Guj govt mulls financial assistance for infra upgradation

Currently, the state government extends 50 per cent financial assistance (with a ceiling of Rs 10 crore) for developing critical infrastructure in and around GIDC estate. As per the recommendations of the Task Force created by the state government, this limit is likely to be extended up to 80 per cent.

The government is also likely to offer assistance for R&D upto 60 per cent. As per the recommendations, the state industries department will shell out 40 per cent, while the state government and stakeholders will have to contribute 40 per cent and 20 per cent respectively.

As per the recommendations, subsidy linked to employment and backward areas to be decided by empowered committee, will be between 10-12%, if the unit exceed employment beyond numbers as benchmarked by the committee.

The industrial estates will be categorized into three categories. The financial assistance to these will be based on the category in which a particular estate falls.

Also, it has been to make it mandatory for the developer to maintain and repair the project on permanent basis.

Apart from this, the industrial areas which falls in Delhi-Mumbai corridor (DMIC), Special Investment Region (SIR) and Industrial nodes, are expected to be promoted.

The government has worked out a blueprint to develop four industrial area and two SIRs in and out of the DMIC route.

As per the task force's recommendations, in such areas, activities like warehousing, transport facilities, transport hub, water augmentation, networking facility, trauma care center, social infrastructure like hospitals, schools and colleges to name a few, resource center, service corridors, compound walls, technical institutions, business support services to be extended financial assistance subject to maximum 10% of the total project cost.

The state government is working on a plan, under which various industrial parks will be developed on public-private partnership (PPP) model. A joint venture company or Special Purpose Vehicle (SPV) will be formed in the association of an industry partner for each of the parks with the equity participation of GIDC in the form of land.