Name of the Scheme: Scheme for financial assistance to Plastic industry by way of Interest Subsidy and VAT incentive.
Operative Period : From 01/01/2015 to 31/12/2019
Who will eligible?
The New Enterprises which are registered as an industrial unit as MSME with respective DIC are and obtained IEM form GOI are eligible to get benefit under the scheme for following purpose:
1. The New Enterprises, which is engaged in manufacturing of plastic products / items / articles by using plastic as a raw materials purchased within the state only, is eligible.
2. The enterprise that has availed assistance under this scheme will not be entitled to avail benefit under any other scheme of State Government, unless and otherwise specified under that scheme.
Assistance Available:-
1. Interest subsidy for New Enterprises:-
Interest subsidy up to 7% of term loan Maximum limit of Rs. 100 lakhs per annum for 5 years for fixed capital investment in building, new plant & machinery, equipment (including cost of installation, erection, transportation, electrification) and other related assets required for the manufacturing of the product. However, cost of land and land development will not be eligible.
2. VAT Related Incentive to New Enterprises:-
The eligible new enterprise will be reimbursed @ of 80% of the net VAT paid for 5 years from date of commercial production. The VAT reimbursement amount would be 70% of eligible fixed capital investment. (excluding additional Tax and reduction of ITC as per the provision of the GVAT Act 2003)
The eligible unit shall be entitled for reimbursement up to 1/5th of eligible limit in a particular year.
3. Interest subsidy for New Enterprises:-
Plastic material means organic polymers of high molecular mass from petrochemicals such as Polyolefin (LLDPE, LDPE, HDPE, PP), PVC, Nylon, Polyesters, Polystyrene, Polycarbonate, Polyamide (Nylon 6, Nylon 66) etc.
Conditions for the Interest subsidy :-
1. The new enterprise has to apply for interest subsidy from the date of first disbursement of the term loan from financial institution.
2. The interest subsidy will be given to the new enterprise which pays regular installments and interest to the financial institutions. If the enterprise becomes defaulter, it will not get interest subsidy for the default period and such defaulting period will be deducted from 5 years period.
3. New enterprise which has obtained first disbursement and started commercial production during the operative period of the scheme will eligible for interest subsidy and VAT incentive from the date of production.
Conditions for the VAT Incentive :-
1. The eligible unit shall pay the net VAT payable under the provisions of the Gujarat VAT Act,2003 in the Government treasury.
2. The amount paid on account of additional tax and reduction of ITC as per the prevision of the GVAT Act, 2003 shall not be reimbursement.
3. The reimbursement will be available for a period of 5 years from the dated of production, the eligible unit shall be entitled for reimbursement up to 1/5th of eligible limit in a particular year
4. Reimbursement of the incentive is not eligible again claimed by subsequent dealers by way of tax credit for interstate sales, branch transfer, consignment and exports.
5. The eligible unit shall manufacture the goods in its own unit for which it is eligible for incentives.
6. The eligible unit shall not transfer its business during the incentive period, nor assign its rights and responsibilities to any other agency.
7. The eligible unit shall have remained in production during the incentive period.
8. The scheme shall be reviewed the GST regime, but the total of assistance shall not exceed that available under this scheme.
Conditions for the VAT Incentive
1. The enterprise will apply to Industries Commissionerate in prescribed format along with detailed project report.
2. The application will be scrutinized and will be put up before the State Level Empowered Committee (SLEC).
3. On approval of the committee, the registration certificate will be issued.
4. On commencement of the commercial production the enterprise will apply to Industries Commissioner for assistance under the scheme.
5. The Industries Commissioner will approve the interest subsidy and VAT incentive under this scheme.
