Gujarat announces sops to attract new manufacturing units

Plug-and-production facilities and labour law exemptions for 1200 days are among the decisions announced by the chief minister of the Indian state which contributes 7.9% to India’s gross domestic product and 20% to the overall exports.

May 13, 2020 Uma Gupta

In Gujarat a Li-ion battery manufacturing cluster is coming up at Dholera Special Investment Region.

Image: Goran Tek-en, Wikimedia Commons

Gujarat’s chief minister Vijay Rupani has prepared a blueprint for attracting new manufacturing units to the state post Covid-19.

At present, a large number of companies from Japan, USA, Korea and European nations are willing to shift their production from China to other countries.

The chief minister announced a number of important decisions to ensure that India, especially Gujarat, is at the focus of such opportunities.

A total of 33 thousand hectares of land is available for industrial use in Khoraj, Sanand, Dahej Special Economic Zone (SEZ), Dholera SEZ and other private SEZs. The details of the same and plug-and-produce facility will be made available through a land bank based on geographic information system.

Further, the process of approvals for new industries that wish to establish themselves in Gujarat will be 100% online. They will be allocated land within seven days and all the necessary permissions related to the same shall be provided in 15 days of their application.

The Department of Industries and Mines, in cooperation with the Department of Industrial Promotion, Ministry of Foreign Affairs, government of India, has envisioned to contact the embassies and industries of foreign nations in order to establish their units in Gujarat.

The new industrial units will also be provided with relief from all the labour acts and norms for 1200 days. However, they will be bound to follow Minimum Wages, Act, Industrial Safety Rules and The Employee Compensation Act. The chief minister has directed the Labour Department to bring out an ordinance for the same.

The state government shall also facilitate in helping the foreign companies to find joint venture partners in the state.

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