While the high-profile congregation of business honchos, Vibrant Gujarat Global Summit is approaching closer, the Gujarat government on Monday announced new Industrial Policy for the state thereby aiming at promotion of micro-small and medium enterprises (MSMEs).
Announcing the policy here, state finance minister, Saurabh Patel informed that the policy, which provides several sops to women and young entrepreneurs, will encourage start-ups and boost setting up of MSMEs in the state.
For the new units coming up in the state, the government will provide cash assistance along with interest assistance. Entrepreneurs will get up to 10 per cent (within municipal corporation limits) and 15 per cent (in case of other areas) or maximum Rs 15 lakh or Rs 25 lakh as cash assistance on loan amount respectively. While interest subsidy will be given of 5 per cent in municipal corporation area, and 7 per cent in other areas with an upper limit of Rs 25 lakh or Rs 30 lakh respectively for a period of five years.
For start-ups, the government will offer venture capital assistance up to Rs 50 lakh as equity loan besides providing credit guarantee assistance.
Existing units will get cash assistance and interest assistance on investments made for expansions, diversification and modernization, the minister informed.
In order to encourage energy conservation and clean production processes, the government has decided to provide 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. The upper limit for the same is fixed at Rs 50 lakh.
In order to encourage innovations and protect their intellectual property rights, the government has decided to provide up to 75 per cent assistance on the registration cost of patent for technology or process.
"Gujarat has 1,76,060 units registered under manufacturing sector having a total investment of about Rs 71,105 crore and providing employment to over 18 lakh people. With the new industries policy, the state will emerge as the global manufacturing hub and move towards achieving the Prime Minister Narendra Modi's vision of 'Make in India'," Patel informed after announcement of the policy.