Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries: Assistance of Interest Subsidy

Description
The "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state& 39;s dynamic mega-industry sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2032, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat." The component "Assistance of Interest Subsidy" offers a fixed quantum of interest subsidy for new industrial setups or expansion projects, facilitating industrial investments and encouraging economic development.

Definitions
Mega Industrial Unit
(Source: https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20Mega%20Industries.pdf)

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

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

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

Benefits
• > **Substantial Interest Reduction:**
• **Interest Subsidy:** @7% on the term loan. - **Capped Amount:** A maximum of 1.2% of eligible fixed capital investment per annum for 10 years.

Eligibility Criteria
1. The mega industry must operate as a manufacturing unit.
2. The unit must have a minimum investment of INR 2,500 crore in plant and machinery.
3. The unit must provide direct employment to at least 2,500 persons.
4. The unit must belong to one of the thrust sectors as defined in the [Guidelines](https://cmogujarat.gov.in/sites/default/files/2023-01/AatmaNirbhar-Gujarat_Industrial-Policy_0.pdf) (Refer Page No. 9). 1. New industrial units or expansion projects are eligible.
5. Units must avail of term loans for fixed capital investment from recognized financial institutions.
6. The unit must bear at least 2% interest on term loans, even if availing of other subsidies.
7. Units must ensure regular repayment of loan installments.

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.
• IEM Part – B /IL /LOP of Industrial Undertaking.
• To be submitted in first claim only.
• Valid CCA obtained from GPCB (if applicable).
• First Sale Bill.
• To be submitted in first claim only.
• Purchase bill, Sale bill, and 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.
• No due Certificate from Previous Bank (in case of Take-over of Term Loan).
• Bank Sanction Letter from Bank taken over the Term Loan (If Applicable).
• 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).
• Copy of Pan Card (To be submitted in first claim only).
• Copy of Cancelled Cheque (To be submitted in first claim only).

Frequently Asked Questions
Q: What is the "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries"?
A: The "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries" is a state initiative designed to support and strengthen the Mega Industry 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, 2032, covering a period of 10 years.

Q: What are the objectives of the scheme?
A: The scheme aims to boost Mega 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: Mega 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 purpose of the "Assistance of Interest Subsidy" component?
A: The component aims to reduce the financial burden on industrial units by subsidizing a portion of the interest on term loans for fixed capital investments.

Q: Who is eligible for this scheme?
A: New industrial units and expansion projects availing term loans for fixed capital investment are eligible.

Q: What is the interest subsidy rate?
A: The interest subsidy is @7%, subject to a maximum of 1.2% of the eligible fixed capital investment per annum.

Q: How long is the subsidy provided?
A: The subsidy is provided for up to 10 years.

Q: What is the minimum investment required to qualify for the scheme?
A: The manufacturing unit must have an investment of at least INR 2,500 crore in plant and machinery.

Q: How many jobs must a unit create to be eligible?
A: The unit must directly employ at least 2,500 persons to qualify for the subsidy.

Q: What sectors are eligible under the scheme?
A: The unit must belong to one of the thrust sectors defined in the state's industrial policy.

Q: Can units apply for the subsidy before commercial production starts?
A: No, the subsidy is disbursed only after the commencement of commercial production.