Project Report.
Annual Report of the promoter Company or Institution.
Copy of Acknowledgement under Industrial Park Scheme
Copy of Industrial Park layout plan.
Village Map of the proposed land representing survey numbers.
Registration of Industry association, industrial house, Institution under Private sector undertaking/Cooperative undertaking/Societies Act/Partnership Act/Companies Act/Trust Act has to be enclosed.
Details of Co-developer if industrial Park is more than 100 hectares.
Any other documents as specified in application form and checklist.

For Final approval

Expenditure statements with C.A. Certificate.
Copy of approved Civil Engineer Certificate.
GPCB, MoEF Clearance, if required.
Copy of Third Party Quality Assurance (TPQA) Certificate
Copy of Project Completion Certificate (PCC).
DIC Team report as appointed by IC.

Application Procedure

The application procedure to obtain assistance under the scheme for financial assistance to Industrial Parks is explained in detail below:

Any individual, firm or public/private limited company who wants to set up an industrial park under Gujarat Industrial Policy should submit online application through Investor facilitation portal.
After filling online application along with the printout of the application form and documents as mentioned has to be submitted to Industries Commissioner (IC) office within 7 working days or else the application will be found cancelled.
After getting online application and documents, then the branch will enquire the application and inform the applicant if any documents or details are missing within 15 days of receipt of application.
If the application is selected, the applicant will be asked to make a presentation before a committee.
The Committee can ask for further clarification and amendments in the plan or project. On compliance of committee’s remarks, the committee will recommend it to State Level Empowered Committee (SLEC) for approval of the project.
SLEC will verify the project and if satisfied, will approve the project, subject to the terms and conditions of the policy.

Note: The private industrial park developer who does not want to avail any assistance from the government, will have to obtain a certificate from Industries Commissioner before the commencement of development or work in the purchased, occupied, procured land. The application form for financial assistance to industrial parks can be downloaded here. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/06/pig-1-1.pdf" title="pig 1 (1)"]