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Gujarat_IndustdaJ Policv 2009

Schemes for improving Industrial
Infrastructure
-Modification thereof.

Government of Gujarat
Industries and Mines Department
Corrigendum No. BGT/1008/626(1)-G
Sachivalaya, Gandhinagar
Dated: 11/01/2011

Read: (1) G.R. IMD No. BGT/1008/626(1)- G, dated. 27/2/2009

(2) Industries Commissioner's proposal on Single file No.

INC/Critical/2010/923312 dated 5-11-2010.

CORRIGENDUM :

The State Government has introduced the Industrial Policy 2009 with a vision
to ensure comprehensive social and economic development in the State. The policy
focuses on making Gujarat the most attractive investment destination not only in
India but also in the world. To ensure that the State transforms into a global
investment destination, the policy envisages establishment of several new
opportunities like incubation centers, Center of excellence and specific projects/
Facilities for development of area/Industries and skills. The policy therefore proposes
to give a special focus on youth by way of skill formation of and encouragement to
their initiatives, innovations and entrepreneurship. It envisages creating and
supporting centers of excellence, incubation centers, and innovation centers &
knowledge application facilitation Centers in partnership with private and corporate
sector as well as the academia to fully harness the potential of the youth in the State.
It was under consideration of government to add a new scheme in this regard.

Accordingly, after careful consideration, Government is pleased to amend the

said G.R., dated 27-2-2009. The following New scheme is added and included after
scheme 2.0 and Para 3 shall read as follows:
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.•..J .. t} Scheme - 3: Schcn"lc for financial assistance to incubation centre/ lnnov?.tion
c.entre 1 Knowledge Application Facilitation Centre/Centers of excellence in
the areas of industry, Infrastructure, Entrepreneurship & technology for
industrial development of the State.

3.1 Pdvate Institution

Private institution meanc: any separate autonomous SPV promoted by State and
National Level Industry Association, Industrial unit, Renowned Institution
Registered under Societies Act, Trust Act, or the Companies Act. SPY should
have an independent legal identity and registered under Societies Act, Trust
Act or the Companies Act. SPVs promoted by Universities can also be
considered under the scheme. Any special projects by institutions other then
those mentioned under 3.1, if approved by SLAC will also be eligible under
the scheme. Any special project by institutions other then those mentioned
under 3.1, if approved by SLAC will also be eligible under the scheme.

3.2 Public Institution

Public institution means GIDC, GPCB, other Board/ Corporations and local
authorities like Nagarpalika, Municipal Corporation, Urban Development
Authority, and District Panchayat etc.

3.3 Eligible Institution

Eligible Institution as defined in Para 3.1 and 3.2 above will be eligible under
the scheme.

3.4 Project Cost

Project cost means the cost as appraised by any committee constituted by
· Government of Gujarat or Banks or Financial institution approved by Reserve
Bank of India or any other institution approved by State Level Approval
Committee.

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_.,.~ Q~m1tum of asststance

The Government 'Nill provide assistance up to 70S;:) of the p~·ojcct cost or Rs. 1G
Crores whichever is less. The project cost includes Land, Building, Plan; ;end
Machinery, Equipment, infrastructure facilities (As approved by State Lc\·cl
Approval Committee) and recurring expenditures for 3 years. Ssnction of a
project under this scheme \Vill not make the project proponent ineligible for
taking any assistance I contribution from other central or state departments/
agencies/ private organization.

3.6 Eligible Fixed Capital Investment:

Eligible fixed capital investment means the capital investment made in the
fixed assets viz. Land, Building, Plant & Machinery, Utilities, equipment,
electrification and recurring expenditure for three years incurred (Acquired and
paid) during the operative period of the scheme.

• Land: Actual cost of land inclusive legal charges (Transfer) of land

needed for project. In case the applicant is already in possession of land,
the cost of land would not become a part of project cost.

• Building: Building means building required for the project including

administrative building, Laboratory, R and D, facilities, Project room,
Meeting room, Class room, Utilities and other infrastructures facilities
approved by State Level Approval Committee (SLAC). The committee
may approve renovation and remoulding of existing building as per need
of the project

• Plant Machinery: Plant and machinery means the machinery and

equipments, electrification and installation cost. Equipment also
includes office, laboratory and testing equipment and software etc.

• Other fixed assets: Other assets means the miscellaneous other fixed
assets needed for project and approved by empowered committee
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3. 7 Eligible recurring expenditm:e:

T tne recurnng
.
expencmures
'.
means expenmtures
,. .
nceaea
'
to manage Lhe day to
1

day requirement of project \Vhich includes wages and salaries, office

expenditure, stationary, telephone, postage, security, legal taxes and excludes
expenditure of traveling abroad and hotels etc. The project proponent has to
provide 3 years proposed recurring expenditures at the time of submission of
project report and in no case such recurring expenditures will be increased
after the approval of committee and such increase would have to borne by
proponent.

3.S Board of governance

• The Board of Governance shall be an autonomous body having techno

entrepreneurs, accomplished academicians, representatives of the Government
of Gujarat and technologists.

• The Chairperson of the Board of Governors shall be a person of eminence.

• Board of Governance will select the chairman and /CEO/ Whole Time
Director of the centre and their terms will be initially for five years.

3.9 Procedure;
The eligible institution will make an application to Industries Commissioner in
a prescribed Performa with detailed project report. It is mandatory to obtain
prior approval of State Level Approval Committee (SLAC) before
establishment of such centre.
The project report should contain the following details.
• The focus sector/s ·
• Area of activities
• History and background of promoters
• Composition I Members of Board of governance and advisory Board
• Tie ups with reputed national and international persons/ institution.
Universities/colleges

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 {I Capital Cost
~ Recurring cost
<\) Infrastructure needed
• Benefits to state Government and Industries, sector, Cluster, areas etc.
• Facilities and services to be offered to society, Entrepreneur and
Industries.

3.10 The application will be submitted to Industries Commissioner along with

relevant details which will be scrutinised by the Screening Committee. The
members of the Screening Committee will be as under,

I. Additional Industries Commissioner Chairman

II. Representative of industry (sector specific) (2) Members
III. Representative of University (2) Members
IV. President, Gujarat Chamber of Commerce and Member
Industry
v. Joint/Deputy Industries Commissioner, Member-
secretary

The Screening Committee will scrutinise the application and submit its
recommendations to State Level Approval Committee (SLAC), constituted
vide Industries and Mines Department Resolution No. BGT/1008/626/G, dt.
27.2.2009.

3.11 Other conditions

1 The project availing assistance under the scheme shall have to remam m
operation for minimum 10 years.
n The proponent of the project should have to deliver minimum out come within
5 years after the commissioning of the project.
m In case the project does not deliver the definite outcome proposed in the
project, the State Level Approval Committee and/or Government is authorised
to take over the project along with all the assets of the project and other fixed
assets and except other liability of promoter and employees of the SPY. The

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committee may band ovc~· the project to other Government, Semi Gv\'Crmnem
and Board/ Corporation or other private SPVs as mentioned in this resolution.
1\' The promoters have to sign an agreement ;;vith Industries commissionerate th2t
the terms and conditions arc binding to them and assistance would be
disbursed only after such agreement has been signed. The first disbursement of
<1 Crore will be released to the SPY on approval of the project by the
committee. Subsequent releases will be done on the basis of expenditures
incurred by SPY and the percentage share of Government in the total project
cost.
v The project shall have to be operationalized within 3 years from the date of
the final sanction given.

By order and in the name of the Governor of Gujarat,

(Shridevi Shukla)
Officer on Special Duty to Government
Industries and Mines Department

Copy to:
1 Secretary to Hon. Governor of Gujarat*
2 Principal Secretary to Hon. Chief Minister*
3 Personal Secretary to all Hon. Ministers
4 Advisor to Hon. Chief Minister
5 Under Secretary to Chief Secretary
6 Principal Secretary, Finance Department
7 Personal Secretary to P.S. Industries and Mines Department
8 Chief Executive Officer, GIDB
9 Vice Chairman & Managing Director, Gujarat Industrial Development
Corporation, Udyog Bhavan, Gandhinagar.
10 Industries Commissioner, Udyog Bhavan
~~ ~ccountant General Rajkot/Ahmedabad. *
V :select File.