Scheme for Financial Assistance to Industrial Parks: Infrastructure Facilities

What is the Scheme for Financial Assistance to Industrial Parks?

Scheme for Financial Assistance to Industrial Parks is an incentive scheme of the Industries and Mines Department, Government of Gujarat, notified through Government Resolution No. GID-102020-324968-G dated 1 September 2020 under the Gujarat Industrial Policy 2020. The scheme pays part of the cost of building the shared physical infrastructure inside a privately developed industrial park, so that clusters of manufacturing units get roads, power, water, drainage and communication services without each unit having to build them alone.

According to the Government Resolution, the scheme came into force on 7 August 2020, the date the Gujarat Industrial Policy 2020 was announced, and its stated operative period ran for five years to 6 August 2025. The Industries Commissionerate, Gandhinagar, is the implementing authority, and a State Level supported Committee (SLEC) chaired by the Additional Chief Secretary or Principal Secretary (Industries) sanctions every project.

The scheme replaced an earlier industrial park scheme notified vide GR No. GID-102015-893580(1)-G dated 21 April 2015. Institutions holding an approval under that 2015 resolution were allowed to continue under it, or, if they had taken no incentive and could not finish in time; to move to the 2020 scheme, on the condition that spending before 1 September 2020 would not count as eligible investment.

What counts as an industrial park in Gujarat?

The Government Resolution defines an industrial park as an estate developed on a minimum area of 20 hectares for the establishment of at least 10 industrial units, with 2 more units for every additional 5 hectares or part of it. The estate must offer basic infrastructure such as developed plots, internal roads, water distribution, sewage, power distribution, communication facilities and a hostel for workers.

For a Vanbandhu (tribal) taluka the thresholds are relaxed sharply: a minimum of 5 hectares, at least 5 industrial units, and 1 additional unit for each extra hectare.

Two further points matter for planning. Parks above 100 hectares are supported by the state government with peripheral external-link infrastructure; approach roads, water drawl arrangements, power drawl including a substation, gas and effluent disposal. And parks set up on land allotted by the Gujarat Industrial Development Corporation (GIDC), or on the land of closed textile mills and closed industrial units, are also eligible.

An institution that buys land to develop a park is treated as a bona fide industrial user under the Gujarat Tenancy and Agricultural Lands Laws (Amendment) Act, 1997, which is what allows it to obtain non-agricultural permission and then allot plots or sheds to industrial projects.

Who is eligible for the industrial parks scheme, and who is not?

Who can take the benefit

• Any industries association.
• Any enterprise registered under the Societies Act, the Partnership Act, the Trust Act or the Companies Act.
• A Special Purpose Vehicle (SPV) constituted specifically to set up an industrial park.
• Developers of parks on GIDC-allotted land, or on the land of closed textile mills and closed industrial units.

Who cannot apply or is not eligible

• Individuals seeking a personal cash benefit. This is an institutional infrastructure scheme, not a citizen welfare payment, and there is no individual application route.
• Any project whose execution started before registration was obtained from the Industries Commissioner. The resolution states plainly that a project under execution before registration will not be eligible for any assistance.
• An institution that is already availing assistance for the same park under another State Government scheme, unless that other scheme specifically permits it.
• Expenditure that is ineligible by definition: land purchase and land development, goodwill fees, commissioning fees, royalty, preliminary and pre-operative expenses, capitalised interest, transport vehicles, technical or consultant fees, and working capital.

Individual manufacturing enterprises that set up inside the park are treated separately. They remain free to claim assistance or incentives available to them as individual enterprises under other State Government schemes.

How much money does the scheme give?

Eligible fixed capital investment has three heads. New buildings put up in the park to provide specific infrastructure services to the units count, valued at actual cost or the relevant Schedule of Rates (SOR), whichever the department applies. Other construction covers the boundary wall and related security infrastructure approved by the SLEC. Infrastructure facilities, the head this guide is named for: covers internal roads, the substation used to draw power for the park, power distribution lines, communication facilities, water distribution and augmentation works, sewage and drainage, and common parking.

Hostel and dormitory assistance is separate and needs prior approval of the approving authority before construction. It covers the building plus common facilities such as a canteen, playground, labour welfare centre, child care centre, RO plant and underground utilities.

Where central government assistance is also taken, State and Central assistance together cannot exceed 60% of project cost, or 80% in a Vanbandhu taluka. The state incentive is reduced to keep within that cap, and the institution must inform the Industries Commissioner if it has applied to the Government of India under any scheme.

How to apply for financial assistance to industrial parks

1. Register the proposed park first. The institution that intends to develop the park applies to the Industries Commissionerate, Udyog Bhavan, Gandhinagar, for registration of the proposed industrial park. The Industries Commissioner scrutinises the proposal and issues the registration. Do not start execution before this step, pre-registration work is not eligible.
2. Take 100% possession of the purchased land, then apply to the Industries Commissionerate for sanction of financial assistance, enclosing the Detailed Project Report and the approved layout plan.
3. Wait for SLEC approval. The Industries Commissionerate scrutinises the application and places it before the State Level supported Committee, which approves the project and the quantum of assistance.
4. Appoint a Third Party Quality Assurance agency from the approved or suggestive list of a Central or State government department, board or corporation. A TPQA report has to accompany every claim.
5. Build and claim in stages. Submit claims in the prescribed proforma issued by the Industries Commissionerate. Disbursement happens in four instalments linked to expenditure of 25%, 50%, 75% and 100% of project cost, and 15% of the sanctioned assistance is released only after the park is complete.
6. Claim stamp duty reimbursement once the entire required land is purchased and at least 10% of the SLEC-approved infrastructure is built.

Forms, checklists, procedure and detailed guidelines are prescribed by the Industries Commissionerate, so the current formats should be collected from ic.gujarat.gov.in or the Commissionerate office before filing.

What are the deadlines and completion conditions?

An SLEC-approved industrial park must be completed within 3 years from the date of the sanction letter. The SLEC may grant an extension of up to 1 more year on the merit of the reasons for delay.

After completion, the developing institution must manage, maintain and operate the common infrastructure for a minimum of 5 years. It must also provide plots at a concessional rate reflecting the incentive received, and submit allotment price details to the Industries Commissionerate.

Failure on either count has the same consequence: incentives already disbursed, including the stamp duty reimbursed, are recovered as arrears of land revenue under the land revenue laws.

Why applications get rejected or held up

• Work started before registration. The single most common disqualifier, and it cannot be cured retrospectively.
• Land possession incomplete. The sanction application is only entertained after 100% possession of the purchased land.
• Ineligible items claimed. Land cost, consultant fees, pre-operative expenses and working capital are routinely struck out of claims.
• No TPQA report attached to a claim instalment.
• Double-dipping. Assistance for the same park under another state scheme, or central plus state assistance breaching the 60% (or 80%) project cost cap.
• Hostel built without prior approval, which makes the 25% dormitory assistance unavailable.

Where to raise a query or grievance

Queries on registration, sanction and claims go to the Industries Commissionerate, Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar 382 010, telephone 23252683 / 23252617, email iccord@gujarat.gov.in. The Commissionerate publishes the Industrial Policy 2020 resolutions, including this one, at ic.gujarat.gov.in.

Because the operative period stated in the resolution ended on 6 August 2025 and the Industries Commissionerate has published a Viksit Gujarat Industrial Policy 2026 on the same site, any institution planning a new park should confirm in writing which resolution its project will be assessed under before it spends money. Registration and sanction are free; no agent can charge to "get an approval" from the SLEC.