State Profile of Gujarat

• Comprehensive Agro Business Policy (2016)

• Gujarat Agro Industries Corporation Ltd. shall be State Nodal Agency for implementation of the scheme under the GR.

• Single Window System (www.incometaxgujarat.org/single-window-clearance-cell/)

Incentive on Power Tariff and Electricity Duty:

• Agro and Food Processing units and Infrastructure Projects will be given power tariff subsidy at the rate of Re. 1 per unit in the billed amount of the utility as promotional incentive on reimbursement basis for a period of five years with effect from the commencement of commercial production/ rendering services

• Agro and Food Processing units and Infrastructure Projects will be given 100 % reimbursement for electricity duty paid for a period of five years on coterminous basis with power tariff subsidy.

Assistance of Capital Investment Subsidy for Agro and Food Processing Units.

• Assistance of Capital Investment Subsidy for Agro and Food Processing Units with Capital Investment Subsidy @ 25% of eligible project cost subject to maximum Rs. 50.00 lakhs for setting up/expansion & diversification/modernization

Assistance of Capital Investment Subsidy for Cold Chain, Food Irradiation Processing Plants

• Assistance of Capital Investment Subsidy for Cold Chain, Food Irradiation Processing Plants and Pack Houses with Capital Investment Subsidy @ 25% of eligible project cost subject to maximum Rs. 500.00 lakhs.

Assistance of Capital Subsidy for Creating Primary Processing Centers / Collection Centers in rural areas.

• Assistance of Capital Subsidy for Creating Primary Processing Centers / Collection Centers in Rural Areas with Capital Investment Subsidy @ 25% of eligible project cost subject to maximum Rs. 250.00 lakhs

Assistance of Capital Subsidy for reefer vehicle.

• Assistance of Capital Subsidy for Reefer Vehicles Capital with Investment Subsidy @ 25% of eligible project cost subject to maximum Rs. 50.00 lakhs

Assistance of Back Ended Interest Subsidy on the Term Loan for Agro and Food Processing Units

• Back Ended Interest Subsidy @ 7.5% on the Term Loan with maximum amount of Rs. 150.0 Lakhs for a period of 5 years for setting up/ expansion & diversification/ modernization of Agro and Food Processing Units.

Assistance of Back Ended Interest Subsidy on Term Loan for Agro and Food Infrastructural Projects.

• Back Ended Interest Subsidy @ 7.5% on Term Loan with maximum amount of Rs. 400.0 Lakhs for a period of 5 years for Setting up Infrastructure Project in Agro & Food Processing Sector such as CA Cold Storages, Food Irradiation Processing Plants, Silos, Pack houses, Food Parks, Reefer Vans etc.

Additional Back Ended Interest Subsidy on Term Loan.

• Additional Back Ended Interest Subsidy on Term Loan.

  • 1% additional interest subsidy to SC/ST, physically challenged

  • 1% additional interest subsidy to entrepreneurs below 35 years age

Reimbursement of VAT

• The eligible Agro and Food Processing units and infrastructure projects will be provided reimbursement of net tax (net of input credits) paid by them under Section-13 of Gujarat Value Added Tax Act against their output tax liability. The reimbursement will be limited to a ceiling of 70% of the eligible fixed capital investment made by the unit.

• Registration/Stamp Duty Concession:

  The Agro and Food Processing units will be eligible for 50% reimbursement of Stamp Duty/Registration Fee/Conversion Fee paid on sale/lease/transfer of land and 100% reimbursement of Stamp Duty/Registration Fee/Conversion Fee paid for setting up for infrastructure projects in agro and food processing sector.

Skill Enhancement

• Assistance will be provided to Agro and Food Processing units/infrastructure projects at the rate of 50% of fee paid, subject to a maximum Rs. 10,000 per employee on obtaining industry-recognized skill certifications from recognized institutions (both Government and Private Institutions). The assistance under this incentive will be subject to an overall ceiling of Rs. 0.5 lac per year per unit maximum for a period of three years (MSME only)

Scheme for Financial Assistance for Air- Freight Subsidy

• In view of the globalization trend, it is essential to encourage exports of agro and processed food products from the State. Considering this aspect in mind, assistance of 25% of actual air freight paid by any legal entity subject to maximum Rs. 10.00 Lakhs per year per unit will be granted for export of any fresh or processed horticulture, milk, poultry or fish produce or 40% of actual air freight paid max Rs. 15.00 Lakhs per year per unit for 5 years for Organic produce from cargo complex at Ahmedabad International Airport

Scheme for Financial Assistance for Sea- Freight Subsidy

• In view of the globalization trend, it is essential to encourage exports of agro and processed food products from the State. Considering this aspect in mind, assistance of 25% of actual sea freight paid by any legal entity subject to maximum Rs. 10.00 Lakhs per year per unit will be granted for export of any fresh horticulture produce or 40% of actual sea freight paid subject to maximum Rs. 15.00 Lakhs per year per unit for Organic Fresh Horticulture produce from cargo complex of Gujarat State. This subsidy shall not be granted for more than five years per unit

Scheme for Financial Assistance for Freight Subsidy

• Benefits under this scheme will be available to MSME units only.

Quality Certification Mark:

• MSME agro units are required to obtain quality certification mark for export purpose.

• For this 50% (maximum of Rs.5/- lakh) assistance of expenditure incurred by institute/ entrepreneur will be granted for obtaining certification mark from institute approved by Quality Council of India such as ISO/ HACCP/ FSSAI/ FPO mark/ India Organic certification mark/ Agmark etc. Such assistance will be paid after having received certificate for Certification Mark.

• 50% of fee payable to recognized International Certification Authority and 50% cost of testing equipment & machineries required for that certification totaling upto maximum amount of Rs. 10.0 lakhs.