Gujarat State Business & Entrepreneurship

Scheme for Financial Assistance to Integrated Logistics Facilities: Capital Subsidy

Phased capital subsidy · integrated logistics facilities · private developers Gujarat

Private developers building new logistics facilities or parks in Gujarat can claim a phase-wise capital subsidy on construction and infrastructure costs under the Gujarat Integrated Logistics and Logistics Park Policy (valid until August 2026). Funds are released across four milestones as the project is built, with the final 15% after completion. Apply online via Gujarat's Investor Facilitation Portal (IFP) or offline at the Industries Commissionerate.

Industries and Mines Department For: Infra Official Source

About This Scheme

Full official description

The "Scheme for Financial Assistance to Integrated Logistics Facilities" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Integrated Logistics and Logistics Park Policy. Effective from August 2nd, 2021 to August 1st, 2026, this initiative aims to provide financial assistance to the private developer for developing Logistics Facilities and Logistics Park with all required infrastructure and logistic services. The component "Capital Subsidy" is designed to support new projects or units by providing financial assistance for eligible fixed capital investments. The subsidy is aimed at enhancing industrial development and incentivizing investment in infrastructure and construction for qualifying projects.

Benefits

Phase-wise capital subsidy released in 4 installments: 25%, 50%, 75%, then 85% of sanctioned amount
Final 15% of subsidy released only after full project completion
Subsidy based on actual eligible fixed capital expenditure (construction and infrastructure)
No explicit upper cap stated — amount depends on eligible project cost

💡 Why Startups Should Care

The phased disbursement structure — with 15% withheld until completion — ensures capital flows as you actually build, reducing your working capital strain during construction while keeping the developer accountable for delivery.

Who Can Apply (Eligibility)

Only new logistics facility or park projects qualify — existing projects or expansions are excluded
Eligible costs: construction and infrastructure only (land cost, vehicles, consultant fees not included)
Project must follow SOR (Schedule of Rates) norms prescribed by the government
Must obtain all required environmental and statutory clearances before claiming subsidy
Must provide basic driver facilities (toilets, rest areas) at the logistics facility
Must operate and maintain the facility for at least 5 years after commissioning
Warehouse space cannot be used for the developer's own captive storage

Exclusions

Existing units/projects are not eligible under this scheme component

How to Apply

Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
Log in and select the Integrated Logistics Facilities Capital Subsidy component.
Fill in developer company details and project plan.
Upload constitution of developer company and project registration documents.
Submit for phased disbursement as project milestones are achieved.

Frequently Asked Questions

What is the objective of the "Scheme for Financial Assistance to Integrated Logistics Facilities"?

The "Scheme for Financial Assistance to Integrated Logistics Facilities" under the Gujarat Integrated Logistics and Logistics Park Policy, provides financial support to private developers for creating logistics facilities and parks with the necessary infrastructure and services.

What is the purpose of the "Capital Subsidy" component?

The "Capital Subsidy" component aims to provide financial assistance to new units or projects to support industrial growth and development.

Who is eligible for the subsidy under this scheme?

Only new units or projects are eligible for the subsidy, provided they meet all the prescribed criteria.

What costs are considered eligible for the subsidy?

The subsidy is calculated based on eligible fixed capital investments, including construction and infrastructure costs, but excluding land costs.

How is the subsidy amount disbursed?

The subsidy is disbursed in four installments based on actual expenditures, corresponding to 25%, 50%, 75%, and 100% of the sanctioned project cost.

What percentage of the subsidy is retained until project completion?

15% of the eligible subsidy amount is retained and disbursed only after the project is fully completed.

Can an existing business unit apply for this subsidy?

No, the subsidy is exclusively available for new units or projects and does not apply to existing or operational businesses.

How should the subsidy claim be submitted?

The claim must be submitted in a phase-wise manner corresponding to the progress of the project and the actual expenditure incurred.

What is the Schedule of Rates (SOR)?

The Schedule of Rates (SOR) is a government-prescribed framework that outlines standardized costs for construction and infrastructure activities.

What happens after submitting the registration application?

The Industries Commissionerate will scrutinize the application, request missing details within 15 days, and forward it to the concerned District Industries Centre for inspection.

How is the inspection carried out?

The General Manager of the District Industries Centre conducts a site visit and prepares an inspection report.

Who issues the Registration Certificate?

The Industries Commissionerate issues the Registration Certificate after reviewing the inspection report and adhering to the provisions of the GR and guidelines.

Ready to apply?

Visit the official government portal to apply for this scheme.

Apply on myScheme.gov.in

Documents Required

Copy of constitution of developer company/firm
Legal entity registration (Proprietorship, LLP, Co-operative Society, Company, etc.)
Project cost estimates and milestone plan