Gujarat Textile Policy: Assistance to SHG for Job Work

Gross Fixed Capital Investment

Gross Fixed Capital Investment means investment made in Building, Plant and Machinery, Electrification, Tools and Equipment, Accessories, Utilities, Effluent Treatment Plant and other assets, excluding land, required for manufacturing the end product/s.

Only assets acquired and paid for during Eligible Investment Period of the project under this Policy shall be considered as the Gross Fixed Capital Investment (GFCI) for the purpose to determine the eligible Fixed Capital Investment under this Policy.

Eligible Fixed Capital Investment

Eligible Fixed Capital Investment (eFCI) means the following components of investment made during the Eligible Investment Period as per para 3.20 of this GR.

New Building:

A new building means a new building constructed, or acquired as a new and unused building, for the project including administrative building. The cost of the new building shall be calculated as per the actual cost or the Schedule of Rates (SOR) of the relevant year of the R&B Department of the State Government, whichever is lower. Building acquired under lease or on rental basis, except GIDC sheds, will not be considered as Eligible Fixed Capital Investment. No cost incurred on acquisition of old building, or the expenditure incurred on repairing a building, will be considered as Eligible Fixed Capital Investment. Dormitory Housing facilities set up for workers and staff of Industrial Units shall also be eligible.

Plant and Machinery:

Plant and Machinery means new plant and machinery, utilities, dies and moulds, including cost of transportation, foundation, erection, installation and electrification, capitalized under the head of plant and machinery. The electrification cost will include the cost of substation and transformer installed by the Industrial Undertaking at the site.

Plant and machinery shall include:

Plant for captive power generation through renewable.

Plant for pollution control measures, including facility for collection, treatment, disposal of effluent or solid/ hazardous waste, Zero Liquid Discharge Plant (ZLD).

Imported second-hand machinery not more than ten years old and with a residual life of minimum ten years, duly certified by the competent authority such as Chartered Engineer.

Investments towards components other than Plant and Machinery shall be limited only up to 20% of eligible FCI.

Fixed Capital Investment at the workplace of SHG:

Building/Shed constructed at the workplace of SHG

Plant and Machinery installed at the workplace of SHG including installation and electrification.

This investment will be considered as a part of the project, if a legally enforceable job work contract is executed with the SHG for at least a period of five years.

Ineligible Capital Expenditure/Assets

The following expenditure shall not be considered for calculating the Eligible Fixed Capital Investment:

Land and land development cost

Working Capital

Goodwill

Royalty

Preliminary and Pre-operative expenses

Indigenous second-hand Plant & Machinery

Interest Capitalized

Rented or leased property

Anything which has not been included in the eligible FCI.

Term Loan

Term Loan means loan sanctioned by the financial institutions / Banks / External commercial borrowings sanctioned by overseas institutions (except NBFCs) for the setting up of the project by an Industrial Undertaking. However, only the amount actually disbursed during the Eligible Investment Period against the sanctioned Term Loan will be considered for the incentives under this Policy.

Date of Commercial Production (DoCP)

In case of New Industrial Unit, the DoCP shall be the date of First Sale Bill of the product/s for which the project has been set up. In case of Expansion / Diversification / Modernization, the DoCP shall be the date of First Sale Bill of the product/s being manufactured by Expansion/ Diversification / Modernization Project.