Scheme for Financial Assistance to Integrated Logistics Facilities: Capital Subsidy

Description
The "Scheme for Financial Assistance to Integrated Logistics Facilities" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Integrated Logistics and Logistics Park Policy. Effective from August 2nd, 2021 to August 1st, 2026, this initiative aims to provide financial assistance to the private developer for developing Logistics Facilities and Logistics Park with all required infrastructure and logistic services. The component "Capital Subsidy" is designed to support new projects or units by providing financial assistance for eligible fixed capital investments. The subsidy is aimed at enhancing industrial development and incentivizing investment in infrastructure and construction for qualifying projects.

Exclusions
• Existing units/projects are not eligible under this scheme-component.

Definitions
Eligible Term Loan
(Source: https://ic.gujarat.gov.in/documents/commondoc/2024/Revised_Gui_eline_for_the_%20Scheme_for_Financial_Assistance_to_Integrated_Logistics_Facilities.pdf)

Date of Commencement of Operations
(Source: https://ic.gujarat.gov.in/documents/commondoc/2024/Revised_Gui_eline_for_the_%20Scheme_for_Financial_Assistance_to_Integrated_Logistics_Facilities.pdf)

Ineligible Expenditures
Following Ineligible Expenditure will not be eligible for any assistance:
Expenditures incurred towards the purchase of land and land development
Goodwill fees, Commissioning fees, Royalty, Preliminary & Pre-operative Expenses
Interest Capitalized, Technical fees/ Consultant fees, Working Capital
Any amount not specifically expressed as eligible investment or any other expenditure specified as non-eligible expenditure by the Sanctioning Authority/SLEC
(Source: https://ic.gujarat.gov.in/documents/commondoc/2024/Revised_Gui_eline_for_the_%20Scheme_for_Financial_Assistance_to_Integrated_Logistics_Facilities.pdf)

Benefits
• **Phase-Wise Disbursement:** Assistance is disbursed in four installments- 25%, 50%, 75%, and 100% of the sanctioned project cost (excluding land costs). - **Final Adjustment on Project Completion:** 15% of eligible assistance is withheld and disbursed only after the project is completed.

Eligibility Criteria
1. Only new units or projects are eligible for this subsidy.
2. The subsidy applies to costs related to construction and infrastructure (excluding land cost).
3. The project must adhere to SOR norms of the government or its undertaking.
4. The claim must be submitted in a phase-wise manner corresponding to actual expenditures.
5. Developers must obtain all applicable environmental and statutory clearances.
6. Basic facilities such as toilets and rest areas for transport vehicle drivers must be provided.
7. The developer must operate and maintain the logistics facilities for a minimum of five years.
8. <br>
9. > **Note****:**
10. If land is leased or rented, a registered lease/rental deed for a minimum of 10 years between the developer and landowner is mandatory.
11. Warehouse facilities must not be used for captive purposes by the developer; otherwise, they will be ineligible for assistance.
12. Logistics facilities cannot be sold or transferred to another entity for at least five years from the date of the sanction letter or the project's commissioning, whichever is later. Facilities must be leased or rented to remain eligible for assistance.

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.

Step 2: Step-1: Submit the application in the prescribed form along with the required documents to the Industries Commissionerate.
Step-2: The Industries Commissionerate will review and request missing details, if any, within 15 days.
Step-3: The applicat…
Offline

Step-1: Submit the application in the prescribed form along with the required documents to the Industries Commissionerate.
Step-2: The Industries Commissionerate will review and request missing details, if any, within 15 days.
Step-3: The application will then be forwarded to the GM of the District Industries Centre (DIC) for a site visit and inspection report.
Step-4: Based on the report, the Industries Commissionerate may issue a Registration Certificate.
Step-1: After registration and approval of the project layout plan, submit the application in the prescribed format for sanction with a detailed project report and required documents to the Industries Commissionerate.
Step-2: The Industries Commissionerate will scrutinize and request missing details within 15 days.
Step-3: Applicants must present their project to a Screening Committee chaired by the Industries Commissioner.
Step-4: After addressing committee remarks, the application is reviewed by the Sanctioning Authority for approval based on scheme guidelines.

Required Documents
• Copy of Constitution of Developer Company/Firm.
• (Legal entity registered as Proprietorship, Limited Liability Partnership, Co-operative Society, Companies registered under Companies Act, Trust.), OR
• Copy of GST Registration/Bank Certificate, in case of Proprietorship Firm.
• Copy of PAN Card of Developer Company/Firm.
• Authority Letter/Board Resolution for signing on behalf of Developer Company/Firm.
• Village Map of Land in which Project to be developed.
• (With Highlighted Survey/Block Nos.)
• VF-7 (Gaam Namuna No. 7) of Survey No. for Land in which Project to be developed.
• Copy of Index-2 for Land.
• (In case of Land is in the Name of Developer.), OR
• Copy of Notarized Lease Deed/Rent Deed/Agreement with owners of Land.
• (In case of Land is on Lease/Rental basis.)
• Copy of Proof for Ownership of Building.
• (In case of New and Unused Building is acquired by Developer.), OR
• Copy of Notarized Lease Deed/Rent Deed/Agreement with owners of Building.
• (In case Building is on Lease/Rental basis/GIDC Shed.)
• Copy of Sanction Letter for Term Loan.
• Copy of Term Loan Account Statement/Bank Certificate for 1st Disbursement of Term Loan.
• Lay-out of the Project.
• (Certified by Approved Civil Engineer/Architect.)
• Project Report.
• Notarized Affidavit.
• Duly attested Annexure for Land Details in Prescribed Format.
• Copy of Constitution of Developer Company/Firm (Legal entity registered as Proprietorship, Limited Liability Partnership, Co-operative Society, Companies registered under Companies Act, Trust), OR
• Copy of GST Registration/Bank Certificate, in case of Proprietorship Firm.
• Copy of PAN Card of Developer Company/Firm.
• Authority Letter/Board Resolution for signing on behalf of Developer Company/Firm.
• Village Map of Land in which Project to be developed (with Highlighted Survey/Block Nos.).
• Copy of Index-2 of Survey Nos. for Land purchased for the Project (In case of Land is in the ownership of the Developer).
• Copy of Registered Lease Deed/Rent Deed/Agreement with owners of Land, attached with Copy of Index-2 of the land owners/lessor/renter (In case of Land is on Lease/Rental basis).
• In case of Govt. land, Copy of Order/Allotment letter from concerned District Collector/relevant Govt. authority for the land allotted/transferred to developer for the Project.
• Copy of Proof for Ownership of Building (In case of New and Unused Building is acquired by Developer).
• Copy of Registered Lease Deed/Rent Deed/Agreement with owners of Building (In case of Building is on Lease/Rental basis/GIDC Shed).
• Copy of Permission/Consent by Gujarat Maritime Board (GMB) to construct Jetty on BOT (Build, Operate and Transfer) basis (In case of Non-Captive (Private) Jetties).
• Approval/Sanction Letter for terminal notified under Private Freight Terminal (PFT) Policy (In case of Private Freight Terminal).
• Copy of Sanction Letter for Term Loan (In case of Term Loan is sanctioned and Developer wants to opt for Interest Subsidy).
• Copy of Term Loan Account Statement/Bank Certificate for 1st Disbursement of Term Loan (If amount of Term Loan is disbursed).
• Approved Lay-out Plan and/or Buildings Plan from Concerned Govt. Authority for the Project.
• Estimation of Component wise Project Cost (as per Application Form) as per Prevailing SOR of concern Govt. Department or its undertakings.
• Detailed Project Report (Containing Background of Developer, Location of the Project, Facilities to be provided, Features and Scope of Logistics Facilities, Types of units/beneficiaries to be benefited, etc.).
• CA certified Net Worth Certificate of the Developer Company/Firm/Promoters.
• If you have applied to State Government for incentives/assistance under any other scheme of GOG for the same project, then provide Details (Details of Scheme, Registration, Sanction, Approval, etc. received under that scheme; Quantum of Assistance sanctioned, disbursed, if any).
• If you have applied to Central Government for incentives/assistance under any scheme of GOI for the same project, then provide Details (Details of Scheme, Registration, Sanction, Approval, etc. received under that scheme; Quantum of Assistance sanctioned, disbursed, if any).
• Notarized Affidavit.

Frequently Asked Questions
Q: What is the objective of the "Scheme for Financial Assistance to Integrated Logistics Facilities"?
A: The "Scheme for Financial Assistance to Integrated Logistics Facilities" under the Gujarat Integrated Logistics and Logistics Park Policy, provides financial support to private developers for creating logistics facilities and parks with the necessary infrastructure and services.

Q: What is the purpose of the "Capital Subsidy" component?
A: The "Capital Subsidy" component aims to provide financial assistance to new units or projects to support industrial growth and development.

Q: Who is eligible for the subsidy under this scheme?
A: Only new units or projects are eligible for the subsidy, provided they meet all the prescribed criteria.

Q: What costs are considered eligible for the subsidy?
A: The subsidy is calculated based on eligible fixed capital investments, including construction and infrastructure costs, but excluding land costs.

Q: How is the subsidy amount disbursed?
A: The subsidy is disbursed in four installments based on actual expenditures, corresponding to 25%, 50%, 75%, and 100% of the sanctioned project cost.

Q: What percentage of the subsidy is retained until project completion?
A: 15% of the eligible subsidy amount is retained and disbursed only after the project is fully completed.

Q: Can an existing business unit apply for this subsidy?
A: No, the subsidy is exclusively available for new units or projects and does not apply to existing or operational businesses.

Q: How should the subsidy claim be submitted?
A: The claim must be submitted in a phase-wise manner corresponding to the progress of the project and the actual expenditure incurred.

Q: What is the Schedule of Rates (SOR)?
A: The Schedule of Rates (SOR) is a government-prescribed framework that outlines standardized costs for construction and infrastructure activities.

Q: What happens after submitting the registration application?
A: The Industries Commissionerate will scrutinize the application, request missing details within 15 days, and forward it to the concerned District Industries Centre for inspection.

Q: How is the inspection carried out?
A: The General Manager of the District Industries Centre conducts a site visit and prepares an inspection report.

Q: Who issues the Registration Certificate?
A: The Industries Commissionerate issues the Registration Certificate after reviewing the inspection report and adhering to the provisions of the GR and guidelines.