Gujarat Policy & Incentives

Gujarat State Policy

1. Gujarat Tourism Policy 2021-25

Document Checklist

For both registration and financial benefit applications, several documents are required:

1. GST Registration/Udyam Registration: Self-Certification if certificates are not applicable.

2. Authorized Representative Details: Authorization on the organization’s letterhead.

3. Proof of Commercial Operation: First invoice to a tourist.

4. Certification Copies: IGBC, GRIHA, LEED, GSTC Certificates.

5. Payment Receipts: Required for verification.

6. Self-Certification/Undertaking: On the organization’s letterhead.

7. Bank Details Proof: Canceled cheque or other proofs for availing financial benefits.

Financial Assistance Breakdown

Participation in Exhibitions and Travel Tourism Shows

1. National/International Level Exhibition within Gujarat:

– 50% of the space rent or up to INR 30,000 per event, whichever is lower.

2. National-Level Exhibition Outside Gujarat:

– Up to 60% of the space rent or INR 1,00,000 per event, whichever is lower.

– Up to INR 40,000 (exclusive of taxes) per event as airfare reimbursement.

3. International-Level Exhibition Outside Gujarat:

– Up to 75% of the space rent or INR 2,00,000 per event, whichever is lower.

– Space rent and economy airfare for a round trip for one person.

Quantum of Financial Benefits

1. Green Building Certification:

– 50% of the certification fees paid or INR 10,00,000, whichever is lower.

2. Global Sustainable Tourism Certification:

– 50% of the certification fees paid or INR 5,00,000, whichever is lower .

Eligibility for Financial Benefits

Exemption from Electricity Duty: 100% exemption for 5 years based on the first electricity bill.

Reimbursement of Stamp Duty and Registration Fee: 100% reimbursement provided.

Authorization for Disbursement
The authority for disbursement of financial benefits predominantly lies with the Commissioner of Tourism, Government of Gujarat, while certain incentives require approval from the State Level Empowered Committee (SLEC).
Extent of the Policy

– Whole State of Gujarat: The policy applies to the entire state, but hotel/resort projects only qualify for benefits in identified High Priority Tourism Destinations listed in Annexure-A.

– Maximum Events: A maximum of three events per year per organizer are allowed under the policy.

– Rural Tourism and Annual Fairs: Projects organized by Gram Panchayat, Municipality, or Taluka Panchayat and Cooperative Societies are eligible for financial benefits.

Eligible Projects and Criteria

Various types of tourism projects are eligible for financial benefits under this policy, each with specified criteria:

1. Hotel/Resort: Minimum capital investment of INR 1 Cr. and must meet category certification guidelines.

2. Wellness Resort: NABH accredited with a range of wellness services. Facilities should include accommodation and landscaped spaces.

3. Apartment Hotel: Minimum investment of INR 50 lakh and requires Ministry of Tourism certification.

4. Tented Accommodation: Permanent foundation and basic infrastructure, adhering to Ministry of Tourism guidelines.

5. Container Accommodation: Must meet Tented Accommodation guidelines and updated standards.

6. Bhunga/Cottage/Log Hut: New tourism projects aligning with one-star hotel category guidelines.

7. Houseboat: Minimum required facilities operating for a minimum of six months annually for five years.

8. Motel: Minimum investment of INR 50 lakh and Ministry of Tourism certification.

Additional Support

1. Green and Sustainable Certifications: Significant financial support is provided to incentivize sustainable and environmentally friendly projects.

2. Physical and Digital Infrastructure: The development of sanitation, hygiene facilities, and e-vehicle charging stations is emphasized for a comprehensive tourism infrastructure .

The summarized investor application guidelines from the Tourism Policy 2021-2025 offer a robust structure for investors and stakeholders, ensuring detailed criteria, significant financial incentives, and clear procedural guidance to boost Gujarat’s tourism potential.

Gujarat State Policy

2. Gujarat Industrial Policy 2020

The Gujarat Industrial Policy 2020 is framed to advance Gujarat as a leading global business hub, emphasizing sustainable manufacturing and service industries. It operates with the vision of significantly contributing to “Atma Nirbhar Bharat” (Self-reliant India) and is set for a period of five years starting August 7, 2020 .
Vision and Mission

The policy’s vision is to establish Gujarat as a global business center by promoting entrepreneurship, innovation, and balanced regional development. This is to be achieved through:

– Development of world-class infrastructure

– Offering competitive fiscal incentives

– Simplifying the ease of doing business

– Building integrated value chains

– Generating employment

– Enhancing export competitiveness

– Ensuring effective policy implementation

Objectives

The policy outlines several key objectives:

– Creating an enabling business environment supplemented by a single window system

– Enhancing standards and export capabilities within the industry

– Fostering balanced growth by focusing on underdeveloped areas

– Promoting sustainable manufacturing practices and Industry 4.0

– Strengthening MSMEs and encouraging cluster development

– Boosting research, innovation, and entrepreneurship

– Promoting key sectors for employment, exports, and large-scale investments

– Developing sustainable, state-of-the-art industrial infrastructures

– Generating extensive employment opportunities

Key Features and Initiatives
1. Robust Physical Infrastructure:

Gujarat’s strategic location on India’s western coast is bolstered by world-class infrastructure, including a vast road network (157,470 km), power surplus with 30 GW installed capacity, 49 ports, and 17 operational airports.

2. Export Promotion:

Gujarat maintains a strong export position, accounting for over 20% of India’s exports. Efforts include partnerships with export councils, robust information dissemination through bodies like the Ahmedabad Management Association (AMA), and support for participation in trade fairs .

3. Grievance Redressal:

A dedicated mechanism under the Export Commissioner will address enterprise concerns and grievances promptly .

4. Logistics and Infrastructure:

With high rankings in the Logistics Ease Across Different States (LEADS) index, the policy supports logistics infrastructure development and the establishment of exhibition and convention centers, especially for MSMEs and exporters .

5. Support for MSMEs and Thrust Sectors:

The policy includes incentives for MSMEs, promotes the use of rooftop solar power, supports startup innovation, and encourages research and development. Special attention is given to service sector MSMEs and attracting large and ultra-mega investments for overall growth [citation:2][citation:3].

6. Skill Development and Employment:

There is a strong focus on aligning educational courses with industry needs, conducting skill gap analysis, and training/retraining the workforce in line with technological advancements. The policy mandates industry-specific short and long-term courses in ITIs, polytechnic, and engineering colleges with active industry participation in curriculum formulation .

Conclusion
The Gujarat Industrial Policy 2020 is a transformative initiative aimed at fostering regional balance and inclusive growth. By offering unique features such as leasing government land for industrial purposes and separating incentives from tax structures, the policy seeks to position Gujarat as a premier global business destination .

Gujarat State Policy

3. Guidelines for Aatmanirbhar Gujarat Scheme for Assistance to MSMEs Scheme

Assistance

1: Assistance of Capital Investment Subsidy to micro Enterprises Scheme

2: Assistance to Interest Subsidy MSMEs

The scheme, initiated by the Government of Gujarat, aims to provide financial and operational assistance to MSMEs to enhance their competitiveness, encourage quality certifications, and support infrastructural and technological advancements.

Key Schemes and Guidelines
1. Quality Certification Assistance
  • Eligibility: Micro, Small, and Medium manufacturing enterprises registered with the Ministry of MSME or DPIIT.
  • Assistance: 50% of the expenditure for national/international certifications (excluding ISO) and 50% of the cost for quality testing equipment, with a maximum cap of ₹10 lakhs.
  • Expenses Covered: Certification fees (excluding travel and hotel), testing charges by certified agencies, and the cost of required quality testing equipment.
2. Rent Assistance
  • Eligibility: MSMEs engaged in manufacturing activities (service and trading activities are excluded).
  • Assistance: 65% reimbursement of rent paid, up to ₹1 lakh per annum, for a maximum of five years.
  • Conditions: The rented premises must be legally owned, and rent must be paid through cheque or electronic payment. The lease agreement should be notarized or registered, with a minimum duration of 11 months expandable up to 5 years. Applications must be submitted within one year from the rent agreement date.
3. Enterprise Resource Planning (ERP) Assistance
  • Operative Period: From October 5, 2022, to October 4, 2027.
  • Objective: To provide financial assistance for implementing ERP systems in MSMEs to streamline their operations and improve efficiency.
Documentation Requirements

Each scheme requires specific documentation to apply for assistance, including:

  • CA Certificates: For turnover, fixed capital investment, and utilization of installed capacity.
  • Legal Documents: Such as rent/lease agreements, Udyam Registration Certificate, and other applicable industrial registration certificates.
  • Financial Statements: Detailed project reports, balance sheets, and audited annual reports.
  • Self-Declarations: Various affidavits and declarations in prescribed formats.
Application Process
Applications for different assistance programs must be submitted online via the IFP Portal (https://ifp.gujarat.gov.in) and supported by self-certified hard copies to the concerned District Industries Centre (DIC). The deadline for submission is typically within one year from the date of the relevant agreement or action.
Conclusion
The “Aatmanirbhar Gujarat Scheme for Assistance to MSMEs” is a comprehensive support framework designed to foster the growth and development of MSMEs in Gujarat. By providing financial assistance for quality certifications, rental expenses, and ERP implementations, the scheme aims to enhance the operational efficiency and market competitiveness of these enterprises. The detailed guidelines and required documentation ensure a structured and transparent process for availing of these benefits.
The summarized investor application guidelines from the Tourism Policy 2021-2025 offer a robust structure for investors and stakeholders, ensuring detailed criteria, significant financial incentives, and clear procedural guidance to boost Gujarat’s tourism potential.

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