Financial Assistance to Industrial Parks: Assistance on Fixed Capital Investment

What is the Financial Assistance to Industrial Parks scheme?

Financial Assistance to Industrial Parks is a capital incentive of the Industries and Mines Department, Government of Gujarat, administered by the Industries Commissionerate at Udyog Bhavan, Gandhinagar. Government Resolution No. GID-102020-324968-G dated 1 September 2020 notified the scheme under the Gujarat Industrial Policy 2020, with effect from 7 August 2020 and for a period of five years.

The "Assistance on Fixed Capital Investment" component is the money part of the scheme. According to the Gujarat Industrial Policy 2020 document published by the Industries Commissionerate, the state reimburses 25% of fixed capital investment up to Rs 30 crore for a park developed on a minimum of 20 hectares with at least 10 units, and 50% up to Rs 30 crore for a park in a Vanbandhu taluka developed on a minimum of 5 hectares with at least 5 units. Hostel or dormitory housing for domiciled workers attracts a further 25% of construction cost, capped at Rs 20 crore.

The scheme exists because Gujarat wanted private capital, not only GIDC, to build serviced industrial estates. The developer buys the land, lays internal roads, water lines, power distribution, drainage and effluent conveyance, then allots plots to manufacturing units. The state pays back a defined share of that infrastructure spend once the work is verified.

What counts as an industrial park

The operating guideline defines an industrial park as an estate developed for manufacturing of any product or service, carrying developed plots, internal roads, water distribution, sewage, power distribution, communication facilities and worker housing. Eligible industrial activity covers manufacturing under Section C of the National Industrial Classification 2008, research and experimental development under Section M division 72 group 721, software development, and IT-enabled products or services.

Who is eligible for the Industrial Parks assistance?

Institutions that can claim assistance

• Any industries association.
• Any enterprise registered under the Societies Act, the Partnership Act, the Trust Act or the Companies Act.
• A Special Purpose Vehicle constituted specifically to set up an industrial park.

Basic conditions the park must satisfy

• Minimum area of 20 hectares with 10 industrial units, and 2 additional units for every further 5 hectares or part of it.
• In a Vanbandhu taluka, minimum 5 hectares with 5 industrial units, and 1 additional unit for every further hectare.
• The main entry road must be at least 18 metres wide for parks up to 50 hectares and at least 24 metres for larger parks.
• Up to 5% of the area may be reserved for worker housing and up to 2% for business activities related to the park.
• Parks of 50 hectares or more must additionally have fire safety measures and solid waste or sewage treatment and disposal facilities.

Who cannot apply or is not eligible

• Individual citizens, workers and job-seekers cannot apply. This is an institutional infrastructure incentive with no personal benefit component.
• A developer who has already started site work or allotted plots before registration is not eligible, because execution must not begin before the registration certificate is issued.
• An institution availing incentives under any other State Government scheme for the same park cannot also claim under this scheme.
• Stamp duty reimbursement is not available on land given by, leased from or purchased from the government.

Expenditure that is not eligible

Land purchase and land development, goodwill fees, commissioning fees, royalty, preliminary and pre-operative expenses, capitalised interest, transportation equipment and vehicles, technical and consultant fees, working capital, and green belt and plantation costs are all excluded. Assistance is also not available for external or linked infrastructure such as the approach road, the water supply line up to the park, the disposal line for treated effluent or the power line from the nearest substation.

What documents are required?

How to apply for the Industrial Parks scheme

1. Register on the Investor Facilitation Portal at ifp.gujarat.gov.in using "New Investor Registration", then verify the email link sent to your registered address.
2. Log in and file the application for registration of the park, uploading proof of constitution, proof of identity, the 7/12 and 8A land extracts, the proposed layout plan and the project report.
3. Wait for scrutiny. The Industries Commissionerate examines the file and tells you within 15 days if anything is missing, then sends it to the General Manager, District Industries Centre, for a site verification report confirming that no infrastructure work has started.
4. Collect the registration certificate issued by the Industries Commissionerate. Only after this may you begin site execution and plot allotment.
5. Purchase 100% of the required land, get the layout plan approved, then file the application for sanction online with the approved plan and the DPR containing SOR-based estimates.
6. Present the project to the screening committee chaired by the Industries Commissioner, whose members include the Additional Industries Commissioner, the Joint Commissioner of Industries (Infrastructure), the Chief Engineer of GIDC, the Senior Town Planner from the CTP office and the Deputy Secretary, IMD.
7. Receive the sanction from the State Level supported Committee (SLEC), which decides the eligible components and the sanctioned project cost.
8. File claims in four phases at 25%, 50%, 75% and 100% of sanctioned infrastructure expenditure with the District Industries Centre, attaching the CA certificate, expenditure statements, Chartered Engineer certificate, TPQA certificate and the claim affidavit.

How to apply offline through the District Industries Centre

1. Download the registration checklist, application form and affidavit from the Industrial Policy 2020 page on ic.gujarat.gov.in.
2. Submit the completed set to the Industries Commissionerate, Block No. 1/2, Udyog Bhavan, Sector 11, Gandhinagar 382010.
3. Submit every claim to the General Manager of the District Industries Centre for the district where the park is located, since claims are verified there before they reach the Commissionerate.

How is the subsidy released and verified?

The disbursement follows the physical progress of the park. Claims are made in four instalments at 25%, 50%, 75% and 100% of the sanctioned project cost in infrastructure facilities, calculated on actual expenditure excluding land. 15% of the eligible assistance is deducted from each claim and released only after the park is complete.

Every claim is checked by a joint inspection team comprising the Executive or Deputy Engineer from GIDC or R&B, the Town Planner or Assistant Town Planner of the district or area development authority, the Regional Manager of GPCB where applicable, and the General Manager of the District Industries Centre as coordinator. The Commissionerate then scrutinises the claim and releases the eligible amount.

Stamp duty reimbursement on the land bought for the park can be claimed only after the full required land is purchased and at least 10% of the approved infrastructure is complete. Assistance for worker hostels and dormitories can be claimed only after 50% of the sanctioned housing cost is spent, with the balance after the accommodation is finished with all amenities.

A park is treated as complete when the infrastructure and worker housing are in use, the minimum number of units have been allotted plots, and at least one unit has started commercial production.

Why claims get rejected or held up

• Work started before registration. The DIC site verification report must confirm that no infrastructure work had begun; if it had, registration fails.
• Estimates not on the prevailing SOR. Assistance is calculated on the Schedule of Rates of the concerned government department, so non-SOR estimates are trimmed.
• Missing TPQA certificate. A Third Party Quality Assurance certificate from an agency on the approved list must accompany every claim.
• Land cost included in the claim. Land and land development spend is disallowed outright and inflates a claim that then fails scrutiny.
• No GPCB consent or environmental clearance where the park needs one, disbursement is stopped until it is produced.
• Double-dipping. Availing another State Government incentive for the same park disqualifies the claim; central assistance is allowed only within the 60% (or 80% for Vanbandhu) combined ceiling.
• Quarterly progress reports not filed with the Commissionerate and the DIC.

If a developer breaches the guideline, the SLEC can withdraw the approval, order repayment of assistance already paid, and the assets can be forfeited under the applicable law. The decision of the SLEC is final in any dispute.

Key dates

• 7 August 2020 — scheme comes into force.
• 1 September 2020: GR No. GID-102020-324968-G issued.
• 6 August 2025, end of the notified five-year operative period.
• Only infrastructure expenditure incurred during the operative period, excluding land and land development cost, is eligible.

Gujarat has since published the Viksit Gujarat Industrial Policy 2026 on the Industries Commissionerate website. Because no extension notification for this particular scheme is published on the Industrial Policy 2020 page, a developer planning a fresh proposal should confirm the current position in writing with the Industries Commissionerate before committing spend.

Where to get help

• Investor Facilitation Portal helpline: 1800 233 1847, working days, 10:30 am to 6:10 pm.
• Industries Commissionerate: Block No. 1/2, Udyog Bhavan, Sector 11, Gandhinagar 382010, Gujarat.
• District Industries Centre: the General Manager of your district DIC is the first point of contact for site verification, claims and progress reports.
• The IFP contact page at ifp.gujarat.gov.in carries the current helpdesk details for portal and login problems.

No agent can get a park registered or sanctioned faster. Registration, sanction and claims all run through the portal and the SLEC, and every stage is minuted.