Gujarat’s Industrial Infrastructure Assistance Scheme: Key Benefits and How to Apply

The “Scheme for Assistance for Industrial Infrastructure” was launched by the Industries and Mines Department, Government of Gujarat to facilitate the development and upgradation of industrial infrastructure across the state. The scheme aims to improve operational efficiency, promote investments, and foster industrial growth through well-developed support systems.

Benefits

• General Assistance: Up to 80% of eligible project cost or ₹25 crore per project, whichever is less
• Supplementary Assistance: If central government assistance is less than 80%, the remaining gap (up to 80%) will be covered under this scheme
• MSE Clusters: Eligible for up to 90% of the total project cost
• Industry-Specific Studies: Expenses for studies by professional agencies are eligible
• Disbursement: In 4 installments at 25%, 50%, 75%, and 100% of project expenditure

Eligibility

Eligible Institutions:
• Industries Associations, Chambers of Commerce, or SPVs registered under Societies Act, Trust Act, or Companies Act
• Large Projects or Group of Industries
• Government Departments, Agencies, Authorities, State/Central PSUs, Boards, Corporations, Municipal Corporations

Eligible Activities:
• Roads, overbridges, bypasses
• Water/gas/electricity/energy distribution
• Common warehousing, testing labs, incubation centers, fire stations
• Transport Nagar, water desalination, emergency centers
• Alternative energy, sewage/drainage, etc.
• Dormitories for industrial workers
• Link infrastructure for Large/Mega Projects

Eligible Investment:
• Fixed capital investment (excluding land cost)
• Up to 5% of the project cost or ₹20 lakh for cost of work estimates, tech sanctions, quality inspections
• Infrastructure must be at least 7 years old to qualify for upgradation

Exclusions

• Land purchase and development costs
• Goodwill, royalties, pre-operative expenses, capitalized interest
• Consultant fees, transport vehicles
• Working capital and non-listed expenditures
• New industrial parks (unless otherwise approved)
• Components already sanctioned under other state schemes

Application Process

Offline Process:

1. Submit project report and application to the Industries Commissionerate

2. Proposal is scrutinized and placed before the State Level Empowered Committee (SLEC)

3. Once approved, submit assistance claim in prescribed format as per Commissionerate guidelines

Documents Required

• Signed application form
• Constitution and registration certificate of institution
• Justification note for infrastructure requirement
• Existing infrastructure condition report (for upgradation)
• Photographs of the site/component
• Detailed Project Report (DPR) with technical details
• Ownership documents for land involved
• Layout map and site plan
• Undertaking and executive summary
• Consent letters for financial contribution
• Confirmation letters from banks/financial institutions
• Board resolution or authority letter
• Details of industries to benefit
• List of projects already assisted in the area
• Any other supporting documents

Frequently Asked Questions (FAQs)

1. What is the purpose of the “Scheme for Assistance for Industrial Infrastructure”?
   To promote industrial development by supporting the creation and upgradation of infrastructure in industrial areas or clusters.

2. Who is eligible to apply for assistance under this scheme?
   Registered industry associations, SPVs, government agencies, PSUs, and large industry groups.

3. What is the maximum financial assistance provided under the scheme?
   Up to 80% of the eligible project cost or ₹25 crore, whichever is less.

4. What types of projects are eligible for assistance?
   Projects related to road connectivity, utilities, common facilities, testing centers, fire stations, energy sources, and dormitory housing.

5. Are new industrial estates or parks eligible for assistance?
   No, infrastructure in new industrial parks is excluded unless specified.

6. What types of costs are excluded from assistance under the scheme?
   Land costs, goodwill, consultant fees, transport equipment, pre-op expenses, working capital, etc.

7. Can a private organization apply for this scheme?
   Yes, if it is an eligible SPV or industry group registered under appropriate legal frameworks.

8. What is the role of the State Level Empowered Committee (SLEC)?
   To scrutinize and approve project proposals for assistance under this scheme.

9. How is the financial assistance disbursed to eligible projects?
   In four stages: 25%, 50%, 75%, and 100% of the incurred expenditure.

10. Are projects involving upgradation of infrastructure eligible?
    Yes, but only if the infrastructure is more than 7 years old.

11. Are MSE clusters eligible for higher financial assistance?
    Yes, they can receive up to 90% of the total project cost.

12. Is there a time limit for completing the projects under the scheme?
    Yes, projects must adhere to the implementation schedule as defined in the DPR.

Sources And References

• Guidelines