Introduction: –
Situated on the west coast of India, Gujarat is one of the leading industrialized states in the country. Its geographical area of about 2 Lakhs sq. km. accounts for 6% percent of the total area of India. With a coastline of 1600 km, it’s well connected to all the major ports In all continents and countries.
Gujarat, with only 5 per cent of the national population, contributes 7.3 per cent to the national GDP. Gujarat has witnessed 13% growth in GDP at current prices in 2019-20 over the previous year. Gujarat has been constantly achieving a double-digit growth rate. In the last 5 years, the state registered an average growth rate of 10.14% at a constant price.
New Gujarat Industrial Policy, 2020. :-
Gujarat Industrial Policy (GIP), 2015 has come to an end as on 31st December 2019. It was further extended up to the date of release of the new policy or 31st December 2020 whichever is earlier.
The Government of Gujarat has released the new Gujarat Industrial Policy (GIP), 2020 on August 07, 2020, which shall have an operative period of five years that is till August 6, 2025.
The new Gujarat Industrial Policy 2020 has been formed to further consolidate this momentum and enhance the current growth rate.
Objectives: –
- Supporting jobs
- value addition across sectors
- adoption of state-of-the-art technology
- increase productivity with Industry 4.0 manufacturing
- innovation-driven ecosystem with a focus on research and development so as to propel the state further towards “Atmanirbhar Gujarat”
- the shaping of a Modern Gujarat that spearheads the vision of a Modern India.
Under GIP,2020 The government has introduced various schemes for Thrust sectors, MSMEs, Startups, Sick Industries, Reallocation Incentives, Balanced regional Development, Research and Innovation, sustainable manufacturing etc.
Assistance to the MSMEs :-
The definition of MSME is the same as the revised definition given by the central government of India.
Criteria | Micro | Small | Medium |
Investment in Plant & Machinery or Equipment | < 1 Crore | < 10 Crore | < 50 Crore |
Turnover | < 5 Crore | < 50 Crore | < 250 Crore |
The MSMEs can have two types of registered units under UDYAM registration that is manufacturing and service units. Globally, the Services sector contributes a whopping 75% of the global GDP and overall employment. India’s GDP composition, according to multiple sources, is as follows: Agriculture: 16%; Industry: 26%; Services: 58%. In other words, the Services sector contributes more to India’s economy than the other two sectors combined.
Services: –
In New Gujarat Industrial Policy there are various schemes that are focused on the development of service units of MSMEs. The Following services given in Annexure-A and Annexure-B are eligible services for the schemes introduced in the said policy.
Annexure-A
List of Eligible Services Activities
- Logistics facilities such as Container Freight Station
Operators/Warehouses/Cold Storages etc. - Material Testing Centre
- Startups and Incubation Centre
- Hallmark certification Centers
- Technical testing and analysis servicing
- Maintenance and repair of machinery and equipments
- Repair of Computers / Communication and Electronics equipment / Household Goods
- Maintenance and repair of Utility Projects
- Packaging services
- Industrial reuse/disposal services
- Apparel/Cutting & Stitching job work (other than retail tailoring)
- Printing, Scanning, Digitalization & Lamination
- Weighbridges
- Color labs
- Steam & Air conditioning supply
- Waste collection, treatment, and disposal activities
- Electrical, plumbing, and other installation activities
- Maintenance and repair of Motor vehicles
- Motion pictures, Video and Television production, Sound Recording, and Music publishing activities
- Activities of internet Access by the Operator of the wireless / Satellite infrastructure
- Web hosting activities
- Specialize design activities – Fashion design related to Textile/Apparel/ Jewelry/ Furniture/ Fashion goods/ Graphic design etc.
- State Level Empowered Committee is empowered to add/delete service activities listed in this Annexure.
Annexure – B
List of Service Sectors
- Financial Services
- Health Services
- Transport and Logistics Services
- Audio Visual Services
- Construction-related Engineering Services
- Environmental Services
Benefits/Schemes for Service Units of MSMEs: –
(1) Interest Subsidy-
GIP,2015 – Interest Subsidy of 5% with the maximum amount 25 Lakhs p.a. for a period of 5 years in Municipal Corporations areas. Interest Subsidy of 7% with the maximum amount 30 Lakhs p.a. for a period of 5 years in areas other than Municipal Corporations area.
GIP, 2020 –
Only new MSME of Service sector will be eligible for Interest Subsidy on term Loan on new machinery, equipment, and furniture/fixture (except land and building).
Category I Taluka | @7%* of term loan amount up to 35 lakhs per annum for a period of 7 years |
Category II Taluka | @6%* of term loan amount up to 30 lakhs per annum for a period of 6 years |
Category III Taluka | @5%* of term loan amount up to 25 lakhs per annum for a period of 5 years |
* 1% Additional Subsidy to registered Startups.
The Enterprise shall have
- Goods and Service Tax registration
- Shop and Establishment registration from Municipal corporation
The Services listed in Annexure B Shall have
- To give permanent employment to minimum 10 (ten) persons.
- GST registration.
(2) Assistance in implementation of Information and Communication Technology(ICT):
The equipment required for use of ICT as a media of communication, networking with hardware for accessing cloud computing shall be eligible for 65% of the capital expenditure related to ICT facilities, maximum upto Rs. 5,00,000.
(3) Assistance for the acquisition of Technology:
The scheme will be provided by way of 65% of the cost, in GIP 2015 the limit was 50% of the cost, payable subject to a maximum of Rs. 50 lakhs.
Enterprise Shall obtain prior approval of MSME Commissionerate within one year after signing of MOU/agreement/contract with a technology provider.
(4) Assistance for Patent Registration:
75% of the cost incurred for any number of patent applications subject to maximum of 25 lakhs.
(5) Assistance for saving in consumption of energy and water:
- 75% cost of energy/water audit max. 50000
- 25% of the cost of equipment, which minimizes the consumption by at least 10%, Up to 200000.
(6) Assistance for raising capital through SME Exchange:
Earlier it was 20% of expenditure which is now in GIP,2020 increased to 25% of the expenditure incurred on raising funds through SME exchange up to 5 Lakhs.
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For more queries, pls. connect on msme@rmpsco.com and rajnikant@rmpsco.com
Published on: April 14, 2021