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Scheme for Financial Assistance to Logistic Parks

Financial Assistance to Logistic Parks

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.


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.

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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.

Final approval

Detailed Expenditure Records/statements with the C.A. Certificate.

  • Approved Civil Certificate.
  • GPCB/MoEF Clearance certificate, if required.
  • Third-Party Quality Assurance (TPQA) Certificate
  • Project Completion Certificate/document
  • DIC Team statement/record as per appointed by the Industries Commissionerate (IC)


The assistance will be provided with the following conditions:

  • The Institution shall have to develop Logistics Park at least an area of 20 Hectares.
  • The layout plan will have to be approved by the concerned authority.
  • The institution will have to provide sufficient parking place as per guidelines approved by the SLEC
  • Approval of the SLEC for setting up of Logistic Park will have to be received before the commencement period of the work at the site. The project under the execution will not be eligible for any assistance under this scheme.
  • The interpretation/decision of SLEC regarding provisions under this resolution will be final.
  • The institution would be responsible to maintain the Logistics Park at least for 10 years after it the completion. If it neglects to do so, the incentive amount sanctioned/ disbursed will be recovered from the Institution as land revenue arrears under the Land Revenue Laws.
  • If the institution fails to complete the Logistics Park within the prescribed period. It will attract the recovery of incentive that is already disbursed including the reimbursement of stamp duty.
  • The Institution/company setting up the Logistics Park and availing incentive under any scheme of the state government will not be eligible to avail assistance under this scheme unless specified otherwise. However, the enterprise would be eligible to avail incentives under Government of India schemes.

Application Procedure

The application procedure to obtain financial assistance under the Scheme for assistance in developing Logistic Parks.

Step 1: The applicant will have to access the official Investor facilitation portal to submit the online application form for this scheme

Step 2: After filling online application along with the printout of the application form and documents as mentioned has to be submitted to Industries Commissioner (IC) office within 7 working days or else the application will be found cancelled.

Note: The scheme form can also be downloaded from the official web portal of Investor facilitation portal and the same has been reproduced below for the ready reference in PDF format.


Step 3: After getting the online application form and documents, then the branch will enquire the application form and inform the applicant if any other documents or details are missing within 15 days of the receipt of application.

Step 4: If the application is selected, the applicant will be asked to make a presentation before a committee.

Step 5: The Committee can ask for further clarification and amendments in the plan or project. On compliance of committee’s remarks, the committee will recommend it to State Level Empowered Committee (SLEC) for approval of the project.

Step 6: The SLEC will verify the project and if satisfied, will approve the project, subject to the specific terms and conditions of the policy.

Step 7: The detailed procedure for the sanction of assistance and disbursement will be laid down by the IC office.

Step 8: 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.