POLICIES |
ORDER/NOTIFICATION |
SUBJECT |
IM & ED Resolution No: SIU-1091/3224 CH Dt. 20-6-1991 |
Scheme for Rehabilitation of SSI and Non-BIFR sick industries
To facilitate the revival of viable sick industrial units as also the winding-up of non-viable sick nits, Government of India have set up a statutory board, viz. Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies (Special Provisions) Act, 1985. SSIs however do not come under the purview of BIFR Govt. of Gujarat had therefore introduced a Scheme for rehabilitation of SSI and non-BIFR sick industries
|
Govt. Resolution No: SIU-1098-668 CH Dt. 13-8-1998 |
The State Govt. has decided to approve the following Scheme in supercession of IM & ED Resolution No. SIU-1091/3224-CH dated 20-6-1991
Scheme for Rehabilitation of Small-Scale and Non-BIFR Sick Viable Industries
Reliefs and Concessions
In principle, the parameters applicable to medium & large scale units for the purpose of BIFR would also apply to SSI or ancillary sick units
Non-Fiscal Reliefs and Concessions:
Relaxation from power cuts Grant of permission to mortgage surplus land exempted under Sec.20 of Urban Land Ceiling Act in favour of banks/financial institutions State Govt. shall not insist upon bank guarantees against arrears due to it Amicable settlement of disputes management and representatives of labour through proactive action of Labour Department
Fiscal Reliefs and Concessions
Reliefs in Payment of Sales Tax: Deferment of Arrears; and Sales Tax Deferment Reliefs from the Energy Department: Electricity duty deferred for a period of two years from the date of sanction of the rehabilitation package Continuation of Incentives sanctioned earlier Additional Concessions: Deferment of arrears of water charges; Reduction of interest on delayed payment by Gujarat Electricity Board to 12% and waiver of extra service charges for reconnection of water supply.
|
|
Govt. Resolution No: SIU-1098-668-CH
Dt. 17-4-2000
|
New Industrial Policy Scheme for Rehabilitation of Small Scale and Non-BIFR Sick Viable Industries.
Amendments in present provisions in the Scheme for Rehabilitation of Small Scale and non-BIFE sick viable industries (Govt. Resolution No. SIU-1098-668-CH dated 14-8-1998) due to eligibility conditions.
The Scheme shall be reviewed after a period of one year (i.e. defining sickness in terms of 30% erosion in net worth)
Definition of Sick Unit to be substituted as:
Erosion in net worth due to accumulated cash losses to the extent of 50% or more of its peak net worth in the preceding two years OR 30% or more of its peak net worth in the preceding two accounting years in case of reference made by its financing bank or financial institution
|
|
The Incentive Policy 1995-2000
|
Comprehensive Industrial Policy
Gujarat-2000 A.D. and Beyond
The Scheme will be in operation from 16-8-1995 for a period of 5 years, up to 15-9-2000
Salient Features:
As many as 128 out of 184 talukas of the State eligible for benefits under various packages of incentives Eligible areas grouped into two main categories, giving a wider choice of location Thrust industries, premier and prestigious units, eligible for incentives all over the State, except in a few banned areas Tiny units set up and managed by SC/ST/Other Backward Classes/women entrepreneurs/educated unemployed youth offered cash subsidy at a higher rate Premier units eligible for sales tax incentives upto as much as 175% of fixed capital investment for a maximum period of 17 years. List of ineligible industries reduced to a minimum
Capital Investment Subsidy Scheme
Incentives to Thrust Industries
The following are identified as Thrust Industries: Garments (including hosiery) Gems and jewellery Agro-processing (except edible oil seeds) Food processing Leather products Ancillary engineering industries 100% Export oriented Units
Cash subsidy for SSIs in thrust industries:
Electronic Industries
SSI units in this sector are entitled for subsidy as per the rate ceiling prescribed below: 25% of the eligible fixed capital investment or Rs. 15 lakhs whichever is less (in Category I) 20% of the eligible fixed capital investment or Rs. 10 lakhs whichever is less (in Category II)
|
