Financial Assistance to Industrial Parks: Stamp Duty

What is the stamp duty assistance for industrial parks in Gujarat?

Financial Assistance to Industrial Parks is a scheme of the Industries and Mines Department, Government of Gujarat, administered by the Office of the Industries Commissioner, Infrastructure Branch. The stamp duty component of that scheme refunds the transaction tax on land, which is one of the largest single non-construction costs in developing an industrial estate.

The Industries Commissionerate states the entitlement in two parts. The developer of the industrial park is eligible for reimbursement at 100% of stamp duty paid on purchase of land as required for the project approved by the State Level supported Committee, and an individual unit is eligible for reimbursement at 50% of stamp duty paid by it on purchase of a plot in the industrial park.

The scheme's purpose, as stated by the Industries Commissionerate, is to promote and encourage industrial parks developed by private institutions, in order to upgrade state infrastructure and boost economic activity and employment generation. Gujarat has carried this scheme forward across successive industrial policies. The Gujarat Industrial Policy 2015 version, then the Gujarat Industrial Policy 2020, whose text incentivises private industrial parks at 25% of fixed capital investment up to Rs 30 crore.

Who is eligible for the industrial park stamp duty reimbursement?

A developer can apply if:

• It is an institution in the scheme's sense, an industries association, or an enterprise registered under the Societies Act, Partnership Act or Companies Act, or a special purpose vehicle constituted for setting up an industrial park.
• The park is developed on a minimum area of 20 hectares for the establishment of a minimum of 10 industrial units.
• The park provides the required basic infrastructure, developed plots, internal roads, water distribution facilities, sewage, power distribution, communication facilities and a hostel for workers, along with the indicative minimum list that includes asphalt or cement concrete roads, storm water drainage, domestic sewerage collection and disposal, street lights, open and green spaces, entrance gate, security and communication network, parking, effluent treatment and collection, and fire-fighting facilities.
• The project has in-principle approval and then final approval from the State Level supported Committee (SLEC).
• The developer follows a Third Party Quality Assurance system for the entire infrastructure development in the park.

Under the Gujarat Industrial Policy 2020, private investors setting up industrial parks in Vanbandhu talukas receive incremental support at 50% of fixed capital investment up to Rs 30 crore for parks developed on a minimum area of 5 hectares with a minimum of 5 units, a lower threshold than the general 20 hectares and 10 units.

Who cannot apply, or is not eligible:

• Individuals cannot apply as developers. This is an infrastructure incentive for institutions, associations, registered enterprises and SPVs. There is no personal or household benefit under it.
• A unit buying a plot cannot claim the developer's 100%. An individual industrial unit's entitlement is limited to 50% of the stamp duty it paid on its plot inside an approved park.
• Parks below the size and unit thresholds are not eligible, under 20 hectares or fewer than 10 units, outside the Vanbandhu taluka relaxation.
• A developer already availing incentive under another State Government scheme is not eligible, unless that other scheme specifies otherwise.
• Projects without SLEC approval cannot claim. Registration under the scheme itself is approved by the SLEC.
• Land bought beyond what the approved project requires is not covered; the reimbursement is for land "as required for the approved project".

What documents are required?

How to apply for industrial park stamp duty reimbursement

1. Assemble the project. Secure land of at least 20 hectares (or 5 hectares in a Vanbandhu taluka) capable of hosting at least 10 units (or 5), and prepare a project report and layout plan.
2. File the in-principle approval application in the prescribed format with the checklist documents, to the Office of the Industries Commissioner, Infrastructure Branch, Udyog Bhavan, Gandhinagar.
3. Attend the presentation. After the application is received, the developer is called to present the project to the committee, and the agenda goes to the State Level supported Committee if the proposal is found eligible.
4. Receive the in-principle approval letter, which is issued within 15 days from the date of approval by the committee.
5. Buy the land and build the park, following the Third Party Quality Assurance system for all infrastructure development.
6. Claim stamp duty reimbursement with the registered sale deed and duty payment proof. Reimbursement of stamp duty on purchase and subsequent sale is made after approval of the SLEC on production of the necessary documents.
7. Claim the infrastructure assistance in stages. The assistance is proportionally reimbursed at 25% and 50% based on expenditure incurred of at least 50% and 75% respectively, with final payment after completion of the industrial park.
8. File the final application on completion with the CA-certified expenditure statement, civil engineer certificate, TPQA certificate, project completion certificate and the DIC team report.

How much money is involved beyond stamp duty?

For a park buying Rs 100 crore of land, the stamp duty alone runs into several crore rupees, which is why this component is often the single largest cash item in a developer's incentive file.

Project timelines and conditions you must plan for

• Completion: 5 years for a park of minimum 20 hectares, 7 years for 50 hectares, and 10 years for 100 hectares or more, from the date of SLEC approval.
• Co-developer: where the park area exceeds 100 hectares, the institution may develop the park with a co-developer, with prior permission of the SLEC. GIDC may consider a joint venture with a park developer through a transparent process, with the JV modality approved by the SLEC beforehand.
• Quality: the TPQA system applies to the entire infrastructure development.
• Grant availability: disbursement of assistance sanctioned by the SLEC is released subject to availability of government grant, so sanction and payment are not the same event.
• Exclusivity: a developer availing incentive under this scheme cannot avail incentive under any other State Government scheme, unless specified otherwise.

Why claims stall, and what to do about it

• No in-principle approval before land purchase. Reimbursement follows the approved project; get the project approved and keep purchases within its scope.
• Land bought beyond project requirement. Only land required for the approved project attracts the 100% reimbursement.
• TPQA not followed. Infrastructure built without the third-party quality assurance system creates a certificate the final claim cannot produce.
• Incomplete infrastructure at claim time. Instalments are tied to expenditure milestones and the final payment to completion of the park.
• Overlapping state incentives. Declare everything; the exclusivity condition is strictly applied.
• Grant availability. Even an approved claim waits for budget release, so build that into project cash flow rather than treating sanction as cash.

Which policy governs a new park proposal?

The Industries Commissionerate's scheme page sets out the industrial park scheme as framed under the Gujarat Industrial Policy 2015, and the Gujarat Industrial Policy 2020 carried the incentive forward at 25% of fixed capital investment up to Rs 30 crore for parks of minimum 20 hectares and 10 units. The Viksit Gujarat Industrial Policy 2026, valid for five years from 1 June 2026, continues to promote development of private industrial parks and estates with high-quality internal infrastructure, common amenities, worker housing and environmental facilities, and introduces Green Industrial Parks and Estates: parks operating with a minimum of 70% green power and equipped with Zero Liquid Discharge facilities.

Because scheme-level resolutions under the 2026 policy were still being notified when this guide was fact-checked, a developer should confirm with the Joint Commissioner of Industries (Infrastructure) which resolution governs the proposal, before committing to land purchase on the strength of an expected stamp duty refund.

Help and grievance redressal

• Joint Commissioner of Industries (Infrastructure), Office of the Industries Commissionerate: phone 079-23252654 or 079-23252629, email icjciinfra@gujarat.gov.in
• Office of the Industries Commissionerate, Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar 382010 to 079-23252683, 079-23252617, iccord@gujarat.gov.in
• ic.gujarat.gov.in: scheme page, application form, checklist and the industrial park FAQ
• State Level supported Committee, the approving authority for registration, in-principle approval and reimbursement under this scheme