Govt announces new Manufacturing Policy

The new Manufacturing Policy, which aims to promote investments in five non-traditional sectors, was announced by the state government in the assembly on Monday. The policy offers interest subsidy, assistance for core infrastructure development, among others for investors.

The policy was slated to be announced in January, but the announcement was put off as the assembly session had been convened. DNA was the first to write about the impending announcement in its edition dated January 24, 2013.

The policy covers five sectors, viz. automobiles and auto components, solar & wind equipment manufacturing, specialty & fine chemicals, electronic system design & manufacturing, and food & agro business.

“The Manufacturing Policy is aimed at increasing share of manufacturing in the Gross State Domestic Product (GSDP) from the current 27.6% to 32% by 2017. This will also help in creating a large number of jobs,” energy & petrochemicals minister, Saurabh Patel, announced in the assembly.

“Gujarat has emerged as a favoured investment destination in recent years. The idea is to focus on non-core sectors, which will help the state achieve better balanced growth,” a senior official said.

The policy envisages 7 per cent interest subsidy to MSME units, and 2 percent interest subsidy for large units with investment of up to Rs100 crore, for five years. The maximum annual subsidy payable will be Rs25 lakh for smaller units and Rs50 lakh for large units. Under the policy, the state government will provide assistance for core infrastructure development. The government will provide assistance of 50% of Rs20 crore, whichever is lower, for internal roads, water supply, electrification, and telecommunications in industrial parks.

The government will provide funds for setting up of common facility for developing new technologies/processes, and for testing of raw and finished goods. The government will provide assistance of 80% of the total cost or Rs10 crore, whichever is lower. The policy also envisages assistance for Common Effluent Treatment Plant (CETP), and for setting up Centres of Excellence.

For national-level Centre of Excellence, the government will provide 70% of the total cost (maximum assistance Rs20 crore). In the case of international standards’ Centre, the maximum assistance will be Rs30 crore.