Gujarat Reveals New Industrial Policy With Stream Of Incentives To Attract Companies Looking To Shift Base From China

Chief Minister (CM) Vijay Rupani led Gujarat Government yesterday (8 August) unleashed its new industrial policy aiming to give a further fillip to job creation and manufacturing activity in the state, reports Financial Express.

Aiming to create an "innovation-driven ecosystem", the Government announced a slew of incentives under the new policy to make it more lucrative for companies, both domestic and international.

Announcing the measures CM Rupani said that the companies which want to shift their operations from China and other countries in the wake of coronavirus pandemic were welcome to set up base in Gujarat.

Stressing on the intent to create an Aatmanirbhar Gujarat, CM Rupani announced that industries will be offered Government land on a long-term lease for 50 years at just six per cent of the market prices.

“Gujarat stands first in terms of number of Industrial Entrepreneurship Memorandums, with 51 per cent share of IEMs filed in India in terms of value in 2019,” the chief minister reportedly said. “Our aim is to do better with the launch of the new industrial policy,” he added.

To make it easier for MSMEs to acquire advanced foreign technologies, Government announced that it would support up to 65 per cent of the total cost incurred for the same up to the ceiling of Rs 50 lakh.

The state government also announced that MSMEs will now be eligible for capital subsidy of up to 25 per cent of the eligible loan amount up to Rs 35 lakh. MSMEs will also be encouraged to install solar rooftop projects in their premises with Government offering to procure the generated power at a higher tariff of Rs 2.25 per unit against Rs 1.75.

The new industrial policy has also announced a host of other incentives to make Gujarat the attractive investment and manufacturing destination.