Agro Business Policy 2016 - 2021

Vision

The Government of Gujarat has decided to come out with "Comprehensive Agro Business Policy 2016-21" as successor of the erstwhile Agro Industrial Policy. In consideration of the importance of Agriculture and Food Processing in the overall development of State and its contribution in GSDP

Gujarat Agro Industries Corporation Ltd has been appointed as State Nodal Agency by GoG to implement various schemes under "Comprehensive Agro Business Policy 2016-21".

As part of the policy, eligible Agro & Food Processing units and Infrastructural projects can get financial assistance under various schemes mentioned hereunder.

Policy Operative Period:- 2016 to 2021

Policy Features:

Capital Investment Subsidy

  • Agro & Food Processing units can avail financial assistance in the form of capital investment subsidy of 25% of the cost of Plant & machinery and technical civil works, subject to maximum amount of Rs. 50 Lakh. .
  • Cold Chain, Food Irradiation Processing Plants and Pack Houses can avail financial assistance in the form of capital investment subsidy of 25% of the cost of Plant & machinery and technical civil works, subject to maximum amount of Rs.500 Lakh
  • Primary Processing Centers/Collection Centers in Rural areas can avail financial assistance in the form capital investment subsidy of 25% of the cost of Plant & machinery and technical civil works, subject to maximum amount of Rs. 250 Lakh.
  • Reefer Vans can avail capital investment subsidy of 25% of the cost of New Reefer Vehicle(s) up to a maximum of Rs.50 Lakh.

Back Ended Interest Subsidy

  • Agro and Food Processing Units can avail back ended interest subsidy of 7.5% on the term loan, for setting up/expansion & diversification/modernization of the unit, for maximum amount of Rs. 150 Lakh.
  • Agro and Food Infrastructural Projects can avail back ended interest subsidy of 7.5% on term loan for setting up infrastructure project in agro & food processing sector such as cold storages, food irradiation processing plants, silos, pack houses, food parks, reefer vans etc., for maximum amount of Rs.400 lakh.
  • Additional 1% back ended interest subsidy will be given to units with 100% ownership of SC/ST, persons with disabilities or women entrepreneurs.
  • Entrepreneurs with age below 35 years will be given 1% additional back ended interest subsidy on term loan.
  • The subsidy will be provided for a period of 5 years

Air & Sea Freight Subsidy to MSME units only

  • Assistance of 25% of actual Air-Freight paid by any legal entity subject to maximum amount of Rs. 10 Lakh per year per unit will be granted for exporting any fresh or processed agro/horticulture, milk, honey, plants, poultry or fish produce or 40% of actual air-freight paid subject to maximum amount of Rs. 15 Lakh per year per unit for exporting organic produce.
  • If samples are required to be sent in foreign country for exporting edible agro products and expenditure is incurred for getting sample passed for export of edible agro article, assistance of 25% of actual legal expenditure (except expenditure incurred for purpose of travelling etc.) incurred on it shall be granted limited to Rs.2 Lakh per year and maximum up to Rs.5 Lakh.
  • Assistance of Sea Freight Subsidy will be provided to eligible entities of 25% of actual Sea-Freight paid. The subsidy will be provided for a period of 5 years and maximum amount of Rs. 10 Lakh per year per unit for exporting any fresh agro/ horticulture produce.
  • Assistance of Sea Freight Subsidy will be provided to eligible entities of 40% of actual Sea-Freight paid. The subsidy will be provided for a period of 5 years and maximum amount of Rs. 15 Lakh per year per unit for exporting organic fresh agro/horticulture produce.

The Air/Sea freight subsidy will be provided for a period of 5 years

Incentive for getting Quality Certification Mark to MSME units only

  • Assistance of 50% of the expenditure incurred by institute/entrepreneur will be granted for obtaining certification mark maximum up to Rs.5 Lakh.
  • Assistance of 50% of the fee payable to recognized international certification authority and of 50% cost of testing equipment & machinery required for that certification totaling up to maximum amount of Rs.10 Lakh.

Incentive for Skill Enhancement to MSME units only

Assistance of 50% of the expenditure incurred by institute/entrepreneur for industry recognized skill certification for their employees through training and development programs from recognized Government/Private Institutes maximum up to Rs. 10,000/- per employee for ceiling of Rs.50,000 per year per unit for a period of 3 years.

Incentive on Power Tariff and Electricity Duty

  • Assistance to Agro & Food Processing units and Infrastructural projects will be given of, power tariff subsidy at the rate Rs. 1 per unit in the billed amount of the utility for a period of 5 years.
  • Agro & Food Processing units and Infrastructural projects will be given 100% reimbursement for electricity duty paid for a period of 5 years.

Registration/Stamp Duty Concession

  • Agro & Food Processing units will be reimbursed of 50% of Stamp Duty/Registration Fee/Conversion Fee/paid on sale/lease/Transfer of land.
  • For setting up of Agro & Food Infrastructural projects will be reimbursed of 100% of Stamp Duty/Registration Fee/Conversion Fee/paid for setting up infrastructure projects.

For more information please visit: https://agri.gujarat.gov.in

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