GUJARAT

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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

    • To come into effect from the date of issue of this Order

    • To be Applicable only to SSI units/ancillary units in the manufacturing sector whose total investment in P & M exceeds Rs. 5 lakhs.

    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
    • The quantum of the capital investment subsidy for SSI units is 20% of the eligible fixed capital investment or Rs. 15 lakhs whichever is less (in Category I) and 15% of the eligible fixed capital investment or Rs. 10 lakhs whichever is less (in Category II)

  • 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:

    • 25% of the eligible fixed capital investment or Rs. 15 lakhs whichever is less (in Category I) and 20% of the eligible fixed capital investment or Rs. 10 lakhs whichever is less (in Category II)

  • 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)



    ORDERS

    • IM & ED Resolution No:SIU-1091/3224 CH Dt. 20-6-1991
    • IM & ED Resolution No:SIU-1091/3224 CH Dt. 20-6-1991
    • Govt. Resolution No: SIU-1098-668 CH Dt. 13-8-1998
    • Govt. Resolution No: SIU-1098-668-CH Dt. 17-4-2000
    • The Incentive Policy 1995-2000