The Gujarat government has prepared a new industrial policy that introduces a category of industry defined as 'ultra mega', set to be unveiled within the next fortnight. According to the policy draft, an ultra mega industrial unit is an industrial undertaking in thrust sectors with a minimum investment of Rs 10,000 crore and employment for at least 3,000 people.
Expansion of Thrust Sectors
The government has expanded the number of thrust sectors from the existing nine to 16 in the proposed policy. New entrants include ancillary units to semiconductor industries, nuclear power equipment units, vehicle scrapping facilities, electronic waste recycling industries, textile waste recycling units, shipping container manufacturing, and heavy earth moving equipment manufacturing units. Existing thrust sectors are green energy ecosystem, mobility, capital equipment (electrical machinery, industrial machinery, and telecom machinery), critical mineral processing, textiles and apparel, sustainability, agro and food processing, chemicals, and healthcare. Robot manufacturing and drone manufacturing have also been selected as thrust sectors.
Employment and Investment Requirements
The draft states that for every additional Rs 5,000 crore of investment, additional employment of 500 persons will be mandatory. Previously, industries proposing investment over Rs 10,000 crore were categorised as 'mega industries' and offered customised benefits under the Atmanirbhar Gujarat scheme. The government has now decided to create a separate category of 'ultra mega' industries in the policy itself, defining proposed investment, employment guarantees, and incentives.
A top government source said, 'The government has now decided to coin the separate category of ultra mega industries in the policy itself, defining the proposed investment, employment guarantees, and incentives.'
Incentives for Ultra Mega Industries
Industries granted approval under the 'ultra mega' category will receive up to 40% incentives on capital investment. They will have the flexible option of choosing incentives in the form of capital subsidy, interest subsidy, and power tariff. A source familiar with developments confirmed, 'Industries that will be granted approval under the ultra mega category will get up to 40% incentives on capital investment that they make. Such industries will have the flexible option of choosing incentives in the form of capital subsidy, interest subsidy, and power tariff.'
The new policy aims to boost large-scale investments and employment in Gujarat, further strengthening the state's industrial ecosystem.
