Gujarat Scheme for Research & Development: Up to ₹5 Crore FundingScheme StatusScheme Status

Under the “Scheme for Assistance for Research & Development Activities” launched by the Industries and Mines Department, Gujarat (effective from August 7, 2020 to August 6, 2025), eligible institutions can receive financial support to establish R&D or Product Development Centres. The initiative promotes sustainable industrial growth by enabling companies and organizations to adopt eco-friendly practices and comply with environmental norms. This component specifically supports the setup of new centres that focus on scientific, industrial, or technological research and product development, ultimately enhancing innovation and technological advancements.

Benefits

  • Financial Assistance:
    Up to 30% of the investment in machinery, equipment, hardware, software, and related assets (excluding land and building costs) is provided, subject to a maximum cap of ₹5,00,00,000 per project.

Eligibility

Eligible Institutions:

  • Institutions, Industrial Associations, or Professional Bodies recognized by CSIR/DSIR.
  • Legal entities such as companies, partnership firms (including LLPs), societies, trusts, industrial co-operative societies, or proprietorships engaged in manufacturing, production, processing, or job work.

Eligible Activities:

  • Setting up a new R&D Centre dedicated to scientific, industrial, or technological research and development.
  • Establishing a Product Development Centre aimed at improving product designs, processes, and operations.

Note: Provisional approval from CSIR/DSIR is mandatory.

Application Process

Mode: Offline

  1. Submission:
    • The applicant (R&D institution or Industrial Association) must apply to the Industries Commissionerate using the prescribed format.
    • All necessary documents must be attached as per the guidelines.
  2. Scrutiny:
    • The Industries Commissioner’s office will review the proposal for eligibility and compliance with the scheme guidelines.
  3. Review:
    • Proposals are then forwarded to the State Level Empowered Committee (SLEC) for further review and approval.
  4. Disbursement:
    • Once approved by SLEC, the sanctioned assistance is reimbursed and disbursed by the Industries Commissioner’s office.

Documents Required

  • Project Sanction Letter:
    Copy issued by the Industries Commissioner’s (IC) office.
  • Registration Certificate:
    Of the institution/industrial association/enterprise/academia/professional body, along with MoM/AoA.
  • CSIR/DSIR Recognition:
    Copy of the recognition letter.
  • CA Documentation:
    CA Certificate and CA-certified Expenditure Statement (in prescribed formats).
  • Project Progress Report:
    Details of milestones achieved, R&D outcomes, asset creation, societal and industrial benefits, patent filings/grants, publication details, and impact analysis.
  • Manpower Details:
    Employment details of technically qualified personnel (in prescribed format).
  • Project Completion Certificate (PCC):
    As per prescribed format.
  • Utility Proofs:
    Copy of Electricity Bill and Valid Insurance Policy.
  • GPCB Consent:
    (If applicable).
  • Financial Documentation:
    Proof of separate books of accounts maintained and separately identifiable fixed capital investments.
  • Bank Details:
    Bank account statement or cancelled cheque.
  • TPQA Documentation:
    Details of Third Party Quality Assurance (TPQA) agency with appointment letter and agreement (if applicable).
  • PAN Card:
    Copy.
  • Undertaking:
    Notarized undertaking for fulfilling the conditions mentioned in the sanction letter, along with a relevant board resolution (in prescribed format).

Frequently Asked Questions (FAQs)

  • What is the purpose of the scheme?
    To facilitate the establishment of new R&D/Product Development Centres, thereby promoting innovation, technological advancements, and product design improvements in the industrial sector.

  • Who is eligible to apply?
    Legal entities such as companies, industrial associations, or professional bodies that are recognized by CSIR/DSIR and engaged in manufacturing, production, or technical services are eligible. Biotech start-ups with a focus on innovative R&D are also eligible.

  • What types of activities are eligible?

    • Setting up new R&D Centres focused on research and development.
    • Establishing Product Development Centres to improve designs, processes, and operational efficiencies.
  • What is the maximum financial assistance available?
    Assistance is provided at 30% of the investment cost, up to a maximum of ₹5,00,00,000.

  • Are land and building costs eligible?
    No, the assistance excludes land and building costs.

  • Is recognition by CSIR/DSIR mandatory?
    Yes, eligible institutions must be recognized by CSIR or DSIR.

  • Can a proprietary concern apply?
    Yes, as long as it meets the eligibility criteria as a legal entity.

  • Must separate accounts be maintained?
    Yes, the R&D expenditure must be recorded separately in the company’s books.

  • Can an institution undertake multiple activities under the scheme?
    Multiple activities may be undertaken if they comply with the scheme guidelines.

  • Are software purchases eligible?
    Yes, expenditures on hardware, software, and related assets are eligible.

  • Are new entities eligible?
    Yes, provided they are legally established and recognized as per the eligibility criteria.

  • How will the funds be disbursed?
    Funds are reimbursed by the Industries Commissioner’s office after approval by the SLEC.

Sources and References

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