Gujarat announces payroll assistance scheme for labour intensive units

As part of its industry policy, the Gujarat government has now announced payroll assistance scheme for male and female employees of labour intensive units in the state. Under the scheme, the state will support units operating in the labour intensive sectors such as textiles, agro processing, and assembly units.

Announcing the scheme, Saurabh Patel, minister of finance and industries, Government of Gujarat stated that the scheme will be applicable to only those units which are registered under the Employees' Provident Fund Organisation (EPFO). The monthly assistance will be around Rs 1200 per person for male employees and Rs 1500 for female employees for a period of five years.

According to Patel, the scheme will look to not only boost employment but also handhold MSME units in their operations. The scheme, as part of the industrial policy, will see Gujarat government providing provide pay-roll assistance for male and female employees of a unit. Units employing 300 in case of garment and 100 in case of agro processing and assembling units each.

As of now, the state government has identified three sectors as labour intensive namely, garment, apparel and made-ups, agro and food processing and assembly enterprises.

The government has also announced 7 per cent or up to Rs 1 crore interest assistance on loan for these units. Moreover, the state government will also provide units refund of their net tax payments upto 70 per cent for a period of five years.

Looking to boost investment in plastics sector and make the most of easy availability of polymer in the state, the government has also announced plastics industry as focus sector.

As part of this, Patel announced 7 per cent or up to Rs 1 crore interest assistance on loans for plastics units which procure raw materials from within the state.

"This will encourage value-addition of the raw material available in the state and boost investment in the industries that consume locally available raw materials," said Patel.