Gujarat Scheme for Assistance to Labour Intensive Industries

The Government of Gujarat has launched a scheme entitled “Assistance to Labour Intensive Industries”. Under this scheme, the Government creates separate provisions for the promotion of labour-intensive industries which would lead to the development of the state. This article explains about the Scheme for Labour Intensive Industries in detail.

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Eligibility Criteria

Below-specified entities can apply for the Scheme for Assistance to Labour Intensive Industries:

The incentive provided under the scheme is applicable to new enterprise and for one expansion during the operative period of the scheme.
An enterprise of the following industrial unit or sector which provides the employment to the minimum number of persons as specified against its name of the sector will be eligible.

Industries/units	Number of Persons
Garment, Apparels and made-ups Industry	300 persons
Agro & Food Processing Units	100 persons
Assembling Enterprises with partial manufacturing facilities	100 persons

Any other labour-intensive industries/sector, with the minimum persons needed to be employed by it, as determined by the State Level Empowered Committee from time to time.
The payroll incentive will be eligible only for new or additional Domiciled employees.

Assistance to Eligible Industries/Sectors

Assistance will be given to New enterprise as well as to existing enterprise for one-time expansion.
The payroll incentive will be provided at 1200 per person and an additional amount of Rs. 300 per women employment will be provided under the scheme. In the case of project expansion, this payroll incentive will be provided only for the additional domicile employees.
The payroll assistance in case of project expansion will not be provided for the re-employed person’s who had been relieved by the enterprise/unit within a one-year time frame before the commencement of the production of expansion.
Interest Subsidy will be provided at 7% maximum up to Rs. 1 crore per annum for the period of 5 years.
VAT related incentives: Only 70% of the fixed capital investment of the unit will be considered for the eligible unit that would be entitled to the reimbursement up to 1/5th of the eligible limit in a particular year.

Documents Required

The enterprise will have to submit the below-listed documents for the Sanction of Assistance under the scheme:

Copy of Partnership deed/Memorandum and Articles of Association
Copy of Industrial Entrepreneurs Memorandum(IEM), letter of intent (LOI), Loss of Pay(LOP) and EM I-II
In case of Expansion provide a copy of IEM/LOI/LOP/EM –II for Expendedproject )
Term Loan sanction Letter from Bank/FI
Copy of VAT/CST/Excise Registration
Copy of complete Project Report

The enterprise will have to submit the following documents for the Disbursement of claim:

Registration Number and date has to be issued by the IC office after the approval by State Level Empowered Committee (SLEC)
Copy of Disbursement of term Loan (Bank Statement must include the details of First Disbursement)from the Bank/FI
EPF Registration
Employment Data (Employees Provident Fund (EPF) and Non-EPF)
Copy Land Sale Deed/Lease Deed/Rent Agreement
Copy of Expenditure statement for Plant and machinery has to be provided in the prescribed format
In case of Expansion, the investment made before and after expansion, the CA Certificate with all the details of Investment made in the Fixed Capital Investment has to be submitted
Proof of Commencement of Commercial Production(First Sale Bill/Sanction/Release of Power etc.)
GPCB Noc/Consent/CTE (wherever applicable)
Copy of PAN card of Enterprise
Bank Account Number with IFSC code and Copy of Cancelled Cheque
Other documents if required.

Application Procedure

The unit will have to follow the below procedure to apply for the Scheme for Assistance to Labour Intensive Industries:

Step 1: The enterprise will have to apply to Industries Commissioner in the prescribed format along with the detailed project records for the approval and eligibility registration.

Step 2: For the approval, the application will be scrutinized and will be put up before the State Level Empowered Committee (SLEC).

Step 3: On approval of the SLEC, the registration certificate will be issued to the unit.

The application form can also be downloaded from the official site. The application form for availing Assistance under the scheme for Labour Intensive has been reproduced below in the PDF format for the ready reference.

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Step 4: Upon commencement of the commercial production, the enterprise will apply to the Industries Commissioner for assistance under the scheme.

Step 5: The detailed procedure for the sanction of assistance and disbursement will be laid down by the IC office.

Step 6: The enterprise that has availed assistance under this scheme will not be entitled to avail the benefit under any other scheme of State Government, unless and otherwise specified under that scheme.

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Frequently Asked Questions

Common questions about Gujarat Scheme: Assistance for Labour Intensive Industries.

The Gujarat Scheme for Assistance to Labour Intensive Industries is a scheme launched by the Government of Gujarat to promote and provide incentives to labor-intensive industries in the state. The scheme aims to create employment opportunities and contribute to the overall development of Gujarat.

New enterprises and existing enterprises undergoing one-time expansion in labor-intensive sectors such as garment, apparel, food processing, and assembling industries are eligible to apply for the scheme. The enterprises must employ a minimum number of persons, as specified for their respective sectors.

The scheme offers payroll incentives of Rs. 1,200 per person employed, with an additional Rs. 300 for each woman employed. It also provides an interest subsidy of up to 7% or a maximum of Rs. 1 crore per annum for five years, as well as VAT-related incentives.

In the case of expansion projects, the payroll incentive will be provided only for the additional domiciled employees hired. The incentive will not be applicable to employees who were previously relieved by the enterprise within one year before the commencement of the expansion.

Applicants need to submit various documents, including partnership deeds, memorandums, industrial licenses, loan sanction letters, VAT/CST/Excise registrations, project reports, EPF registrations, land documents, and proof of commencement of commercial production.

Enterprises must first apply to the Industries Commissioner with detailed project records for approval and eligibility registration. After approval by the State Level Empowered Committee (SLEC), a registration certificate will be issued. Upon commencement of commercial production, enterprises can then apply for assistance under the scheme.

Enterprises that have availed assistance under the Gujarat Scheme for Assistance to Labour Intensive Industries will not be eligible to receive benefits under any other scheme of the State Government, unless specifically mentioned otherwise.

The detailed procedure for the sanction and disbursement of assistance will be laid down by the Industries Commissioner's office after an enterprise applies for assistance upon commencement of commercial production.

Yes, the State Level Empowered Committee (SLEC) can revise the minimum number of persons required to be employed by labor-intensive industries or sectors for eligibility under the scheme from time to time.

The article does not explicitly mention a time limit for availing the benefits under the Gujarat Scheme for Assistance to Labour Intensive Industries. However, it states that the incentives are applicable to new enterprises and for one expansion during the operative period of the scheme, suggesting that the scheme may have a specific validity period.