Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries: Assistance of Interest Subsidy

DETAILS The "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic mega-industry sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2032, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat." The component "Assistance of Interest Subsidy" offers a fixed quantum of interest subsidy for new industrial setups or expansion projects, facilitating industrial investments and encouraging economic development. BENEFITS Substantial Interest Reduction: Interest Subsidy: @7% on the term loan. Capped Amount: A maximum of 1.2% of eligible fixed capital investment per annum for 10 years. ELIGIBILITY The mega industry must operate as a manufacturing unit. The unit must have a minimum investment of INR 2,500 crore in plant and machinery. The unit must provide direct employment to at least 2,500 persons. The unit must belong to one of the thrust sectors as defined in the Guidelines (Refer Page No. 9). New industrial units or expansion projects are eligible. Units must avail of term loans for fixed capital investment from recognized financial institutions. The unit must bear at least 2% interest on term loans, even if availing of other subsidies. Units must ensure regular repayment of loan installments.