The Gujarat government announced a new industrial policy on Monday, aimed at positioning the state as a global research and development (R&D) hub. The policy offers a range of incentives, including capital expenditure (CAPEX) and operating expenditure (OPEX) support, as well as financial assistance for intellectual property rights (IPR) and patents.
Early Bird Incentive for Large R&D Centers
An early bird incentive system has been introduced, where the first five R&D centers with a minimum investment of Rs 300 crore will receive a 50% capital subsidy of up to Rs 50 crore on building, machinery, and equipment over five years. Additionally, 25% of the land allotment price in GIDC, Dholera SIR, or government land, or 25% of the jantri rate for private land, will be reimbursed to these centers.
Support for Other R&D Centers
Other R&D centers with a minimum investment of Rs 100 crore will receive a capital subsidy of up to Rs 20 crore on building, machinery, and equipment over five years. Deputy Chief Minister and State Industries Minister Harsh Sanghavi stated, “Incentivising research and development will create an ecosystem for new-age industries to grow in the state. The state will reap huge benefits of incentivising R&D activities.”
OPEX Support and IPR Reimbursement
The policy document outlines OPEX support for R&D centers, including power tariff at Re 1 per unit for five years and a payroll subsidy of Rs 10,000 per person per month for three years. R&D centers will also get 100% reimbursement of up to Rs 10,000 per IPR filed for 10 years and 75% of cost up to Rs 15 lakh per patent for a total of 25 patents over 10 years.
Additional Benefits for In-House R&D and NABL Labs
In-house R&D centers of companies recognized by DSIR will receive 50% capital subsidy up to Rs 50 crore. Companies setting up NABL-certified labs will get assistance of up to Rs 20 crore.
