Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector: Assistance of Interest Subsidy

Description
The "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state& 39;s dynamic large-industry sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2027, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat." The component "Assistance of Interest Subsidy" provides financial support to large industrial undertakings by reimbursing a portion of the interest paid on term loans. This subsidy encourages industrial growth, expansion, and diversification by reducing borrowing costs for eligible projects.

Exclusions
• A large industrial undertaking that has received any incentive for the same Gross Fixed Capital Investment (eFCI) under any state government scheme or its agency will not be eligible unless specifically stated.

Definitions
Large Industrial undertaking
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Large%20Industries%20and%20Thrust%20Sector.pdf)

Thrust Sector
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Large%20Industries%20and%20Thrust%20Sector.pdf)

Gross Fixed Capital Investment (GFCI)
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Large%20Industries%20and%20Thrust%20Sector.pdf)

Eligible Fixed Capital Investment (EFCI)
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Large%20Industries%20and%20Thrust%20Sector.pdf)

Date Of Commercial Production (DaCP)
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Large%20Industries%20and%20Thrust%20Sector.pdf)

Benefits
• Note: List of Taluka categories.

Eligibility Criteria
1. A new large industrial undertaking, or an existing one that undertakes expansion and/or diversification, is eligible for this scheme.
2. The large industrial undertaking must have obtained acknowledgment/registration, as the case may be from DPIIT.
3. The industry should commence commercial production during the scheme's operative period.

Application Process
Step 1: Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your r…
Online

Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "Login".
Step-2: Enter the email address and password you used during registration.
Step-3: Click the "Login" button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.

Required Documents
• Bank Certificate for the Claim Period.
• Bank/Financial Institute certified Term Loan Account statement for Claim Period.
• First Sale Bill (To be submitted with first claim only).
• Purchase bill, Sale bill, Electricity Bill for Last month of Claim Period.
• Attendance / Salary Register for the Last Month of Claim Period.
• Employment Statement for the Last Month of the claim Period in Prescribed Format.
• Details of Apprentice (If applicable).
• Valid Insurance Policy for Fixed Assets.
• In case other bank has taken over the remaining term-loan, then sanction letter of bank. (If Applicable).
• No due certificate from previous bank (in case of Take-over of Term Loan).
• Bank/Financial Institute certified Term Loan Account statement for take-over.
• Authority Letter duly certified with Board Resolution, Directors / Partners / Owner. (Authorised Person should be any Director/Partner/at-least Employee of the Company).
• Pan Card.
• Cancelled Cheque.

Frequently Asked Questions
Q: What is the "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector"?
A: The "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector" is a state initiative designed to support and strengthen the Large Industry and Thrust sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.

Q: When is the scheme operative?
A: The scheme is operative from October 5, 2022, to October 4, 2027, covering a period of 5 years.

Q: What are the objectives of the scheme?
A: The scheme aims to boost Large Industry growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.

Q: Who is eligible to benefit from the scheme?
A: Large Industries established and operating within Gujarat are eligible to benefit from the scheme, as per the criteria defined in the policy framework.

Q: What is the "Assistance of Interest Subsidy" component?
A: The "Assistance of Interest Subsidy" component is a financial support initiative designed to reimburse a portion of the interest paid on term loans by large industrial undertakings to encourage industrial growth, expansion, and diversification.

Q: Who is eligible to apply for this subsidy?
A: Large industrial undertakings, including new projects, expansion projects, and diversification projects, are eligible to apply for this subsidy if they meet the specified criteria.

Q: What is the percentage of interest subsidy offered under this scheme?
A: The scheme offers an interest subsidy of 7% on term loans for eligible projects.

Q: What is the maximum duration for which the subsidy is provided?
A: The subsidy is provided for a maximum duration of 10 years, depending on the category of the project.

Q: What is the minimum interest the applicant must bear under this scheme?
A: The applicant must bear a minimum of 2% of the interest levied on the term loan, even if additional subsidies are availed from the Government of India.

Q: Can an undertaking apply for this subsidy while availing subsidies from the Government of India?
A: Yes, an undertaking can apply for this subsidy alongside subsidies from the Government of India, but the total benefit will ensure that at least 2% of the interest is borne by the applicant.

Q: What happens if an industrial undertaking defaults on loan payments?
A: If an undertaking defaults on loan payments, it will not be eligible to receive the interest subsidy for the default period, as determined by RBI guidelines.

Q: Are penalties or additional charges covered under this subsidy?
A: No, penalties or additional charges levied by the financial institution are not covered under this subsidy.

Q: Can an applicant include loans taken from multiple financial institutions?
A: Yes, loans from multiple financial institutions can be included, but the date of the first disbursement of the loan will be considered as the earliest disbursement date.

Q: How is the interest subsidy disbursed to the eligible applicants?
A: The interest subsidy is reimbursed periodically after verification of compliance with the scheme's guidelines and repayment terms.

Q: What are the options for choosing the eligibility start date for the subsidy?
A: Applicants can choose the eligibility start date as either the date of the first loan disbursement or the date of commencement of commercial production.

Q: Are all types of loans eligible for this scheme?
A: No, only term loans used for Eligible Fixed Capital Investment (eFCI) are eligible under this scheme.