Scheme for Financial Assistance to Integrated Logistics Facilities: Interest 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 "Interest Subsidy" is designed to assist developers by reducing their interest burden on term loans. It is applicable only to new units or projects, enabling developers to improve their financial stability during the project& 39;s development phase.

Exclusions
• Periods with default in principal repayment (90 days or more) are not eligible, even if interest is repaid during this time.

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
• **Coverage of Moratorium Period:** Interest repayment during the moratorium period is also eligible for subsidy. - **Assistance on Actual Disbursement:** The subsidy is calculated based on the actual disbursed amount of the sanctioned term loan. - **Encourages Timely Repayment:** Incentivizes developers to maintain regular repayment schedules to avoid being declared defaulters.

Eligibility Criteria
1. The subsidy is applicable only to new units/projects.
2. The term loan’s first disbursement date must fall within the scheme’s operative period.
3. Developers must not be declared defaulters as per RBI guidelines.
4. Repayment against the principal must be timely.

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 "Interest Subsidy" component?
A: The "Interest Subsidy" component is designed to assist developers by reducing their interest burden on term loans. It is applicable only to new units or projects, enabling developers to improve their financial stability during the project's development phase.

Q: Who qualifies for the "Interest Subsidy"?
A: Developers of new units or projects are eligible if the first disbursement of their term loan falls within the operative period of the scheme.

Q: Can an existing project apply for the Interest Subsidy?
A: No, only new units or projects are eligible for the Interest Subsidy scheme.

Q: What happens if a developer is declared a defaulter?
A: If a developer is declared a defaulter by a financial institution, as per RBI guidelines they are ineligible for the Interest Subsidy.

Q: Does the scheme cover interest payments during the moratorium period?
A: Yes, interest payments made during the moratorium period are eligible for the subsidy.

Q: How is the subsidy amount determined?
A: The subsidy amount is calculated based on the actual amount disbursed against the sanctioned term loan.

Q: Can a developer choose the period for receiving the subsidy?
A: Yes, a developer can select either the period starting from the Date of First Disbursement of the Term Loan or the Date of Commencement of Operation of the project.

Q: What happens if the principal repayment is overdue for more than 90 days?
A: If the principal repayment is delayed for over 90 days, that duration is not eligible for the subsidy, even if interest payments are made during that period.

Q: Where should developers submit their claim for the subsidy?
A: Developers must submit their subsidy claims to the IC office along with the required documents.

Q: Is the subsidy available for multiple term loans?
A: The subsidy applies only to the sanctioned term loan for the specific new unit or project.

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.