Chief Minister Bhupendra Patel has responded to Prime Minister Narendra Modi’s call of ‘Aatmanirbhar Bharat’ on 75 years of India’s independence. The state is on a mission to fulfil the mantra of ‘Aatmanirbhar Gujarat to Aatmanirbhar Bharat’. To carry forward the step, CM Patel announced “The Aatmanirbhar Gujarat Schemes for Assistance to Industries’ in the presence of Minister of State for Industries Mr Jagdish Vishwakarma.
PM Narendra Modi hopes to achieve Aatmanirbhar Bharat by 2047, the year India celebrates its 100th anniversary of independence. Under his leadership, India has risen as the Fastest Growing Economy on the global map. At this time, the scheme aims to attract industries and investors and thereby create large-scale employment opportunities.
The CM said, “Gujarat is a land of entrepreneurs. The state is India’s manufacturing hub. It is prepared to lead India in fulfilling the Prime Minister’s call for “Aatmanirbhar Bharat”. He also stated that the scheme will be useful in providing special assistance to industries in order for them to become part of global supply chains.
The scheme will go on to encourage industries to transition toward green manufacturing practices and adopt decarbonization initiatives to remain globally competitive and also align with the “Panchamrut” principles laid down by the Hon’ble Prime Minister of India at the COP 26 summit.
The “Aatmanirbhar Gujarat Schemes for incentives to industries” shall go on to encourage budding entrepreneurs to fulfil their entrepreneurial ambitions not only by de-risking their investments by way of increased incentives, but also, by encouraging youth to innovate and become job creators, thereby creating large-scale quality job opportunities. The employment-related incentives for MSMEs, large and mega enterprises will also aid in the formalisation of Gujarat’s industrial workforce. It will also create enhanced opportunities for the development of new manufacturing sectors and their ancillary ecosystems in Gujarat, which will set global examples in manufacturing.
On this occasion, Minister of State for Industries Jagdish Vishwakarma said, “33 lakh MSMEs of Gujarat have been key contributors to Gujarat’s inclusive growth and generation of sustainable employment opportunities, particularly in semi-urban and rural India. Further, the state has established itself as a leader in various key sectors of the economy and has become the preferred choice of investments for investors.
Chief Principal Secretary to the Chief Minister K.Kailashnathan, Chief Secretary Pankaj Kumar, Additional Chief Secretary of Industries Department Raj Kumar, Industries Commissioner Dr. Rahul Gupta and senior officers were present during the launch of this scheme.
Incentives to MSMEs under ‘The Aatmanirbhar Gujarat Schemes for Assistance to Industries’ are as under:
- Net SGST reimbursement to MSMEs upto 75% of fixed capital investment over 10 years
- Capital Subsidy upto INR 35 lakhs for Micro Industries
- Interest subsidy to MSMEs upto INR 35 lakhs per annum for upto 7 years
- EPF reimbursement for 10 years
- Incremental incentives to women entrepreneurs, young entrepreneurs, startups and differently abled entrepreneurs.
- Electricity Duty exemption for 5 years
Aatmanirbhar Gujarat Scheme for Assistance to Large Industries
While MSMEs are important for the development of a resilient industrial ecosystem, it is also to encourage large scale investments across sectors. Such investments have had a multiplier effect on the state and national economy as well as employment generation. These large-scale investments have also created substantial opportunities for MSMEs in the state for providing forward and backward linkages. With these goals, the Government of Gujarat has also launched the “Aatmanirbhar Gujarat Scheme for assistance to Large Industries”.
Incentives to large industries under the ‘The Aatmanirbhar Gujarat Scheme for Assistance to Large Industries’ are as under:
- Thrust sectors: Keeping in view the global trends and future of manufacturing, 9 sectors (with 22 sub-sectors) have been recognized as Thrust manufacturing sectors in line with the vision of an Aatmanirbhar Bharat.
- Interest subsidy to Large enterprises up to 12% of Fixed Capital Investment
- EPF reimbursement for 10 years
- Net SGST reimbursement to Large industries upto 75% of Fixed Capital Investment over 10 years
- Incremental support to thrust manufacturing sectors
- Electricity Duty exemption for 5 years
‘Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries’:
In order to be globally competitive, it is important to set up mega scale manufacturing enterprises and build on economies of scale. With this view, the Government of Gujarat has launched the Aatmanirbhar Gujarat Scheme for assistance to Mega Industries.
Incentives to Mega industries under the ‘The Aatmanirbhar Gujarat Schemes for Assistance to Mega Industries’ are as under:
- Thrust sectors: Keeping in view the global trends and future of manufacturing, 10 sectors (with 23 sub sectors) have been recognized as Thrust manufacturing sectors in line with the vision of an Aatmanirbhar Bharat.
- Mega Industrial Units in these thrust sectors with investment above 2500 Crore and employing more than 2500 persons shall be given incentives under this scheme.
- Interest subsidy to Mega enterprises upto 12% of Fixed Capital Investment
- EPF reimbursement for 10 years
- Net SGST reimbursement to Mega industries upto 18% of Fixed Capital Investment over 20 years
- Reimbursement of SGST on Capital Goods: 100% of Input SGST paid on capital goods shall be reimbursed over 20 years
- Reimbursement of Stamp Duty and registration fees: 100% reimbursement of stamp duty and registration charges paid to Government of Gujarat for purchase and/or lease of land meant for the project
Electricity Duty exemption for 5 years: MOS for Industries expressed confidence that Aatmanirbhar Gujarat schemes for assistance to industries shall transform Gujarat’s manufacturing landscape in the coming years. The scheme is expected to attract an investment of ~INR 12.5 lakh crores generating employment opportunities for over 15 lakh people in Gujarat.
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