Gujarat Govt launched the ‘Industrial Policy 2020‘. The policy aims to provide ₹ 40 thousand subsidies to the industries interstate for coming five years.
The New Industrial Policy will help to lease lands to industrialists and also provide incentives to industrial parks. Under the policy, the State Govt will appoint dedicated “relationship managers” to host 10th Vibrant Gujarat Summit in January 2021.
The Gujarat Industrial Policy, 2015, came to an end in 2019 and the govt had extended it till 2020.
Achievement of previous Industrial Policy
Gujarat stands first in terms of number of Industrial Entrepreneurship Memorandum. This is 51 per cent of total IEMs filed nationwide. The subsidies being allocated to the current policy is 3 times as that of the previous policy.
Focus on China
The policy will help industries willing to relocate from China through “Relocation Incentives”. The Govt has held joint meetings with countries such as Japan, Germany, The United States of America and United Kingdom in this regard.
Highlights of Industrial Policy, 2020
- The Industrial Policy 2020 provides an average outlay of ₹ 8,000 crores under which incentives are to be provided to the industries in the state.
- The policy delinks incentives from State Goods and Service Tax. Gujarat is the first state to do so under the new policy.
- The policy provides 12 per cent Fixed Capital Investment . The State Govt will provide 65 per cent of cost of acquiring foreign patented technologies by MSMEs. This will be up to Rs 50 lakhs.
- In order to encourage MSMEs to use rooftop solar power, the state govt will pay 50 paise to every solar unit of solar power bought from MSMEs. Thus, the new purchase price stands at ₹ 2.25 per unit.
- The policy has increased seed support from Rs 20 lakhs to Rs 30 lakhs.
- It provides incentives to private developers to set up private industrial parks in the state. The incentives will be 25 per cent of Fixed Capital Investment. The upper limit for this has been set to Rs 30 crores.
- The policy focuses on 15 different sectors. They have been divided into core sectors that include waste management projects, electric vehicles and green energy.