‘What do I actually get?’ is the question every promoter asks once the cluster is chosen. Gujarat's incentive stack is generous but layered, and the layers interact — your overall benefit is capped by a single ceiling even though several schemes feed into it. This guide lays out each lever in the Viksit Gujarat Industrial Policy 2026, what it pays, and for how long. Percentages are calculated on eligible fixed capital investment (eFCI) unless stated, and all figures are as announced — confirm against the official Government Resolution before underwriting a project.
Capital subsidy — the headline lever
Capital subsidy is a percentage of eFCI paid back over the incentive period. It is the largest single lever for most projects. For MSMEs it runs to 35% of eFCI in Band A talukas and 25% in Band B. For Large units it is 25% (thrust sector) or 15% (general). Mega units get 25% and Ultra-Mega units 30%, with overall ceilings of 35% and 40% respectively. Priority sectors — toys, footwear, robots, drones, sports goods — reach a 50% ceiling in Band A.
‘Choose Your Incentive’ — capital, interest, power
MSMEs and large units can blend three levers within their ceiling rather than taking a fixed package:
| Lever | Band A | Band B | Duration / cap |
|---|---|---|---|
| Capital subsidy | 35% of eFCI | 25% of eFCI | 1–5 yrs |
| Interest subsidy | 7% p.a. | 7% p.a. | 5 yrs, ≤10% of eFCI |
| Power-tariff support | ₹2 / unit | ₹1 / unit | 5 yrs, ≤25% of eFCI |
| Overall ceiling | 45% of eFCI | 35% of eFCI | — |
The art is in the weighting. A capex-heavy plant leans on capital subsidy. A debt-funded project leans on the 7% interest subsidy. A power-intensive process — ceramics, electrochemicals, foundries — leans on the per-unit tariff support, which can be the most valuable lever over five years. You cannot exceed the band ceiling, but you choose how to fill it.
SGST reimbursement
Gujarat has historically reimbursed net SGST on commercial production for up to 10 years, graded by area category, as a way to lower operating cost in the early years. The 2026 policy continues an SGST/turnover-linked benefit for larger units; the precise reimbursement percentages and caps are set in the policy's operational guidelines. Because this is a turnover-linked benefit rather than a capex one, it favours high-throughput units and should be modelled on projected sales, not just eFCI. Confirm the current schedule against the Government Resolution.
EPF reimbursement
The state reimburses 100% of the employer's EPF contribution, subject to per-employee monthly caps — ₹1,800 for male employees, ₹2,500 for female employees, and ₹3,000 for specially-abled employees. The period scales with unit size: around 5 years for MSMEs, 8–10 years for Large and Mega units, and up to 10 years for Ultra-Mega. For labour-intensive units this is a meaningful, recurring benefit that is easy to under-count at the planning stage.
Electricity-duty exemption
Eligible units get 100% exemption from electricity duty under the Gujarat Electricity Duty Act, 1958, for the incentive period. Combined with the power-tariff lever, this materially lowers the energy bill for power-intensive processes — one reason Gujarat remains competitive for ceramics, chemicals and metals.
Stamp duty & registration
Ultra-Mega units receive 100% reimbursement of stamp duty and registration fees on land. Other categories may receive stamp-duty relief on purchase or lease of land per the operational guidelines. Separately — and this is a land-side change, not a policy-side one — the November 2024 reduction of the non-agricultural conversion premium from 30% to 10% of jantri lowered the cost of bringing a private agricultural parcel to industrial use across the board.
Special provisions — startups, women, R&D, green
- Startups: ₹25,000/month sustenance for one year (₹30,000 with a woman co-founder); seed funding up to ₹40 lakh; an additional 1% interest subsidy on term loans.
- Women entrepreneurs: an additional 1% interest subsidy and rental assistance up to ₹3 lakh per year for five years.
- SC/ST entrepreneurs: an additional 5% on the overall incentive ceiling.
- R&D centres: capital subsidy up to 50%, plus ₹10,000 per employee per month for three years.
- Green manufacturing: up to 50% of project cost for MSME wastewater recycling, Zero Liquid Discharge and cleaner-production technology (wastewater support up to ₹75 crore); up to 80% support for priority industrial-park developers.