Scheme for Assistance for Industrial Infrastructure

What is the Scheme for Assistance for Industrial Infrastructure?

Scheme for Assistance for Industrial Infrastructure is a Government of Gujarat scheme of the Industries and Mines Department, implemented by the Industries Commissionerate, that supports the development and upgradation of infrastructure serving industrial areas. Introduced under the Gujarat Industrial Policy, the scheme puts public money behind the shared physical assets on which clusters of industrial units depend, internal roads, water supply and distribution, power distribution, drainage and effluent handling, communication networks, common facility centres and worker amenities.

The reasoning behind the scheme is straightforward. A single manufacturing unit can build its own shed, but no single unit can build the approach road, the substation or the common effluent treatment plant that an entire estate needs. Gujarat's answer is to fund an institution. An industry association, a special purpose vehicle, a cooperative body or a government agency — to build that shared layer, and then let individual units allot plots and set up inside.

According to the scheme description published on the Government of India's myScheme platform, assistance runs to up to 80 per cent of eligible project cost, subject to a ceiling of Rs 25 crore, with applications made to the Industries Commissionerate.

The closely related component under the same policy is the Scheme for Financial Assistance to Industrial Parks, notified by Government Resolution No. GID-102020-324968-G dated 1 September 2020, in force from 7 August 2020 for five years to 6 August 2025. Because that scheme's guideline is published in full by the Industries Commissionerate, the sections below draw on it wherever the official text is specific.

Who is eligible and who is not eligible?

Eligible institutions, as defined in the Industries Commissionerate guideline, are any industries association, any enterprise registered under the Societies Act, the Partnership Act or the Companies Act, or a Special Purpose Vehicle constituted for setting up an industrial park. Government agencies and cooperative institutions developing industrial infrastructure also apply under this head.

Basic criteria for an industrial park:

• Minimum area of 20 hectares, reduced to 5 hectares in a Vanbandhu taluka.
• Minimum 10 industrial units in 20 hectares, plus 2 more units for each additional 5 hectares or part. In a Vanbandhu taluka, minimum 5 units in 5 hectares plus 1 unit per additional hectare.
• No execution of work at site and no allotment of plots before registration.
• Main entry road not less than 18 metres for a park up to 50 hectares, and not less than 24 metres above 50 hectares.
• Up to 5 per cent of area may be reserved for worker housing and up to 2 per cent for business-oriented activities related to the park.
• Parks of 50 hectares or more must have fire safety measures and solid waste and sewage treatment and disposal facilities.

Not eligible:

• Individuals seeking a personal benefit. Scheme for Assistance for Industrial Infrastructure has no citizen application, no cash transfer and no subsidy for a household. An individual, firm or company may apply only as the developer of the infrastructure project itself.
• Land and land development cost, which is excluded from eligible project cost entirely.
• External or linked infrastructure. The approach road, the water supply line from the take-off point to the park, the disposal line for treated sewage or effluent, the power supply line from the nearest substation and the storm water drain disposal line. The developer must provide these, but no assistance is available for them.
• Green belt, plantation and open space, which the developer must provide but which do not attract assistance.
• Expenditure incurred outside the operative period of the scheme.
• Institutions availing incentives under another State Government scheme for the same project. Double-dipping is expressly barred.

How much assistance is given and how is it paid?

For industrial parks, the guideline sets the outer limit clearly: the total assistance shall not exceed 60 per cent of total eligible project cost where assistance is availed from both central and state governments, rising to 80 per cent in a Vanbandhu taluka. Where central assistance is received, the state incentive is reduced to that extent.

Assistance is calculated on the prevailing Schedule of Rates of the concerned government department or its undertaking, not on the developer's own estimate.

Disbursement runs in four instalments based on actual expenditure incurred, excluding land cost, at 25, 50, 75 and 100 per cent of sanctioned project cost on infrastructure facilities. From each claim, 15 per cent of eligible assistance is withheld and released only after the park is completed.

Two further entitlements are worth noting. The institution developing the park is eligible for reimbursement of stamp duty paid on purchase of the required land, claimable only after buying the total required land and completing at least 10 per cent of the approved infrastructure. Individual units inside the park can claim stamp duty reimbursement after purchasing their plot. Stamp duty reimbursement does not apply to land given by government, taken on lease, or purchased from government.

For housing for domicile workers, assistance can be claimed once 50 per cent of the sanctioned hostel or dormitory cost has been incurred, with the balance after completion with all amenities.

How to apply for assistance for industrial infrastructure

1. Register the project first. Any individual, firm or public or private limited company intending to set up an industrial park submits an online application for registration on the Investor Facilitation Portal at ifpgujarat.gov.in, uploading proof of constitution, proof of identity, land details with 7/12 and 8A extracts, the proposed layout plan and the project report.
2. Clear document scrutiny. The Industries Commissionerate scrutinises the application and informs the applicant of missing documents within 15 days of receipt.
3. Site verification. The application is forwarded to the General Manager, District Industries Centre, for a site verification report confirming that no infrastructure work has begun at the site. The Industries Commissionerate then issues the Registration Certificate.
4. Purchase 100 per cent of the land, then submit the online application for sanction on the Investor Facilitation Portal with the actual purchased land details, the approved layout plan and a detailed project report with estimates as per the prevailing Schedule of Rates.
5. Present to the screening committee, chaired by the Industries Commissionerate, with 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, as members.
6. Obtain State Level supported Committee approval. After compliance with the screening committee's remarks, the proposal goes to the SLEC, which approves it subject to the terms and conditions of the scheme.
7. Execute the work and file claims. Submit each claim to the concerned District Industries Centre with the checklist documents and the Third Party Quality Assurance certificate. The GM, DIC verifies the claim with a joint inspection team and reports to the Industries Commissionerate, which scrutinises and disburses.
8. File quarterly progress reports to the Industries Commissionerate and the GM of the concerned DIC for as long as the project runs.

How can a developer check the status of a proposal?

• Investor Facilitation Portal at ifpgujarat.gov.in, where the registration and sanction applications are filed and tracked.
• General Manager, District Industries Centre of the district, who holds the site verification report and every disbursement claim.
• Industries Commissionerate, Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar 382 010, for a file at screening committee or SLEC stage.

The joint inspection team that verifies each claim comprises an Executive or Deputy Engineer from GIDC or R&B, a Town Planner or Assistant Town Planner of the district or the area development authority, the Regional Manager of GPCB where applicable, and the General Manager, DIC, as coordinator.

What conditions must the developer keep to?

• Maintain the common infrastructure for at least five years after completion. Failure means the incentives are recovered as arrears of land revenue.
• Appoint a Third Party Quality Assurance agency from the approved list of a central or state government department, board or corporation, and file the TPQA certificate with every subsidy claim.
• Obtain all GPCB clearances in time, design waste water handling at 80 per cent of the water supplied, and use chemical-resistant materials for effluent collection and conveyance.
• Plan for water and power realistically, the guideline suggests 45 litres per person per day and 135 litres per person per day for a factory, and indicative power provision of 100 KVA per hectare, or 150 KVA per hectare for chemical industries.
• Get land converted to non-agricultural use and free of encumbrance, and produce a No Objection Certificate from the District Collector where government land is sought.
• Submit an affidavit undertaking to abide by the guidelines and the sanction conditions.

Non-compliance can lead to cancellation of registration or approval, an order to pay back the assistance and forfeiture of assets under the appropriate law. In any dispute, the decision of the SLEC is final.

What is the current status of the scheme?

The Gujarat Industrial Policy 2020 version of this scheme was in force from 7 August 2020 to 6 August 2025. The Industries Commissionerate now also lists a newer Gujarat industrial policy, under which infrastructure and park assistance continues with revised parameters. Developers planning a project should confirm the applicable policy, the current percentage and ceiling, and the live registration window with the Industries Commissionerate before committing land or capital.

Help and grievance redressal

• Industries Commissionerate, Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar 382 010. Phone 079-23252683 or 079-23252617, email iccord@gujarat.gov.in.
• General Manager, District Industries Centre in the district where the project is located, for site verification and claim issues.
• Investor Facilitation Portal at ifpgujarat.gov.in for online application and single-window clearances.

No fee is payable to the Government of Gujarat for filing a registration or sanction application under this scheme.