Research and development is a key to Speech and the road and imperative to compete at a global level. The Gujarat Industrial Policy, 2020 aims to encourage companies to keep pace with rapid technological advances. The policy focuses on promotion of R&D in the state by companies as well as institutions and boost continuous innovation-led development. To promote more and ore R&D activities, government of Gujarat has came out with revised scheme of subsidy for R&D Activities in Gujarat.

Validity of Scheme of Subsidy for R&D Activities

Schemes of Subsidy for R&D Activities is valid from 7th August – 2020 to 6th August – 2025. That means scheme is valid for period of 5 years from date of start.

Types of Subsidy for R&D Activities

There are basically 4 types of subsidy schemes designed for conducting R&D Activities in Gujarat by various stakeholders such industrial undertakings, State or Central Govt, Industrial Associations etc..

We have explained in detail about each subsidy in this article.

Subsidy to establish Research & Development Centre or Product Development Centre

Eligibility Criteria

Subsidy is available to Industrial Corporations, Institutions, Professional Bodies which are registered with CSIR (Council of Scientific & Industrial Research) or DSIR (Department of Scientific and Industrial Research). Subsidy is also available to other legal entities such as company, partnership firm, LLP, Society, Trust, Industrial Co-Operative Society and also proprietary firm which is engaged or about to engaged in manufacture, processing, or job work of articles.

Eligible Activities

There are 2 types of eligible activities which qualify for Subsidy for R&D Activities in Gujarat.

  • One has to Set up R&D Centre with the sole objective of undertaking scientific, Industrial and / or technological research and development.
  • One has to set up Product Development Centre with the objective to improve the designs, process, working operations etc.

Value of Subsidy

Subsidy is available up to 30% of the investments in Plant and Machineries, Equipment’s including Hardware and Software and related other assets. It is to be noted that cost of land and building is not considered as eligible investment. Maximum subsidy available is Rs. 5 Crores during the period of this scheme.

Also read: Subsidy for SME IPO

Subsidy for Contract/ Sponsored Research Work

Eligibility Criteria

  • All research and development intuitions recognized by CSIR or DSIR.
  • Institutions set up by Govt. of Gujarat or Govt. of India.
  • AICTE approved institutions/ professional collages (Including autonomous as well as those collages affiliated to Universities)

Eligible Activities

Eligible institutions from Industrial Associations or Individual Industrial Undertaking or State Govt or other agency (Other agency should be approved by State Level Empowered Committee) involved in Contract research or sponsored research.

Value of Subsidy

Subsidy of 50% of project cost subject to maximum of Rs. 50 Lacs is provided for contract/ sponsored research work from any industrial enterprises/ industries associations to eligible institutions.

Assistance to R&D Institutions/ Laboratories set up by the State Govt or Govt of India

Eligibility Criteria

This subsidy is only available to R&D institutions recognized by CSIR/ DSIR and set up by State Govt or Govt of India.

Eligible Activities

Subsidy is available for setting up new laboratory as well as strengthening of existing laboratories or strengthening, modernization and addition/ upgradation of existing laboratory.

Value of Subsidy

Quantum of subsidy is decided based on the requirement. Proposal will be scrutinized by the SLEC.

Subsidy to Industrial Association for establishment of R&D Laboratories

Eligibility Criteria

This subsidy is available for setting up new R&D laboratory recognized by CSIR/ DSIR set up by Industrial associations. Such Industrial association shall be registered under applicable act. Provisional approval from CSIR or DSIR is required. Application is to be submitted to District Industries Commissioner along with project DPR.

Eligible Activities

Subsidy is available for setting up of R&D Laboratory with all necessary infrastructure and and facilities.

Value of Subsidy

Subsidy is available up to 60% of the project cost including plant and machineries, hardware and software required for R&D activities. Maximum subsidy available is Rs. 5 Crores.

How to apply for the subsidy?

  • Subsidy for R&D activities in Gujarat is to be applied to District Industries Commissionerate in prescribed format.
  • Proposal will be reviewed by office of District Industries Commissionerate, then same will be forwarded to SLEC.
  • SLEC shall further review the proposal, then SLEC shall approve the claim and then subsidy shall be disbursed to eligible applicants. Read more here.

How we can help?

We are actively engaged in providing comprehensive financial services which includes setting up of the project, idea validation, govt liasoning, loan syndication etc. We have thorough experience of applying and claiming various government subsidies for MSME, Agriculture Units, Large Units, Industrial Undertakings, Textile Units etc. If you are planning to start new manufacturing business anywhere in Gujarat, then fill free to consult us before starting the activities. We will carefully review the project and we will design best suitable financial plan that reduce your capital cost and claim available govt. benefits.

By Smit Shah

I am a passionate Chartered Accountant having deep interest in taxation with combination of blogging.

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