Scheme for Financial Assistance to Logistic Parks

The Gujarat Government has introduced a scheme for “Assistance to Logistic Parks” mainly to promote and encourage Logistic Park by Private Institutions. This scheme aims at upgrading and improving state infrastructure and to promote ease of doing business. Under this scheme, the Government grants financial assistance for setting up of new Logistic Parks that leads to improving the economic activity and employment generation within the state. This article examines the Scheme for Financial Assistance to Logistic Park in detail.

Objectives

The objectives of the scheme are given below:

To enable the industrial clusters to address their comprehensive infrastructural needs
To promote Logistics Service and improve storage capacity within the State
To encourage the Private Institutions
To extend support to maintain the competitiveness of enterprises
To coordinate all efforts of the company to maintain a cost-effective flow of goods
To move the inventory in a supply chain effectively and efficiently.

Quantum of Assistance

By this scheme, the assistance amount will be given to the private industrial park developer for the industrial infrastructure development within the area of the industrial park.

The new logistics park within the state will be provided with the incentives at 25% of the Fixed Capital Investment in building and infrastructure facilities which are eligible (except land cost, transport vehicles and other ineligible expenses) would be maximum of Rs.15 crores.
The Developer of the logistics park is eligible for the reimbursement at 100% of stamp duty paid on the purchase of land as required for the project approved by the State Level Empowered Committee (SLEC)
The assistance amount is fixed by the SLEC will be given directly to Gujarat Industrial Development Corporation (GIDC). Then the GIDC will subsequently pass on the assistance to the concerned developer.

Infrastructural Facilities

The following are the Cost Infrastructure facilities that are provided under the scheme are listed below:

Internal roads
Power Distribution System
Communication facilities
Water Distribution System and Water Augmentation facilities
Sewage and drainage system facilities
Effluent treatment and disposal facilities

The other facilities as may be required within the Logistics Park will be eligible as a part of the Logistics Park Scheme. For the purpose of the eligible cost, the SLEC will fix the norms for the cost of construction of these Infrastructural facilities. The listed facilities are only indicative and the’ committee will finally decide based on the need of the area/location. The institution has to develop Logistics Park at least in an area of 20 Hectors. Get in touch with InidaFilings to start new Logistics Park.

Time Frame for the Project Completion

The project proposed would be completed within 3 years from the date of approval of the project by the State Level Empowered Committee (SLEC).

Eligibility Criteria for Logistics Parks

The assistance will be provided if the Logistics parks meet with the following conditions:

The Logistic Parks which are required to have the minimum infrastructure facilities namely, water distribution facilities, internal road facilities, sewage collection and treatment facilities, power distribution system, communication facilities and other facilities.
An indicative list of minimum infrastructure facilities are:
Strom water drainage system.
Asphalt Road/Cement Concrete Road.
Domestic sewerage collection and disposal system.
Open and Green spaces.
Water and Power supply
Distribution network and communication network.
Entrance gate and security
Parking facilities
Effluent treatment, collection and disposal.
Fire station or Fire fighting facilities along with equipment.
The developer of logistics Parks who is availing incentives under the scheme will not be eligible to get the incentive under any other schemes of the State Government unless specified otherwise.
Approval of the Logistic park should be accorded by the State Level Empowered Committee (SLEM).
The registration under the scheme will be approved by the State Level Empowered Committee.
The assistance under the scheme would be proportionally reimbursed in at 25% and at 50% that is based on the expenditure incurred at least by at 50% and at 75% respectively and the final payment will be credited after the completion of the Logistic park.
The Developer of Logistics Park has to follow the Third Party Quality Assurance (TPQS) system for the development of entire infrastructure in the Industrial Park.
Disbursement/requirement of the assistance sanctioned by the SLEC would be released on the availability of Government grant.
The terms and conditions as decided by SLEC from time to time will be applicable to the Private Institution for the infrastructure development of logistics Park.

Documents Required

The documents required for the Scheme for assistance in setting up of Logistic Parks are listed below:

In-principle approval of the proposed Park
Application form in the prescribed format.
Constitution of the Applicant Company or Institution.
Detailed Project Report
Detailed Annual Report of the promoter Company or Institution.
Copy of Acknowledgement slip under Industrial Park Scheme
Layout plan of the project proposed for Logistic Park.
Village Map of the proposed land with the details of Survey numbers are required
Copy of Registration certificate under the Industry association, industrial house or Institution registered under the Private sector undertaking/Cooperative undertaking/Societies Act/Partnership Act/Companies Act/Trust Act.