Various sops in the form of cash assistance, interest subsidies, venture capital assistance as well as assistance for registration cost of patent for technology have been covered under the new industrial policy. For instance, under the industrial policy, new units in the MSME sector will receive cash assistance along with interest subsidy from the Gujarat government.
Commenting on the policy, Saurabh Patel, minister of finance, Gujarat government stated that the policy will encourage start-ups and boost setting up of MSMEs in the state through interest subsidies and other financial assistance, even as it looks to provide several sops to women and young entrepreneurs.
Also Read
To boost entrepreneurship, under the policy, the government will provide entrepreneurs with assistance of up to 10 per cent (within municipal corporation limits) and 15 per cent (in case of other areas) of loan amount or a maximum of Rs 15 lakh or Rs 25 lakh, respectively. On the other hand, interest subsidy of around five per cent in municipal limits and seven per cent in other areas will also be provided at an upper limit of Rs 25 lakh or Rs 30 lakh, respectively for a period of five years.
The policy will look to encourage setting up of more number of start-ups through venture capital assistance up to Rs 50 lakh as equity loan besides providing credit guarantee assistance.
"Gujarat has 176,060 units registered under manufacturing sector having a total investment of about Rs 71,105 crore and providing employment to over 1.8 million people. As a result of the new industrial policy, Gujarat will emerge as the global manufacturing hub and move towards achieving the Prime Minister Narendra Modi's vision of 'Make in India'," Patel stated as part of the policy announcement.
Sops under the policy also include cash assistance and interest assistance on investments made for expansions, diversification and modernisation among existing units.
What's more, in a bid to encourage innovation and IPR protection, Gujarat government will also be providing 75 per cent assistance in the registration cost of patent for technology or process.
The policy will also facilitate and encourage energy conservation and clean production processes, through provision of 50 per cent capital assistance on investments made towards clean technology adoption including equipment purchased to meet the national and international safety, energy and pollution standards. As per the policy, the upper limit for the same has been fixed at Rs 50 lakh.