Scheme for Financial Assistance to Integrated Logistics Facilities: Exemption of Electricity Duty

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 "Exemption of Electricity Duty" is aimed at promoting industrial growth and economic development. Under this scheme, newly established units or projects can avail of electricity duty exemptions after the commencement of their operations.

Exclusions
• If any Unit/Project is availing incentive under any other State Government scheme, it will not be eligible under this scheme.

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 Expenditure
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
• Financial Assistance: Unit/Project is eligible for exemption of Electricity Duty from the date of Commencement of Operation.

Eligibility Criteria
1. - The subsidy is applicable only to new units/projects.
2. - Developer has to maintain and operate the logistic facilities for at least minimum period of 5 years.

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 "Exemption of Electricity Duty" component?
A: The "Exemption of Electricity Duty" aims to support new units or projects by reducing their operational costs through the waiver of electricity duty.

Q: Who is eligible to apply for the exemption?
A: Only new units or projects that have commenced operations are eligible to apply for the exemption.

Q: When does the exemption become effective for eligible units?
A: The exemption becomes effective from the date of commencement of operations of the new unit or project.

Q: Can an existing business apply for the exemption?
A: No, existing businesses are not eligible to apply for the Exemption of Electricity Duty.

Q: What happens if a project has not yet commenced operations?
A: Projects that have not commenced operations are not eligible to apply for the exemption until operations begin.

Q: How does one obtain an Eligibility Certificate for the exemption?
A: The Eligibility Certificate is issued after the concerned authorities verify the required documents and confirm the commencement of operations.

Q: Can the exemption benefit be transferred to another project or business?
A: No, the exemption benefit is non-transferable and is specific to the approved project or unit.

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.