Scheme for Financial Assistance to Integrated Logistics Facilities: Capital Subsidy

What is the Scheme for Financial Assistance to Integrated Logistics Facilities?

The Scheme for Financial Assistance to Integrated Logistics Facilities is a capital 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, as notified, remains in operation for five years, up to 1 August 2026.

The scheme is administered by the Industries Commissionerate at Udyog Bhavan, Gandhinagar. Its purpose is narrow and specific: it pays money to private developers who build integrated logistics infrastructure in Gujarat and then lease that infrastructure out to cargo owners, transporters and freight operators. It is not a citizen welfare scheme and there is no personal benefit attached to it.

The GR sets out several assistance components; capital subsidy, interest subsidy, stamp duty reimbursement, electricity duty exemption, patent assistance, quality certification support, skill development support and technology assistance. This guide covers the capital subsidy component, which is the largest single benefit in the package.

Why Gujarat created the scheme. The GR's own preamble records that Gujarat has a 1,600 km coastline with 1 major and 48 non-major ports, handles about 40% of India's cargo amounting to over 514 million metric tonnes, and that nearly 560 km of the Western Dedicated Freight Corridor passes through the state. Gujarat ranked first in the Ministry of Commerce and Industry's Logistics Ease Across Different States (LEADS) index in both 2018 and 2019. The scheme is meant to keep that lead by getting private capital into warehousing, container handling and cold chain assets.

How much capital subsidy does the scheme pay?

The Scheme for Financial Assistance to Integrated Logistics Facilities pays:

• 25% of Eligible Fixed Capital Investment (EFCI), subject to a maximum of Rs 15 crore, for a logistics facility or logistics park.
• 25% of EFCI, subject to a maximum of Rs 15 crore, for development of new jetties.

Only a new unit or project qualifies for capital subsidy. Eligible Fixed Capital Investment means capital investment in fixed assets, excluding land cost, made on or after 2 August 2021 and up to the date of completion of the scheme.

What counts inside EFCI

• New buildings constructed or newly acquired and unused buildings for the project, including buildings for plant and machinery, R&D, storage and administration.
• Other construction such as compound walls, gates, security cabins, internal roads, power distribution, a sub-station with feeder, water distribution with a water tank, gas lines, sewage and drainage lines, fire safety facilities and communication facilities.
• New plant and machinery, including transportation, foundation, erection, installation and electrification costs. Imported second-hand plant and machinery with a certified remaining usable life of at least 10 years also counts.
• Material handling equipment and vehicles used only inside the project premises, pollution control plant, non-conventional energy plant, captive power or co-generation plant, and diesel generating sets up to 50% of the connected electric load or 25 MW, whichever is less.
• Project-related infrastructure: worker and staff facilities (but not housing or dormitories), roads from the nearest approach road, dedicated water and gas pipelines from source, non-refundable deposits paid to the electricity company, and telecom or network cabling.

What is excluded from EFCI

• Purchase of land and land development.
• Goodwill fees, commissioning fees, royalty, preliminary and pre-operative expenses.
• Capitalised interest, technical or consultant fees and working capital.
• Green belt, plantation and open space expenditure, these must be provided but are not reimbursed.
• Old buildings, building repairs, and buildings taken on lease or rent other than GIDC sheds.

Which logistics facilities qualify?

The GR defines a wide set of eligible facility types:

• Logistics parks and multi-modal logistics parks offering cargo aggregation and segregation, distribution, inter-modal transfer, open and closed storage, temperature-controlled storage, customs bonded warehousing, material handling equipment and parking.
• Inland Container Depots and Container Freight Stations; off-port facilities handling laden import and export containers under customs control.
• Air Freight Stations and Air Cargo Complexes.
• Private Freight Terminals, both greenfield and brownfield, notified under the PFT policy.
• Cold Chain Facilities, including controlled and modified atmosphere chambers, variable humidity chambers, individual quick freezing, blast freezing and minimal processing centres.
• Warehouses, truck terminals and silos.
• Non-captive private jetties built on BOT basis with Gujarat Maritime Board permission.

Who is eligible for the capital subsidy and who is not eligible?

Eligible to apply

• A legal entity registered as a proprietorship, partnership firm, Limited Liability Partnership, cooperative society, company under the Companies Act, trust or NGO.
• Developers of new units or projects that commence operations during the scheme's operative period.
• Developers who hold the land by purchase, or on a registered lease or rental deed of at least 10 years between the developer and the land owner.

Not eligible / cannot apply

• Individual citizens seeking a personal grant. The scheme has no individual beneficiary route at all.
• Existing units or projects that commenced operations before the scheme's effective date, they cannot claim capital subsidy, though some components such as patent, quality certification and technology assistance are open to existing units.
• Developers who intend captive use. Facilities must be leased or rented out; captive use, sale or transfer to another unit disqualifies the project.
• Projects already drawing another Gujarat state incentive for the same investment. The developer must exercise an option between schemes.
• Projects that began execution or allotment before registration is granted.

What are the conditions attached to the subsidy?

The revised guideline issued by the Industries Commissionerate imposes several operating obligations:

1. The developer must follow Common GDCR norms for planning and development.
2. Water supply, power supply, sewage and effluent disposal, fire safety and pollution control arrangements must meet competent authority standards.
3. Environmental and all other statutory clearances must be obtained where applicable.
4. Basic facilities including toilets and a rest area for transport vehicle drivers must be provided.
5. The facility must be managed, maintained and operated for a minimum of seven years from the Date of Commencement of Operations.
6. At least 85% of total employees and 60% of managerial and supervisory staff must be persons domiciled in Gujarat, maintained permanently.
7. Employment information must be furnished to the Industries Commissioner within 60 days of the close of each financial year.
8. A TPQA certificate must accompany every subsidy claim.

How to apply for the Integrated Logistics Facilities capital subsidy

The route is institutional and offline. There is no citizen portal login.

1. File the registration application. Submit the prescribed application form for registration to the Industries Commissionerate, along with every document on the published checklist; proof of constitution, PAN, land records, village map, proposed layout certified by an approved civil engineer or architect, and the notarised affidavit. Do not start site execution before registration; work begun earlier is not eligible.
2. Get scrutiny and a site inspection. The Industries Commissionerate scrutinises the file and tells the applicant what is missing. A complete file is forwarded to the General Manager of the concerned District Industries Centre for a site visit and inspection report, after which the Registration Certificate is issued.
3. Assemble the sanction prerequisites. Before applying for sanction the developer must hold registration, possession of the land by purchase or lease, an approved layout plan from the competent authority, a Detailed Project Report with component-wise estimates as per the prevailing SOR, and; if the interest subsidy is also wanted — a sanctioned term loan.
4. File the sanction application in the prescribed form with the sanction checklist and affidavit.
5. Present the project to the Screening Committee, chaired by the Industries Commissioner, with the Joint Commissioner of Industries (Infrastructure), the Chief Engineer of GIDC, the Senior Town Planner from the CTP Office, the Deputy or Joint Secretary of the Industries and Mines Department and the GM of GIDB as members. Comply with any remarks the committee raises.
6. Obtain approval from the Sanctioning Authority / State Level supported Committee, which is chaired by the ACS or Principal Secretary, Industries and Mines Department, with the Industries Commissioner as Member Secretary.
7. File the capital subsidy claim at the District Industries Centre using the claim checklist; application form, CA certificate for expenditure, expenditure statements A1 to A4, chartered engineer certificate for cost as per SOR, TPQA certificate, project completion certificate, details of logistics facilities leased out, employment details and the claim affidavit.
8. Joint inspection and disbursement. The GM of the DIC verifies the claim and reports to the Industries Commissionerate with the recommendation of a joint inspection team comprising an Executive or Deputy Executive Engineer from R&B, the Regional Officer of GPCB and the GM of the DIC. The Commissionerate then releases the eligible amount.

How is the money released across the project?

Assistance is claimed phase-wise in four instalments, based on actual expenditure excluding land cost, at 25%, 50%, 75% and 100% of the sanctioned project cost in eligible fixed capital investment. From every claim, 15% of the eligible assistance is withheld and released only after the project is complete. Before any disbursement, the Industries Commissioner arranges asset verification of the project.

For reference, the sibling components under the same GR are: interest subsidy at 7% on term loan up to Rs 50 lakh per annum for seven years (with the developer bearing at least 2% interest); 100% reimbursement of stamp duty paid to the Government of Gujarat, claimable after buying all required land and completing at least 40% of construction; 100% exemption of electricity duty for five years; patent assistance up to 70% of cost subject to Rs 25 lakh; quality certification support at 50% up to Rs 10 lakh; skill development reimbursement of up to Rs 15,000 per trainee for over 120 hours of training, capped at 30 trainees a year; and technology assistance of up to 50% of cost subject to Rs 50 lakh one time.

Why claims get rejected or delayed

• Application filed with an incomplete checklist. The guideline states plainly that incomplete or discrepant applications will not proceed and may be rejected outright at both registration and sanction stages.
• Work started before registration. Site execution before the Registration Certificate is issued disqualifies the expenditure.
• Missing TPQA certificate with a claim.
• Estimates not built on the prevailing SOR of the relevant government department, so the eligible cost cannot be worked out.
• Land held without a registered 10-year lease where the land is not owned.
• Captive use or sale of the developed facility, which the guideline treats as making the project ineligible.
• Another state incentive already availed for the same project.
• Local employment percentages not maintained, which triggers recovery of subsidy as arrears of land revenue.

Key dates to know

• 31 July 2021; Government Resolution No. GID-102021-560-I-1 issued.
• 2 August 2021: scheme comes into force; investment made on or after this date counts towards EFCI.
• 1 August 2026; end of the five-year operative period as notified.
• A revised guideline for the scheme was published by the Industries Commissionerate in 2025, together with updated claim checklists for capital subsidy, stamp duty, interest subsidy and electricity duty exemption.

The GR also provides that the SLEC will review the scheme two years after issue and may amend it in consultation with the Finance Department. Because Gujarat has since released the Viksit Gujarat Industrial Policy 2026, developers should check ic.gujarat.gov.in for any extension, replacement or transitional arrangement before committing to a project on the strength of this scheme alone.

Where to raise a query or grievance

• Office of the Industries Commissionerate, Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar 382 010, Gujarat. Phone 23252683 / 23252617.
• General Manager, District Industries Centre of the district where the project is located. The first stop for claim verification and site issues.
• The GR provides that any dispute over interpretation goes to the sanctioning committee, and that the committee's decision is final and binding.