1. Financial Assistance to Agro Industrial Units &
Infrastructure projects in Gujarat (2016-21)
Scheme for Capital Investment Subsidy
► 25% subsidy upto Rs. 50 lakh for setting up/expansion & diversification/ modernization
► 25% subsidy upto Rs. 500 lakh for cold chain, food irradiation processing plants and pack houses
► 25% subsidy upto Rs. 250 lakh for primary processing centres / collection centre in rural areas
► 25% subsidy upto Rs. 50 lakh for reefer vehicles
Air – Freight Subsidy for MSME Unit
► 25% subsidy of actual air freight upto Rs. 10 lakh per year for export of any fresh or processed
horticulture, milk, poultry or fish produce
► 40% of actual air freight upto Rs. 15 lakh per year for organic produce exported from Cargo complex
at Ahmedabad International Airport
► 25% assistance for getting sample passed for export of edible agro article upto Rs. 2 lakh per annum
and Rs. 5 lakh in total per beneficiary during the operative period of the scheme
Sea Freight Subsidy to MSME Unit
► 25% subsidy of actual sea freight upto Rs. 10 lakh per year for export of any fresh horticulture
produce
► 40% of actual air freight upto Rs. 15 lakh per year for organic fresh horticulture produce exported
from Cargo complex of Gujarat state
Back Ended Interest Subsidy on Term Loan
► 7.5% back ended interest subsidy upto Rs. 150 lakh for setting up/expansion & diversification/
modernization of Agro and Food Processing Units for 5 years
► 7.5% back ended interest subsidy upto Rs. 150 lakh for infrastructure such as cold storages, food
irradiation processing plants, silos, food, food parks, reefer vans, pack houses etc.
► Additional 1 % interest subsidy for SC/ST, Physically challenged or Women entrepreneurs
► Additional 1 % interest subsidy for young entrepreneurs below 35 years age

2. Assistance to Quality Certification
► 50% assistance upto Rs. 5 lakh incurred by institutions/entrepreneur for quality certification from
institute approved by Quality Council of India such as ISO/HACCP/FSSAI/FPO mark/India
Organic certification mark/ AGMARK etc.
► 50% assistance for international quality certification and 50% assistance for testing equipment &
machineries required for that certification totalling upto maximum amount of Rs. 10 lakh
Assistance for Skill Enhancement
► 50% assistance upto Rs. 10,000 per employee on obtaining industry recognized skill certifications
from recognized institutions with a ceiling of Rs. 50,000 per year per unit upto 3 years
► 35% assistance for machinery/equipment and technical civil works for modernization of meet shop
maximum upto Rs. 5 lakh
Reimbursement of VAT
► The eligible Agro and Food Processing units and infrastructure projects will be provided
reimbursement of net tax paid by the unit will a ceiling of 70% of the eligible fixed capital
investment made by the unit
Incentive on Power Tariff, Electricity and Stamp Duty
► 1 Re. per unit power subsidy to agro & food processing and infrastructure projects for 5 years
► 100% reimbursement in electricity duty within limit to 5 years of the establishment
► 50% reimbursement of stamp duty/registration fee/conversion fee paid on sale/lease/transfer of
land and 100% reimbursement of stamp duty/registration fee/conversion fee paid for setting up of
infrastructure projects in agro and food processing sector
For more details refer to “Comprehensive Agro Business Policy 2016-21”
Ahmed Mustafa Barbhuiya
https://in.linkedin.com/in/ahmed-barbhuiya-1b650518