National

Gujarat eyes economic revival with Rs 14,000-cr package

Our Bureau Ahmedabad | Updated on June 05, 2020 Published on June 05, 2020

Gujarat Chief Minister Vijay Rupani

‘Atmanirbhar Gujarat’ offers tax relief, subsidies for businesses, free food, cash for poor

The Gujarat government has announced a Rs 14,000-crore economic relief package targeting different segments, to revive the State's economy following the Covid-19 crisis.

The relief package comes after a the high-powered committee appointed by the State Chief Minister, Vijay Rupani, under the leadership of former Finance Secretary Hasmukh Adhia, submitted its interim report to the State government last week.

"After discussion on the report submitted by the high-powered committee, the State government decided to offer a Rs 14,020-crore economic package under Atmanirbhar Gujarat. We aim to achieve economic growth that will take on-board all segments of the society," Rupani said. The package provides tax relief, subsidies on capital investments and interest payments, apart from financial support to entrepreneurs, small businessmen, farmers and, animal breeders, among others.

The features of the package include a big push for the real estate sector, with a Rs 1,000-crore allocation as subsidy for 1.6 lakh affordable houses. One lakh homeless tribal worker beneficiaries will get concrete houses in their native places with a total allocation of Rs 350 crore.

A separate announcement for direct benefit to the poor in terms of cash payment of Rs 1,000 in their bank accounts, besides free rations, advance pension for the elderly poor, disabled and widowed, with a total provisioning of Rs 4,375.68 crore. Also, Rs 300 crore has been earmarked for 62 lakh beneficiary families to receive 12 kg of tur dal annually under the public distribution system. These are apart from other allocations for the urban poor, vendors and construction workers, and for women self-employment.

For farmers, the State government has allocated Rs 410 crore for zero-interest crop loans for 24 lakh farmers. (Of the 7 per cent loan interest, the State will bear 4 per cent, while the Centre's share is 3 per cent.)

The government has also announced waivers and relief measures for industries, including large industries and MSMEs. This includes Rs 650 crore worth of relief in the form of waiver of 100 units for residential electricity consumers who consume less than 200 units of electricity per month. A total allocation of Rs 600 crore for 20 per cent relief in property tax for business establishments such as shops, offices, restaurants, hotels, nursing homes and hospitals.

Capital and interest subsidy for industries with a total allocation of Rs 768 crore, a special Rs 450-crore worth of capital and interest subsidy allocation for the textile industry, Rs 150 crore worth of capital and interest subsidy for mega industries.

The State will also quickly release Rs 190 crore worth of subsidy for businesses under the Vapayee Bankable Yojana.

There will be a one-time settlement scheme for the outstanding dues of units in the State industrial estate. The state has made provision of Rs 133 crore to allow 50 per cent waiver in the interest payable on dues, and a100 per cent waiver in the payable fines.

Under the Atmanirbhar Gujarat scheme 2.0, an estmated 3 lakh self-employed and workers and people from middle-income groups, will be entitled to get finance in the range of Rs 1 lakh to Rs 2.5 lakh from cooperative banks and credit cooperative societies, with a provision of Rs 300 crore.

Among the clusters, Morbi's ceramic cluster received Rs 30 crore of relief in fuel cost for natural gas consumed by the units. About 1,250 units are likely to benefit from this decision.

The Chief Minister also announced several other announcements covering self-employment for youth, workers, agriculture, animal-husbandry and fisheries, apart from announcements relating to the poor and small businesses.

Published on June 05, 2020
This article is closed for comments.
Please Email the Editor