Scheme for Assistance to Logistic Park

Assistance Scheme for Logistic Parks in Gujarat

The “Scheme for Financial Assistance to Logistic Parks” is an initiative launched by the Government of Gujarat to bolster the development of logistic parks, thereby enhancing the state’s infrastructure and optimizing supply chain processes. This scheme, effective from August 7, 2020, until August 6, 2025, is designed to provide financial support to qualifying entities involved in the establishment of logistic parks, ensuring the seamless movement of goods and promoting economic advancement.

Objectives of the Scheme

The primary aim of this scheme is to facilitate the growth of logistic parks that serve as vital components in the transportation and distribution sectors. By improving infrastructure, the scheme strives to create an efficient supply chain network that can significantly contribute to economic development in Gujarat.

Key Benefits

• Financial Assistance: Eligible entities can receive 25% of the approved Fixed Capital Investment (excluding land and vehicles), with a cap of ₹15 crores.
• Stamp Duty Reimbursement: 100% reimbursement on stamp duty for land purchases associated with approved projects.
• Combined Central and State Support: Financial assistance may reach up to 60% of the total project cost through combined efforts from both State and Central Governments.
• Milestone-Based Disbursement: Funding is released in four phases (25%, 50%, 75%, and 100%), with the final 15% released upon project completion.

Eligibility Requirements

To qualify for this scheme, institutions must adhere to the following criteria:

• Registered under the Societies Act, Partnership Act, Trust Act, Companies Act, or established as a Special Purpose Vehicle (SPV) for the purpose of developing a Logistic Park.
• Intent to develop a logistic park in accordance with guidelines set forth by the State Level Empowered Committee (SLEC).
• Possession of 100% ownership of the land designated for the project.
• Projects that are already in progress before registration will not be eligible.
• Financial assistance is restricted to infrastructure-related Fixed Capital Investment (excluding land costs and vehicles).
• Completion of projects is expected within three years from the date of approval, with a potential one-year extension under exceptional circumstances.

Exclusions from the Scheme

Certain projects and expenditures are not eligible for assistance:

• Projects that are already underway prior to registration.
• Institutions that fail to meet the project completion timeline, including extensions, will become ineligible and may have to repay disbursed funds.
• Entities receiving assistance from other state schemes, unless otherwise specified.
• Failure to maintain the logistic park for a minimum of 10 years after completion will disqualify the institution and lead to recovery of any disbursed incentives.

The following costs are not eligible for financial assistance:

• Land acquisition and development expenses.
• Goodwill fees, commissioning fees, or royalties.
• Preliminary and pre-operative costs.
• Interest accrued during the project duration.
• Expenditures on transportation equipment or vehicles.
• Consultancy or technical fees.
• Working capital needs.
• Any costs not explicitly listed as eligible investments.
• Other expenditures deemed ineligible by the SLEC.

Application Process

To apply for the scheme, follow these steps:

• Step 1: Submit an application for project registration to the Industries Commissionerate, accompanied by an affidavit and other required documents.
• Step 2: After securing full possession of the land, prepare and submit a Detailed Project Report (DPR) along with an approved layout plan to the Industries Commissionerate for financial assistance approval.
• Step 3: The Industries Commissionerate will review the application and present it to the SLEC for approval.
• Step 4: Once approved, submit claims for assistance in the prescribed format, including an affidavit and other necessary documents.

Understanding Logistic Parks

A Logistic Park is defined as a designated area of at least 20 hectares that provides essential infrastructure for logistic services. These facilities include, but are not limited to:

• Cargo aggregation and segregation
• Distribution and inter-modal transfer of materials
• Storage facilities, both open and covered
• Custom bonded warehouses and container freight stations
• Material handling equipment and commercial facilities

Eligible Fixed Capital Investment Explained

Eligible Fixed Capital Investment refers to the capital expenditure incurred by the institution to establish logistics and related infrastructure. This includes:

• Compound walls
• Internal roads
• Administrative buildings
• Canteens
• Power distribution lines
• Water distribution systems and treatment facilities
• Sewage lines and drainage systems
• Common parking areas and any other necessary facilities

The eligible costs associated with these construction activities will be determined according to the relevant Schedule of Rates (SOR) norms of the appropriate government department.

Official Source

For more detailed information, visit myScheme.gov.in.