Gujarat government promotes industrial parks with incentive push

GANDHINAGAR: The recently announced new industrial policy aims at promoting construction of industrial parks by offering huge incentives to developers. Developers of new industrial parks in the state can now avail up to 70 per cent of their total project cost in the form of financial incentives. If these parks are set up in tribal areas, developers can get financial incentives of up to 90%

The scheme is primarily aimed at promoting industrial parks for small and medium industries, in which the government will provide financial incentives of up to a maximum of Rs 30 crore. Parks which are under development and have not obtained any benefits under the 2015 industrial policy, can also avail benefits of the new policy. Small and medium scale industries provide the highest employment in the state.
A government resolution of the industries and mines department – “Gujarat Industrial Policy 2020 Scheme For Assistance To Industrial Parks,” has been approved by the state government. The government expects a much better response from developers to the newly announced scheme, as compared to the earlier one.
Under another scheme that has been announced in the new policy for industrial infrastructure, the government has promised assistance of up to 80% of the infrastructure cost to industries, with a maximum assistance of Rs 25 crore per project. Costs incurred for setting up infrastructure like road, water, drainage, water desalination, primary health services, etc., will be covered under the assistance.
In the earlier industrial policy, restrictions related to revenue laws were an impediment to the success of industrial parks. However, the government, through an ordinance issued recently, has lifted restrictions under section 63 AA of the tenancy act.
Developers are hopeful to get flexibility in developing industrial parks and that the government will promptly transfer financial benefits to them. Developers say financial benefits in the earlier policy were not transferred to beneficiaries on time.