Incentive to MSMEs-Gujarat Industrial Policy, 2020
MSME definition will be in alignment with the Government of India definition so that a large number of units may take advantage of the provisions under MSME policies.
The policy focuses to promote MSMEs with an aim to make domestic MSMEs globally competitive. The government will support MSMEs in the up-gradation of technologies, adopting globally accepted certifications, and marketing their products internationally.
Capital Investment Subsidy
| Taluka | Subsidy | Additional Subsidy |
| Category I | @ 25 % of Term Loan Amount subject to a maximum amount of Rs. 35 lakhs | If the Eligible FCI is over Rs.10 Cr, additional Rs. 10 lakhs |
| Category II | @ 20 % of Term Loan Amount subject to a maximum amount of Rs. 30 lakhs | If the Eligible FCI is over Rs.10 Cr, additional Rs. 7.5 lakhs |
| Category III and Municipal Corp area | @ 10 % of Term Loan Amount subject to a maximum amount of Rs. 10 lakhs | If the Eligible FCI is over Rs.10 Cr, additional Rs. 5 lakhs |
- Capital Investment Subsidy @ 25% of eligible loan amount with the maximum amount of INR 35 Lakhs
- Additionally, if the eligible fixed capital investment is above INR 10 crores, the unit will be eligible for an additional capital subsidy up to INR 10 lakhs.
Interest Subsidy
- Interest Subsidy of 7% with the maximum amount INR 35 Lakhs p.a. for a period of 7 years
- 1% Additional Subsidy for SC/ST, Physically challenged, and Women entrepreneurs
- 1% Additional Subsidy for Young Entrepreneur below the age of 35 years on the date of sanction of loan.
Service Sector MSMEs
The service sector is a major contributor to the national GDP. Many services are key inputs for facilitating other primary and secondary industries.
Inclusion
MSMEs in the state including those engaged in
- Financial Services
- Healthcare Services
- Audio Visual services
- Construction-related engineering services
- Environmental services etc.
Interest Subsidy
The New Gujarat Industrial Policy 2020 will offer interest subsidy up to 7% up to INR 35 lakhs per annum for a period up to 7 years to these service sector MSMEs in the state including those engaged in
Simultaneously, the state is working on a Service sector policy for large enterprises.
Acquisition of foreign technologies by MSMEs
The government for the first time, will provide support up to 65% of the cost of acquiring foreign patented technologies. (Maximum support upto INR 50 lakh). This will help raise the manufacturing powers of our MSMEs making them globally competitive.
Market development assistance to MSMEs
To encourage MSMEs to market their products at a national & international level, the new Industrial Policy will provide financial assistance to MSMEs
- @75% of stall rent upto INR 2 lakh for exhibitions in India and
- @60% of stall rent upto INR 5 lakh for exhibitions Outside India.
Encouraging MSMEs to use Solar Power
With an aim to further ease the process of utilizing rooftop Solar Power in MSMEs, the power cycle for calculation of consumption of units has been increased from 15 minutes to 7 AM – 6 PM.
Also, for the purchase of surplus solar power from MSMEs, the price has been increased from INR 1.75/unit to INR 2.25/unit. Additionally, existing industries who switch to Solar Power, Interest Subsidy will be provided on term loan
Other Benefits
- Implementation of Enterprise Resource Planning [ERP],
- Information & Communication Technology [ICT],
- Obtaining quality certifications including ZED certification,
- Patent filing,
- Service line
- Power Connection charges
- Rent assistance etc.
Reach us
For a better understanding & discussion of how this issue might affect your business, please contact nexpective advisors
