Scheme for Financial Assistance to Integrated Logistics Facilities: Interest Subsidy

What is the Integrated Logistics Facilities interest subsidy?

Scheme for Financial Assistance to Integrated Logistics Facilities is an incentive of the Industries and Mines Department, Government of Gujarat, notified under the Gujarat Integrated Logistics and Logistics Park Policy 2021 through Government Resolution No. GID-102021-560-I-1 dated 31 July 2021. The scheme came into force on 2 August 2021 and runs for five years, up to 1 August 2026. The Industries Commissionerate administers it.

The scheme is an umbrella with four components: capital subsidy, interest subsidy, reimbursement of stamp duty, and exemption of electricity duty. This page covers the interest subsidy, which reduces the cost of the term loan a developer raises to build warehouses, storage yards, cold chains and the supporting infrastructure of a logistics park.

According to the revised guideline published by the Industries Commissionerate, the interest subsidy is calculated on the amount actually disbursed against the sanctioned eligible term loan, and it also covers interest repaid during the moratorium period. The stretch before principal repayment begins, when a project has no revenue but is still servicing interest. That single provision is what makes the component useful, because warehousing projects typically take two to three years from term loan drawdown to first rental income.

The percentage rate and the annual ceiling are set out in GR No. GID-102021-560-I-1 itself, which the Industries Commissionerate publishes as a scanned resolution. Applicants should read the quantum directly from that GR or confirm it in writing with the Commissionerate before building a financial model around it.

Who is eligible for the logistics interest subsidy?

Conditions that must be met

• The applicant is a private developer of an integrated logistics facility or logistics park in Gujarat.
• Only a new unit or project qualifies.
• The date of first disbursement of the term loan falls inside the operative period of the scheme.
• The term loan is from a bank or financial institution. A loan from a Non-Banking Financial Company is not an eligible term loan.
• The loan is used for gross fixed capital investment in the project, or is equivalent to it.
• Where land is leased or rented, there is a registered deed of at least 10 years between the developer and the land owner.
• The developer follows the Common GDCR norms for planning and development.

Who cannot apply or is not eligible

• Individuals, transport operators, truck owners and warehouse workers cannot apply. There is no personal benefit component in this scheme.
• An existing facility, or a project refinancing an old loan, is not eligible, the guideline restricts the subsidy to new units and projects.
• A developer declared a defaulter under RBI guidelines is not eligible for the default period.
• A period in which principal repayment is outstanding for 90 days or more is not eligible, even if interest was paid in that window.
• A developer who uses the logistics facility captively, or sells or transfers it to another entity instead of leasing it out, loses eligibility.
• A project availing incentives under any other State Government scheme cannot claim under this scheme.

Ineligible expenditure

Land purchase and land development, goodwill fees, commissioning fees, royalty, preliminary and pre-operative expenses, capitalised interest, technical or consultant fees, working capital, and green belt and plantation costs are all excluded from eligible fixed capital investment.

What documents are required?

How to apply for the logistics interest subsidy

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 under the scheme with the checklist documents. The Commissionerate flags missing papers, then sends the file to the General Manager, District Industries Centre, for a site visit and inspection report.
3. Collect the registration certificate issued by the Industries Commissionerate on the strength of that inspection report.
4. Take possession of the land, get the layout plan approved, prepare the DPR with SOR estimates and get the term loan sanctioned, all four are preconditions for the sanction application if you want interest subsidy.
5. File the application for sanction with the full checklist and present the project to the screening committee chaired by the Industries Commissioner, whose members include the Joint Commissioner of Industries (Infrastructure), the Chief Engineer of GIDC, the Senior Town Planner from the CTP office, a Deputy or Joint Secretary of IMD and the General Manager of GIDB.
6. Receive the sanction letter from the Sanctioning Authority or SLEC after the committee's remarks are complied with.
7. File the annual interest subsidy claim in the prescribed form at the Industries Commissionerate head office, attaching the checklist documents, the Annexure-A and Annexure-B bank certificates for each loan account, the employment details and the affidavit.

How to apply offline

1. Download the registration checklist, application form and affidavit from the Industrial Policy 2020 page of ic.gujarat.gov.in and submit the set to the Industries Commissionerate, Udyog Bhavan, Gandhinagar.
2. After the DIC site inspection and registration, submit the sanction application form, checklist and affidavit to the same office.
3. Submit each interest subsidy claim in original at the head office, with the leased-out facility details and employment details also going to the District Industries Centre as the checklist directs.

How are interest subsidy claims calculated?

The Commissionerate's claim instructions set out the timing rules clearly. Claims run on an annual basis. If the first claim period begins on 10 November 2022, that claim covers 10 November 2022 to 9 November 2023, and every later claim follows in the same twelve-month rhythm.

Where a developer has more than one term loan, the first claim period is counted from the earliest first-disbursement date among all the loans, and the first claim for every loan is made for that same period. For example, if term loan 1 was first disbursed on 1 January 2021 and term loan 2 on 5 June 2021, the first claim period is 1 January 2021 to 31 December 2021; loan 1 is claimed for the full period and loan 2 from 5 June 2021 to 31 December 2021.

A separate Annexure-A and Annexure-B bank certificate must be filed for each loan account. More than one annual claim can be submitted under a single application form, but each claim period still needs its own set of certificates, and all documents must be certified by the developer and submitted in original.

Common reasons an interest subsidy claim fails

• Loan from an NBFC. Only banks and financial institutions count as sources of an eligible term loan.
• Wrong claim period. Claims must follow the annual cycle from the earliest first-disbursement date, not the financial year.
• Missing Annexure-A or Annexure-B for one of several loan accounts.
• A 90-day principal default inside the claim period, which knocks out that stretch even if interest was serviced.
• Photocopies instead of originals. The claim instructions require certified documents and prescribed-format certificates in original.
• Captive use of the warehouse, or sale or transfer of the facility, which breaches the leasing condition.
• No TPQA certificate, or one from an agency outside the approved or suggestive list of a central or state department, board or corporation.
• Another state incentive already availed for the same project.

Key dates and conditions

• 31 July 2021 — GR No. GID-102021-560-I-1 issued.
• 2 August 2021, scheme comes into force.
• 1 August 2026: end of the five-year operative period.
• Eligible fixed capital investment means capital investment in fixed assets, excluding land cost, made on or after 2 August 2021.
• The developer must manage, maintain and operate the project for 7 years from the date of commencement of operations under the 2025 revised guideline; the earlier 2024 guideline stated 5 years, so read the version applicable to your sanction letter.
• Combined central and state assistance must not exceed 60% of eligible project cost.

Where to get help and how to raise a grievance

• Investor Facilitation Portal helpline: 1800 233 1847, working days, 10:30 am to 6:10 pm, for portal registration, login and application problems.
• Industries Commissionerate: Udyog Bhavan, Sector 11, Gandhinagar 382010, the sanctioning and disbursing office for this scheme.
• General Manager, District Industries Centre: handles site inspection, annual visit reports and the district-level parts of the claim file.
• The IFP contact page at ifp.gujarat.gov.in lists the current helpdesk contacts.

Where a developer and the department disagree, the guideline states that the decision of the Sanctioning Authority or SLEC is final. The Sanctioning Authority can also withdraw an approval already given if the conditions of the GR, the guideline, the registration or the sanction letter are breached.