Gujarat launches Industrial Policy 2020

Gujarat Industrial Policy 2020 has been unveiled by the state that aims to provide an estimated Rs 40000 crores as subsidies to the industries within the next five years. The new policy is aimed at leasing out government land to industrialists, provide incentives to private industrial parks and also provide relocation incentives to units intending to relocate in wake of COVID 19 Pandemic.

Gujarat Industrial Policy 2015

The earlier industrial policy of the state was published in 2015 that came to an end in December 2019. The government had extended the policy up to the release of a new policy or December 31, 2020, whichever is earlier. The last policy was immensely successful due to the fact that Gujarat stands first in terms of number of Industrial Entrepreneurship Memorandum filed for 2019.

What is new in the Gujarat Industrial Policy 2020?

• This new policy provides an average annual outlay of Rs 8000 crores, which will be earmarked for providing incentives to the industries.
• Gujarat will also become the first state to delink the industries from SGST.
• The government will also provide support up to 65% of the cost of acquiring foreign patented technologies by MSMEs. The maximum support will be Rs 50 lakhs.
• The government will pay 50 paise more to every unit of solar power bought from the MSMEs in order to promote rooftop solar power. The new purchase price will be Rs 2.25 per unit.
• There will be capital subsidy and interest subsidy for the MSME sector in the state.
• For the startup companies, the new policy has increased the seed support from Rs 20 lakhs to Rs 30 lakhs. Additional financial support will be provided to these ventures as well.
• The state will provide an incentive to private developers for setting up private industrial parks in the state. This will be 25% of fixed capital investment up to Rs 30 crores.

Background of the New Industrial Policy

The new policy has been framed after meetings held with various stakeholders by nine task force committees of the state government. It will focus on 15 thrust areas and they have been divided into the core sector and sunrise sector. The first is where the state already has a manufacturing base whereas the latter include sectors such as electric vehicles, waste management projects, green energy, etc.

Month: Current Affairs - August, 2020