Obtaining approvals
An indicative list of approvals with timeframe for setting up business in
Gujarat
| List of approvals and clearances required |
Departments to be consulted |
Estimated time taken
(in days) |
| Incorporation of company |
Registrar of Companies |
SINGLE WINDOW CLEARANCE The state's single window
facility (iNDEXTb) on an average clears investment approvals in 30 days.
However, the time for obtaining approvals depends on the nature of the
industry and the documentation provided by the investor. In cases where the
investor meets all government requirements, clearances are expedited
considerably. |
| Registration, IEM, Industrial licenses |
District Industry Centre for small, medium and large
industries |
| Allotment of land |
State Department of Industries / State Industrial
Development Corporation / Infrastructure Corporation |
| Permission for land use |
State Department of Industries, Department of Town and
Country Planning |
| Site environmental approval |
State Pollution Control Board and Ministry of Environment
and Forests |
| No Objection Certificate and consent under Water and
Pollution Control Acts |
State Pollution Control Board |
| Approval of construction activity and building plan |
Town and Country Planning Authority |
| Sanction of power |
State Electricity Board |
| Registration under states Sales Tax Act and Central and
State Excise Act |
Sales Tax Department, Central and state excise departments |
Cost of setting up business
An indicative table on cost of setting up business in Gujarat
| Manufacturing |
| Land (US$ / hectare)* |
95,312 |
| Labour cost (US$ / man year)** |
15,92.4 |
| Services |
| Occupation Costs |
NA |
| (US$ / sq ft / year) |
|
| Employee Cost (US$ / man
year)*** |
| Software developers |
6,383 |
| Team leads |
14,893 |
| Architects |
21,276 |
| Project managers |
31,915 |
| Common Heads |
| Cost of capital**** |
10.57 |
| (Prime lending rate, per cent) |
|
| Electricity (US cents
/ kWh)*** |
| Commercial |
9.49 |
| Industrial |
9.29 |
Sales tax exemptions
The Gujarat Government gives tax concessions for
investment in backward areas. For instance, the Government has announced
exemptions for investment in the Kutch district. Further, the state has offered
an excise exemption to all new units for a period of five years from July 31,
2001 to December 31, 2005.
Units with investment exceeding US$ 4.4 million will have no ceiling on the
quantum of excise exemption. These can avail a 100 per cent exemption/deferment
for investment in eligible fixed assets for different time periods depending on
the investment range.
| Investment range |
Period of Exemption / Deferment |
| Up to US$ 2.2 million |
5 Year |
| US$2.2- 11.1 million |
7 Year |
| Above US$ I I. I million |
10 Year |
Source: Government of Gujarat Website
Contact for information
State Government Website
www.gujaratindia.com
Gujarat Industrial Development Corporation (GIDC)
Gujarat Industrial
Development Corporation aims to accelerate the pace of industrialisation in the
state. GIDC identifies locations suitable for industrial development and
arranges for infrastructure facilities. GIDC has set up industry specific
estates like the electronics estate at Gandhinagar, ceramics estates near
Bhavnagar, chemical estates at Vapi,
Ankleshwar, Panoli, Jhagadia, Nandesari, Vatwa,
Naroda, Odhav, etc and a host of engineering estates spread all over
Gujarat.
Gujarat Industrial Development Corporation
Block No. 4, 2nd Floor
Udyog Bhawan, Sector I I
Gandhinagar 382 017
Tel: +91 79 23225811
Fax: +91 79
23221191
Email: info@gidc.gov.in
Web: www.gidc.gov.in
Confederation of Indian Industry (CM)
Information on the market and
opportunities for investment in the state of Gujarat can also be obtained from
the Confederation of Indian Industry which works with the objective of creating
a symbiotic interface between industry and government.
Confederation of Indian Industry Western Region
105, Kakad Chambers
1st Floor, 132 Dr Annie Besant Road
Worli, Mumbai4OOOI8
Tel +91 22 24931790
Fax+91 22 24939463
Email ciiwr@ciionline.org Confederation of Indian Industry State Office
203-204, Sears Towers
Gulbai Tekra
Near Panchvati, Ellisbridge
Ahmedabad 380 006
Tel +91 79 26469843/26469346
Fax+91 79 26462878
Email ciiguj@ciionline.org
Web www.ciionline.org
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