India's Investment Climate

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India's Investment Climate

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Highlights of Union Budget 1997-98

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Indian States-A Profile

GUJARAT

General Information

Capital Gandhinagar
Area 1,96000 sq km
Population(Census 1991) 41.1 million
Principal Languages Gujarati
Urbanisation Ratio(1991) 34.4%
Literacy Rate(1991) 60.9%
Major Minerals Textiles, soda ash, azodyes, sal nitrogenous fertilizers, viscose filament yarn, Cotton, cloth, sulpuric acid, paper & paper board, casusic soda, cement.
Major Industries -
Major Crops Tobacco, cotton, groundnut, cumin, sugarcane, mangoes, bananas, paddy, wheat, bajra.

Infrastructure

Railway track length 5,890 km
Road length 68,900 Km
National Highway length 1,572 Km
Domestic airport 10, Ahmedabad, Bhavnagar, Bhuj, Jamnagar, Kandla, Keshod, Porbandar, Rajko, Surat, Vadodara
International airport 1, Ahmedabad
Mjor cities linked Bangalore, Calcutta, Delhi, Chennai, Mumbai, Vadodara
Ports 41
Industrial Zones & Parks 263
Export Processing zone 1


Industrial Policy

The policy offers an attractive package of incentives to accelerate the indusrial growth in the state. The objecives of he oplicy are : Accelerate development of the backward areas, creation of large scal empolyment opportunities, increses of total flow of investment to industrial sector, accelerating the developmen of infrastructure and human resources to susain the long term growth, achieving subsainable development.

Incentives

Capital investment subsidy of 35% of he fixed eligible capital (FEC) investment in category-I, 25% in category-II, 30% of FEC in SSI (Max. Rs. 3 million) for category-I, 20% in categoy-II, 30% (Max. 25% million) medium & Large Indusries, 20% (1.5 million) in cateory-II.
100% of FCI for a period of 9 years for Tiny & SSI in Category-I
100% of FCI for a period of 6 years for Tiny & SSI in Category-II
80% of FCI for period of 9 years for M&LSI in Category-I
60% of FCI for period of 6 years for M&LSI in Categoy-II
Pioneer units subsidy have 30% (upto Rs. 2.5 million) 20% (upto Rs. 1.5 million) of FCI for Category-I & II respectively.
Additional sales tax benfefit of 100% of FCI upto 10 Years for Categoy-I and 75% for 8 year for category-II
100% of EOU units, 100% of FCI for a period of 10 years sales tax benefit, 75% for FCI for 8 year.
Special incentives for Electronics Industry i.e. capital investment subsidy between 25% & 35% upto Rs. 3.5 million.
Subsidy of 40% of fixed capital upto Rs. 2 lack for entrepreneurs belonging to disadvantaged groups.
Unavailed portion of sales tax incenives for new promoters reviving sick units.
Subsidy on 50% capital investment on social infrastructure projects.
New scheme for promoting small and ancillary units on the basis of local resources and skills.
Special incentives for purchase of enviornment-friendly plant and machinery.

State identified priority sectors

Ancillary Development, Electronics, Garments, Gems & Gewellery, Handlooms, Leather.

Contact

Name of the organisation Telephone
Fax
Gujarat Industrial Development Corporation
Fadia Chambers.
Ahmedabad
079-401671-74 442563
Gujarat State Financial Corporation,
Childre's Hospital Building,
Ahmedabad
079-444592  



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