Surat, May 12 (KNN) Gujarat Government, earlier this week, announced a comprehensive “Agro Business Policy 2016-21” under which by developing agricultural clusters, the whole value chain from the farm to foreign countries will be strengthened. The scheme has several benefits for the MSME agro units.

The key highlights of the scheme are –

        1. The Scheme of Capital Investment Subsidy

Assistance of Capital Investment Subsidy for Agro and Food Processing Units

Capital Investment Subsidy @25% of eligible project cost subject to maximum Rs 50.00 lakhs for setting up/expansion & diversification/modernization.

Assistance for Capital Investment Subsidy for Cold Chain, Food Irradiation Processing Plants & Pack Houses

Capital Investment Subsidy @25% of eligible project cost subject to maximum Rs 500.00 lakhs

Assistance of Capital Subsidy for Creating Primary Processing Centers/Collection centers in Rural Areas

Capital Investment Subsidy @25% of eligible project cost subject to maximum Rs. 250.00 lakhs

        2. Scheme for Back Ended Interest Subsidy on Term Loan

Assistance of Back Ended Interest Subsidy on the Term Loan for Agro and Food Processing Units

Back Ended Interest Subsidy @7.5% on the Term Loan with maximum amount of Rs. 150.0 lakhs for a period of 5 years for setting up/expansion & diversification/ modernization of Agro and Food Processing Units

Assistance of Back Ended Interest Subsidy on the Term Loan for Agro and Food Processing Infrastructural Projects

Back Ended Interest subsidy @7.5% on the Term Loan with maximum amount of Rs 400.0 lakhs for a period of 5 years for setting up Infrastructure Project in Agro & Food Processing Sector such as CA cold storages, Food irradiation Processing Plants, Silos, Pack houses, Food Parks, Reefer Vans etc

Additional Back Ended Interest Subsidy on Term Loan

a) 1% additional interest subsidy to SC/ST, physically challenged or women entrepreneurs

b) 1% additional interest subsidy to entrepreneurs below 35 years

        3. Scheme for Financial Assistance for Freight Subsidy

Benefits under this scheme will be available to MSME units only.

In view of the globalization trend, it is essential to encourage exports of agro and processed food products from the state. Considering this aspect in mind, assistance of 25% of actual air freight paid by any legal entity subject to maximum Rs 10.00 lakhs per year per unit will be granted for export of any fresh or processed horticulture milk, poultry or fish produce or 40% of actual air freight paid max Rs. 15.00 lakhs per year per unit for 5 years for organic produce from Cargo complex at Ahmedabad International Airport subject to following condition

1)   Such subsidy shall not be granted for more than 5 years per unit. The enterprise which has obtained subsidy in earlier scheme will not be eligible to avail benefits under this scheme.

2)   If samples are required to be sent in foreign country for exporting edible agro products and expenditure is incurred for getting sample passed for export of edible agro article, assistance of 25%  of actual legal expenditure (except expenditure incurred for purpose of traveling etc) incurred on it shall be granted limited to 2.0 lakhs per annum and maximum limit per beneficiary will be Rs. 5.0 lakh

        4. Scheme for Financial Assistance for Sea-Freight Subsidy

Assistance of 25% of actual sea freight paid by any legal entity subject to maximum Rs. 10.00 lakhs per year per unit will be granted for export of any fresh horticulture produce or 40% of actual sea freight paid subject to maximum Rs 15.00 lakhs per year per unit for Organic Fresh Horticulture produces from Cargo complex of Gujarat state. 

        5. Other Scheme

Quality Certification Mark:

MSME agro units are required to obtain quality certification mark for export purpose.

For this 50% (maximum of Rs. 5 lakh) assistance of expenditure incurred by institute/entrepreneur will be granted for obtaining certification mark from institute approved by  Quality Council of india such as ISO/HACCP/FSSAI/FPO mark/India Organic certification mark/ Agmark etc. Such assistance will be paid after having received certificate for Certification Mark.

50% of fee payable to recognized international certification Authority and 50% cost of testing equipment and machineries required for that certification totaling up to maximum amount of Rs. 10 lakhs.

Skill Enhancement

Assistance will be provided to Agro and Food Processing units/infrastructure projects at the rate of 50% of fee paid, subject to a maximum Rs.  10, 000 per employee on obtaining industry recognized skill certifications from recognized institutions (both Government and private institutions). The assistance under this incentive will be subject to an overall ceiling of Rs. 0.5 lac per year per unit maximum for a period of three years.

Reimbursement of VAT

The eligible Agro and Food Processing units and infrastructure projects will be provided reimbursement of net tax (net of input credits) paid by them under Section – 13 of Gujarat value Added Tax Act against their output tax liability. The reimbursement will be limited to a ceiling of 70% of the eligible fixed capital investment made by the unit.

The reimbursement of VAT will be limited to a ceiling of 70% of the eligible fixed capital investment made by the eligible unit.