Gandhinagar: The Gujarat government has received expressions of interest (EOIs) from eight companies under the Global Capability Centre (GCC) policy, which was announced in February of the previous year. These companies have proposed investments totaling approximately Rs 18,000 crore to establish facilities aimed at advancing research and development (R&D).
Processing of EOIs Underway
Top government sources confirmed that the EOIs received under the GCC policy are currently being processed. Sanctions will be granted to the companies along with the various incentives outlined in the policy. The eight EOIs span multiple sectors, including semiconductors, capital markets and financial services, engineering R&D, chemicals and materials, healthcare and life sciences, technology, and industrial manufacturing.
Government's Vision for GCC Ecosystem
An official stated, "Our aim is to strengthen the state's position in the GCC ecosystem by attracting multinational corporations (MNCs) and other companies to foster innovations in R&D in the state, generate high-skill employment, and construct specialized IT zones and data centres." The official added that all EOIs will be processed promptly, and companies will receive incentives in accordance with the GCC policy provisions. "We expect the units approved under the GCC policy to begin onsite construction work before the end of the year," a source revealed.
GCC Policy Objectives and Incentives
Gujarat's GCC policy aims to attract at least 250 new GCC units by offering incentives, promoting investment, and simplifying regulations to encourage companies to establish R&D facilities, a significant step before manufacturing. When announcing the policy, the government stated its goal to generate over 50,000 employment opportunities in the state and attract investments of Rs 10,000 crore.
Financial Incentives Offered
The policy provides capital expenditure (capex) assistance ranging from Rs 50 crore to Rs 200 crore and operational expenditure (opex) support ranging from Rs 20 crore to Rs 40 crore. Additionally, it offers a 7% interest subsidy on term loans, capped at Rs 1 crore per year, along with 100% electricity duty exemption for five years.
Employment Generation Assistance
One of the key highlights of the policy is the employment generation assistance. This includes one-time support of 50% of one month's cost to the company (CTC) for newly recruited local employees retained for at least one year. The assistance is capped at Rs 50,000 for male employees and Rs 60,000 for female employees.
