Policy guide · Updated 7 October 2026
Viksit Gujarat Industrial Policy 2026: the complete guide to subsidies, eligibility and deadlines
Gujarat’s industrial policy for 1 June 2026 to 31 May 2031 pays manufacturers a package of capital, interest and power tariff subsidy worth up to 35–45% of eligible fixed capital investment (EFCI) for MSMEs and 15–40% for Large, Mega and Ultra Mega units — up to 50% in five selected thrust sectors — plus EPF reimbursement and electricity duty exemption outside that ceiling. This guide reads the three Government Resolutions so you don’t have to.
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Capital, interest and power tariff subsidy share one combined ceiling, set by unit size, sector and taluka category. Category A talukas (less industrialised) get the higher figure; Category B the lower.
- 5 yrsoperative period: 1 Jun 2026 – 31 May 2031
- 3subsidies in one ceiling: capital, interest, power tariff
- 268talukas classed Category A (130) or B (138)
On this page
What the Viksit Gujarat Industrial Policy 2026 is
The Viksit Gujarat Industrial Policy 2026 (VGIP 2026) is the Government of Gujarat’s industrial incentive policy for five years from 1 June 2026. Its two main schemes — one for MSMEs (GR dated 25 September 2026) and one for Large, Mega and Ultra Mega industries (GR dated 8 September 2026) — pay capital subsidy, interest subsidy and power tariff subsidy to manufacturing units that start commercial production between 1 June 2026 and 31 May 2031, within a combined ceiling of 15% to 50% of eligible fixed capital investment, plus EPF reimbursement and electricity duty exemption outside that ceiling.
It replaces the Aatmanirbhar Gujarat Schemes of 2022 for new projects. Three documents set the rules: the policy booklet (the vision and the full list of promises), the two scheme GRs (the operative terms that sanctioning authorities apply) and a taluka GR that puts every taluka in Category A or B. Where the booklet and a GR differ, the GR prevails — and this page follows the GRs.
- Policy period
- 1 June 2026 to 31 May 2031. Production must begin inside this window; investment counts from 1 January 2026.
- Who it pays
- New manufacturing units, and existing units that expand or diversify, with Udyam Registration (MSMEs) or an IEM or other Government of India licence (Large and above).
- Core package
- Capital subsidy + interest subsidy (7% a year on term loans) + power tariff subsidy (₹1–2 per unit), chosen in any mix inside one ceiling.
- Outside the ceiling
- 100% EPF employer-contribution reimbursement for 5–10 years, electricity duty exemption under the 1958 Act, and stamp duty reimbursement for Ultra Mega and selected-thrust units.
- Where you are matters
- Category A talukas earn the higher rate in every table; Category B the lower. 130 talukas are A, 138 are B.
- Sector matters too
- 16 thrust sectors unlock higher Large-unit rates and Mega/Ultra Mega status; five selected thrust sectors get the highest rates at every size.
Already in production before 1 June 2026? You stay on the Aatmanirbhar Gujarat Scheme. Units that had not started production by that date can choose either scheme — but only inside a six-month option window (see dates and deadlines).
Aatmanirbhar Gujarat Scheme (2022) vs Viksit Gujarat Industrial Policy 2026
VGIP 2026 widens who qualifies and changes how the money is paid: the MSME limit rises from ₹50 crore to ₹125 crore of plant & machinery, capital subsidy becomes a percentage of EFCI for all MSMEs (not a loan-linked grant for micro units only), a per-unit power tariff subsidy is added, three taluka categories become two, and for Large units the net-SGST reimbursement model gives way to capital, interest and power tariff subsidy inside one ceiling.
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| What | Aatmanirbhar Gujarat (2022) | VGIP 2026 |
|---|---|---|
| Operative period | 5 Oct 2022 – 4 Oct 2027 | 1 Jun 2026 – 31 May 2031 |
| MSME upper limit (plant & machinery) | ₹50 crore | ₹125 crore — many “large” units of 2022 are MSMEs now |
| Capital subsidy — MSMEs | Micro units only: 10–25% of the term loan, up to ₹10–35 lakh by taluka | Micro, small and medium: 25% (B) or 35% (A) of EFCI; 30–35% in selected thrust sectors |
| Interest subsidy — MSMEs | 5–7% by taluka, up to ₹25–35 lakh a year, 5–7 years | 7% in every taluka (8% for women, start-ups and first-generation entrepreneurs), 5 years, up to 10% of EFCI (20% in selected thrust sectors) |
| Power tariff subsidy | Not a component | ₹2 (A) or ₹1 (B) per unit for 5–12 years, inside the ceiling |
| Large units | Net SGST reimbursement was the headline benefit | Capital, interest and power tariff subsidy, 15–40% combined ceiling; no SGST component |
| Taluka categories | Three (I, II, III), 251 talukas | Two (A, B), 268 talukas |
| New unit classes | Large, Mega | Large (P&M above ₹125 crore), Mega (₹1,000 crore + 250 jobs, thrust sector), Ultra Mega (₹10,000 crore + 3,000 jobs, thrust sector) |
Old-scheme figures are from the 2022 MSME GR. For a unit still inside the option window, the better scheme depends on its numbers — the old scheme’s net SGST reimbursement can still outweigh the new capital subsidy for some projects. We model both before you exercise the option.
Who qualifies under VGIP 2026
A manufacturing enterprise qualifies if it is a new unit, or an existing unit carrying out an expansion or diversification, and it starts commercial production between 1 June 2026 and 31 May 2031. MSMEs need Udyam Registration (or an IEM, letter of intent or MCA21 filing); Large, Mega and Ultra Mega undertakings must register with the Industries Commissionerate before production starts (or by 8 December 2026 if later) and hold an IEM, MCA21 filing or other Government of India licence.
New unit
A legal entity — company, LLP, partnership, proprietorship, co-operative or trust — setting up a manufacturing project that starts production inside the policy period. Expansion at a different site counts as a new unit if it keeps separate books and separately identifiable investment.
Expansion
Gross fixed capital investment (excluding land) up by at least 50%, with at least 60% of that in plant & machinery, and installed capacity up by at least 50%. Small, medium and large units must also have used 75% of existing capacity in one of the three preceding financial years; micro units are exempt from the utilisation test. An expansion is eligible only a year after the existing unit’s project completion or DoCP.
Diversification
A new product line at the same premises, with gross fixed capital investment up by at least 25% (micro and small enterprises) or 50% (medium and Large units) of the existing project, at least 60% of it in plant & machinery. Renovation, rehabilitation or rationalisation of an existing plant does not qualify, and a unit that already drew a state incentive on the same investment cannot claim again.
Size classes and what decides them
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| Class | Threshold | Extra condition |
|---|---|---|
| Micro | Plant & machinery up to ₹2.5 crore | Udyam Registration |
| Small | Plant & machinery above ₹2.5 crore, up to ₹25 crore | Udyam Registration |
| Medium | Plant & machinery above ₹25 crore, up to ₹125 crore | Udyam Registration |
| Large | Plant & machinery above ₹125 crore | Registration with Industries Commissionerate |
| Mega | GFCI of at least ₹1,000 crore | At least 250 direct jobs (+50 for every further ₹200 crore) and a thrust sector |
| Ultra Mega | GFCI of at least ₹10,000 crore | At least 3,000 direct jobs (+500 for every further ₹5,000 crore) and a thrust sector |
MSME status is decided on the date the project is completed, so a unit that grows past ₹125 crore of plant & machinery during the investment period is assessed as Large. A project above ₹1,000 crore that misses the employment test, or is outside the thrust sectors, is treated as a Large unit.
Employment conditions apply to every claim. At least 85% of all employees, and 60% of managerial and supervisory staff, must be domiciled in Gujarat. A GPCB certificate is required where applicable, and the unit must stay in production for the whole incentive period or repay with 18% interest a year.
Three components, one combined ceiling
Every VGIP 2026 package is built from the same three components — Component-1 capital subsidy (a percentage of EFCI), Component-2 interest subsidy (7% a year on the term loan that funds EFCI, the unit always bearing at least 2%) and Component-3 power tariff subsidy (₹2 per unit in Category A talukas, ₹1 in Category B). A unit may take any one or any mix, but each component has its own cap and all three together cannot exceed the combined ceiling for the unit’s size, sector and taluka, nor the annual ceiling for any one year.
Component-1 · Capital subsidy
A grant calculated on eligible fixed capital investment — new building, plant & machinery, utilities and the other items the GRs allow (land, working capital and second-hand machinery are out). Paid over the incentive period; micro units get theirs in year one. Capital subsidy in detail →
Component-2 · Interest subsidy
7% a year on the term loan actually disbursed against EFCI (8% for MSMEs of women entrepreneurs, registered manufacturing start-ups and first-generation entrepreneurs). No subsidy on penal interest or default periods. Interest subsidy in detail →
Component-3 · Power tariff subsidy
₹2 or ₹1 per unit of power bought from a DISCOM or through open-access renewable supply, for the incentive period; captive generation does not count and an expansion claims only its additional consumption on a sub-meter. Power tariff subsidy in detail →
Read the ceiling, not just the component. A general-sector MSME in a Category B taluka can earn up to 25% capital subsidy, 10% interest subsidy and 25% power tariff subsidy on paper — but the combined ceiling is 35% of EFCI over five years, with an annual ceiling of 7% for small and medium units. Model the mix before the bank sanctions the loan; our combined subsidy calculator does the arithmetic by taluka.
MSME subsidies under VGIP 2026: capital, interest and power tariff
An MSME in a general sector can claim capital subsidy of 25% (Category B) or 35% (Category A) of EFCI, interest subsidy of 7% a year for five years up to 10% of EFCI, and power tariff subsidy of ₹1 or ₹2 per unit for five years up to 25% of EFCI — all within a combined ceiling of 35% (B) or 45% (A) of EFCI over five years. In the five selected thrust sectors the capital rate is 30–35%, the interest and power caps rise to 20% each, and the combined ceiling is 45–50%.
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| Taluka | Component-1 · Capital | Component-2 · Interest | Component-3 · Power tariff | Combined ceiling (5 yrs) |
|---|---|---|---|---|
| General sectors | ||||
| Category A | 35% of EFCImicro: in 1 year · small/medium: over 5 years | 7% a year, 5 yearsup to 10% of EFCI | ₹2 per unit, 5 yearsup to 25% of EFCI | 45%annual: 9% (micro: 37% in year 1, then 2%) |
| Category B | 25% of EFCImicro: in 1 year · small/medium: over 5 years | 7% a year, 5 yearsup to 10% of EFCI | ₹1 per unit, 5 yearsup to 25% of EFCI | 35%annual: 7% (micro: 27% in year 1, then 2%) |
| Selected thrust sectors (sports goods, toys, footwear, robots, drones) | ||||
| Category A | 35% of EFCImicro: in 1 year · small/medium: over 5 years | 7% a year, 5 yearsup to 20% of EFCI | ₹2 per unit, 5 yearsup to 20% of EFCI | 50%annual: 10% (micro: 38% in year 1, then 3%) |
| Category B | 30% of EFCImicro: in 1 year · small/medium: over 5 years | 7% a year, 5 yearsup to 20% of EFCI | ₹1 per unit, 5 yearsup to 20% of EFCI | 45%annual: 9% (micro: 33% in year 1, then 3%) |
Annual ceilings are per year of EFCI and cannot be carried forward. The extra 1% interest subsidy for women entrepreneurs, registered manufacturing start-ups and first-generation entrepreneurs sits inside the same ceilings. Investment counts from 1 January 2026 and may continue for 12 months after the date of commercial production (18 months if plant & machinery exceeds ₹50 crore).
The rest of the MSME scheme
The MSME GR carries fourteen more components, each with its own six-month application window. The main ones:
- EPF reimbursement — 100% of the employer’s statutory contribution for new employees for five years from DoCP, up to ₹1,800 a month per male, ₹2,500 per female and ₹3,000 per specially-abled employee (para 7).
- CGTMSE fees — 100% of the annual service fee on a collateral-free term loan, for five years, paid along with the interest subsidy (para 15).
- Rent — 65% of rent on a leased shed (75% for a 100% women-owned enterprise), up to ₹3 lakh a year for five years, for micro and small units (para 17).
- Power connection charges — 35% of DISCOM charges for a new LT/HT service line, up to ₹5 lakh, outside GIDC and approved parks (para 16). Power connection refund →
- Quality and ZED — 50% of national/international certification fees and testing equipment up to ₹10 lakh; 65% of ERP cost up to ₹1 lakh; 50% of ZED certification charges after Government of India support, up to ₹50,000 (paras 8–9).
- Technology, ICT and patents — 65% of technology acquisition cost up to ₹50 lakh; 65% of ICT/Industry 4.0 capex up to ₹5 lakh; 75% of patent costs up to ₹25 lakh per enterprise (paras 10–12).
- Energy and water — 75% of an energy or water audit up to ₹50,000 each, and 25% of recommended equipment up to ₹20 lakh if consumption falls at least 10% (para 13).
- SME exchange listing — 25% of fund-raising expenses up to ₹5 lakh after a successful listing (para 14).
- Electricity duty — exemption as applicable under the Gujarat Electricity Duty Act, 1958 (para 18). How the exemption works →
Selected-thrust-sector MSMEs also get 100% stamp duty and registration charge reimbursement on project land, 75% of IPR costs up to ₹1 crore, 65% of technology acquisition up to ₹1 crore, 100% of international certification fees up to ₹5 crore, training support of ₹8,000 per employee per month for 12 months, 50% of a creative design studio up to ₹5 crore, and — for micro units and artisans — 80% of AI subscription fees up to ₹1 lakh a year for three years (para 19).
Subsidies for Large, Mega and Ultra Mega units
Large units in general sectors get a combined ceiling of 20% (Category A) or 15% (Category B) of EFCI over ten years; in the 16 thrust sectors it is 35% or 25% over eight years. Mega units (₹1,000 crore and 250 jobs in a thrust sector) get 35% or 30% over ten years, Ultra Mega units (₹10,000 crore and 3,000 jobs) 40% or 35% over twelve years, and any of them in a selected thrust sector 50% or 45%. Each class also has an annual ceiling and an absolute cap of ₹150 crore to ₹1,250 crore a year.
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| Unit · sector | Period | Capital subsidy | Interest subsidy | Power tariff subsidy | Combined ceiling |
|---|---|---|---|---|---|
| Large · general | 10 yrs | 15% / 10% | 7% a yearup to 15% / 10% | ₹2 / ₹1 per unitup to 15% / 10% | 20% / 15%annual 2% / 1.5% · max ₹150 Cr a year |
| Large · thrust | 8 yrs | 25% / 15% | 7% a yearup to 20% / 15% | ₹2 / ₹1 per unitup to 20% / 15% | 35% / 25%annual 4.5% / 3.5% · max ₹300 Cr a year |
| Mega · thrust | 10 yrs | 25% / 20% | 7% a yearup to 25% / 20% | ₹2 / ₹1 per unitup to 25% / 20% | 35% / 30%annual 3.5% / 3% · max ₹750 Cr a year |
| Ultra Mega · thrust | 12 yrs | 30% / 25% | 7% a yearup to 25% / 20% | ₹2 / ₹1 per unitup to 25% / 20% | 40% / 35%annual 3.5% / 3% · max ₹1,250 Cr a year |
| Large · selected thrust | 8 yrs | 35% / 30% | 7% a yearup to 20% / 20% | ₹2 / ₹1 per unitup to 20% / 20% | 50% / 45%annual 6.5% / 6% · max ₹300 Cr a year |
| Mega · selected thrust | 10 yrs | 35% / 30% | 7% a yearup to 20% / 20% | ₹2 / ₹1 per unitup to 20% / 20% | 50% / 45%annual 5% / 4.5% · max ₹750 Cr a year |
| Ultra Mega · selected thrust | 12 yrs | 35% / 30% | 7% a yearup to 20% / 20% | ₹2 / ₹1 per unitup to 20% / 20% | 50% / 45%annual 4.5% / 4% · max ₹1,250 Cr a year |
Capital subsidy is paid in equal annual instalments over the incentive period. Investment counts from 1 January 2026 and may continue 18 months after DoCP for projects up to ₹1,000 crore, 24 months up to ₹10,000 crore, 36 months up to ₹1,00,000 crore and 48 months beyond that. Mega and Ultra Mega projects in thrust sectors may also be offered a customised package by a High-Power Committee chaired by the Chief Minister.
Registration comes first for Large units. Apply to the Industries Commissionerate before commercial production or by 8 December 2026, whichever is later, with the IEM, land documents, GPCB consent where applicable, the project report and any loan sanction. No registration, no claim — and the PEC application is due within three months of DoCP or registration.
Which sector gets what under VGIP 2026
VGIP 2026 sorts manufacturing into three tiers. General sectors get the base rates. The 16 thrust sectors listed in Annexure-A of the Large GR lift Large units to higher rates and are the only route to Mega and Ultra Mega status. The five selected thrust sectors — sports goods and equipment, toys, footwear, robots and drones — carry the highest rates at every size and extra reimbursements for stamp duty, IPR, technology, certification, training and design studios.
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| Sector tier | MSME | Large | Mega | Ultra Mega | Also |
|---|---|---|---|---|---|
| General manufacturing | 45% / 35% | 20% / 15% | — | — | EPF, electricity duty exemption, MSME extras |
| Thrust sectors (16) | 45% / 35%same as general for MSMEs | 35% / 25% | 35% / 30% | 40% / 35% | Mega/Ultra Mega status possible; stamp duty for Ultra Mega |
| Selected thrust sectors (5) | 50% / 45% | 50% / 45% | 50% / 45% | 50% / 45% | Stamp duty, IPR, technology, certification, training, design studio |
The 16 thrust sectors
- Green energy ecosystem (hydrogen, solar, wind, batteries, fuel cells)
- Mobility: EVs, autos & components
- Capital equipment, electrical machinery, wires & cables
- Metals & minerals, ceramics, glass, cement
- Textiles & apparel, technical textiles
- Sustainability & recycling equipment
- Agro & food processing
- Chemicals & petrochemicals*
- Healthcare, medical devices & pharmaceuticals*
- Ancillaries to semiconductor industries
- Nuclear power equipment (incl. SMR)
- Vehicle scrapping facilities
- E-waste recycling units
- Textile-waste recycling units
- Shipping containers
- Heavy earth-moving equipment
- Selected: sports goods & equipment
- Selected: toys
- Selected: footwear
- Selected: robots
- Selected: drones
*Chemical and pharmaceutical units qualify as thrust-sector units only with a captive effluent treatment plant or membership of a CETP. The scheme committee can add sectors to either list. For a Gujarat cluster this means, for example, a ceramic plant in Morbi, a textile unit in Surat or a dyes unit in Ankleshwar sits in a thrust sector for Large-unit purposes — but as an MSME it earns the general-sector rates unless it is in one of the five selected sectors.
Related guides: sector-wise incentive consultancy · MOOWR scheme · EPCG scheme · GeM registration · EPF reimbursement.
Benefits that come on top: EPF, electricity duty and stamp duty
Three benefits sit outside the combined ceiling. EPF reimbursement returns 100% of the employer’s statutory contribution for new employees — for 5 years (MSMEs), 8 years (Large, thrust sectors) or 10 years (Large general, Mega and Ultra Mega) — up to ₹1,800 a month per male, ₹2,500 per female and ₹3,000 per specially-abled employee. Electricity duty exemption applies as provided in the Gujarat Electricity Duty Act, 1958. Stamp duty and registration charges on project land are reimbursed 100% to Ultra Mega units and to selected-thrust-sector units of every size.
- EPF — who counts
- Employees without a prior UAN who join during the incentive period and work in Gujarat; for an expansion, only the increase in headcount. Claimed quarterly against payment receipts; not available for any period already covered by another government EPF scheme. Our EPF reimbursement guide →
- Electricity duty
- New industrial units apply to the Chief Electrical Inspector under the 1958 Act; the exemption runs from the date of production, so the application clock starts the day the first bill is raised. Our electricity duty exemption guide →
- Stamp duty
- Only on land bought or leased during the eligible investment period, paid after commercial production starts, and claimed within six months of DoCP (MSMEs) or three months (Large and above). The reimbursed amount drops out of EFCI.
- Central schemes
- You may stack a Government of India scheme, but state plus central incentives cannot exceed EFCI, and the unit must still bear 2% interest after both subsidies.
Start-ups, women entrepreneurs, R&D, green manufacturing and worker housing
Beyond the two scheme GRs, the Viksit Gujarat Industrial Policy 2026 document promises support for start-ups, women and SC/ST entrepreneurs, industrial R&D, environmental upgrades, worker housing and the relocation of units from congested areas. These are stated in the policy booklet; the figures below are from that document and will operate through separate GRs, which we will link here as they are issued.
Start-ups
Sustenance allowance of ₹25,000 a month (₹30,000 with a woman co-founder) for a year; seed support up to ₹30 lakh, plus ₹10 lakh for societal-impact and ₹10 lakh for deep-tech start-ups, to a maximum of ₹50 lakh; an extra 1% interest subsidy (up to 9%); acceleration support of ₹5 lakh and soft-skills training of ₹1 lakh.
Women and SC/ST entrepreneurs
Women-led enterprises: 1% additional interest subsidy and 75% rent reimbursement up to ₹3 lakh a year for five years. SC/ST entrepreneurs: a 5% higher combined ceiling than the standard matrix.
Research & development
The first five R&D centres investing ₹300 crore or more: 50% of capex up to ₹50 crore a year; other centres above ₹100 crore: 25% up to ₹20 crore a year. Patent support of 75% up to ₹15 lakh per patent (25 per centre over ten years); DSIR-recognised in-house R&D 50% up to ₹50 crore; international certification 25% up to ₹10 lakh, for up to five certifications.
Environment
Cleaner-production equipment 50% up to ₹1 crore (MSMEs) or 25% up to ₹2 crore (Large); zero-liquid-discharge systems 50% up to ₹5 crore per MLD (MSMEs) or 40% up to ₹7.5 crore per MLD (Large and above); CETP water-recycling 50% up to ₹75 crore where at least 70% is recycled, else 40% up to ₹50 crore; common boilers 40% up to ₹30 crore.
Housing for workers
Dormitory housing for industrial workers: 80% of cost up to ₹40 crore for common facilities built by industrial associations or developers, 40% up to ₹40 crore for a unit’s own hostel.
Project T.H.R.I.V.E and clusters
A relocation package for units moving out of congested or non-conforming areas into GIDC estates and industrial parks, a State-level SCALE committee for value-chain and export plans, Udyog Sahay Kendras on a hub-and-spoke model, and the Mukhyamantri Udyog Rojgar Sahay Yojana for industry internships.
Policy-document figures, not yet operative through a GR. The booklet itself says the Government Resolutions prevail over its text; treat these as the direction of travel and confirm the operative terms before you commit.
Category A or Category B: how your taluka sets the rate
The Taluka Category GR (No. IMD/HMR/e-file/9/2026/2211/I dated 8 September 2026) classifies all 268 talukas of Gujarat into Category A (130 talukas, less industrialised, higher rates) and Category B (138 talukas). The category is fixed by where the plant is located and applies to every scheme under VGIP 2026, replacing the three-category list of 2020.
Most established industrial talukas are Category B: in the Ahmedabad district that includes Sanand, Bavla, Dholka, Daskroi, Viramgam and Ahmedabad City, while Dholera and Dhandhuka are Category A. Around Bharuch, Jhagadia, Vagra (Dahej), Ankleshwar, Hansot, Valia, Jambusar and Amod are Category B and Netrang is A. Morbi, Wankaner, Tankara and Halvad; Rajkot; Surat City; Vadodara, Savli, Padra, Karjan and Vaghodia; Valsad, Vapi, Pardi and Umbergaon; Halol and Kalol; Mehsana, Kadi and Visnagar; and Gandhidham, Anjar and Mundra in Kachchh are all Category B. Category A examples include Becharaji, Vadnagar, Kheralu, Maliya (Morbi), Rapar, Lakhpat, Nakhatrana, Dharampur, Kaprada, Dediapada and Sagbara (Narmada), Songadh and Nizar (Tapi), Chotila, Limbdi and Lakhtar (Surendranagar) and all three Dangs talukas.
Confirm the category in writing before you buy land. New talukas were carved out in 2025–26 and several sub-talukas are listed in brackets under their parent. The GR’s Annexure-A is the only authority — download it below or ask us to confirm your plot’s category.
The VGIP 2026 calendar: option window, registration and claims
Investment counts from 1 January 2026; the policy runs from 1 June 2026 to 31 May 2031. Large units must register by 8 December 2026 or before production, whichever is later. A unit not yet in production on 1 June 2026 may opt for the Aatmanirbhar Gujarat Scheme instead — by 8 March 2027 (Large) or 25 March 2027 (MSMEs) — provided it starts production by 4 October 2027; the choice is final. Eligibility-certificate applications are due within six months of DoCP for MSMEs and three months for Large units.
1 January 2026 — investment clock starts
Assets acquired and paid for from this date count towards EFCI under both GRs, even though the policy itself starts five months later.
Keep every invoice and payment proof from this date1 June 2026 — policy period opens
Commercial production on or after this date brings a unit under VGIP 2026. Production before it keeps the unit on the Aatmanirbhar Gujarat Scheme.
Policy period: 1 Jun 2026 – 31 May 20318 September and 25 September 2026 — the GRs
The Large/Mega/Ultra Mega GR and the taluka GR were issued on 8 September; the MSME GR on 25 September. Every six-month and three-month window in the schemes is counted from these dates or from DoCP, whichever is later.
Download both GRs below8 December 2026 — Large-unit registration
Large, Mega and Ultra Mega undertakings must apply for registration with the Industries Commissionerate before commercial production or within three months of the GR, whichever is later. Late applications are not eligible.
PEC within 3 months of DoCP or registration8 March 2027 / 25 March 2027 — option window closes
Units not in production before 1 June 2026 must exercise the option for the previous scheme within six months of the relevant GR — Large units by 8 March 2027, MSMEs by 25 March 2027. The option is final and irrevocable, and the previous scheme is available only if production starts by 4 October 2027.
Model both schemes before you chooseWithin 6 months of DoCP (MSMEs) — PEC or FEC
Apply for the Provisional Eligibility Certificate (issued for up to 40% of EFCI) or, if the investment is complete, directly for the Final Eligibility Certificate. Applications up to two years late are cut in proportion to the delay; after that they are not entertained. For Large units the window is three months and the outer limit one year.
25 March 2027 at the earliest for MSMEs31 May 2031 — policy period ends
Production must have started by this date. The extended investment period (12–18 months for MSMEs, 18–48 months for Large and above) can run beyond it, but only for projects already in production.
Claims continue through the incentive period
How we help with Viksit Gujarat Industrial Policy 2026 claims
NeoApex Saver Pvt Ltd (formerly Apex Consultants) has worked on Gujarat industrial incentives for over two decades — through the 2009, 2015 and 2020 industrial policies and the Aatmanirbhar Gujarat Schemes. On a VGIP 2026 file we:
- Confirm taluka category, unit class and sector tier against the GRs, in writing, before you commit capital or sign the loan
- Model the capital, interest and power tariff mix within the combined and annual ceilings — and compare it with the old scheme while the option window is open
- Structure EFCI: which assets go in, which stay out, and the invoices and payment proofs behind each
- File registration, PEC and FEC applications inside their windows, then EPF, electricity duty and the smaller MSME components alongside
- Support asset verification and every annual or quarterly disbursement claim through the incentive period
Viksit Gujarat Industrial Policy 2026: frequently asked questions
What is the Viksit Gujarat Industrial Policy 2026?
It is the Government of Gujarat’s industrial incentive policy for five years from 1 June 2026 to 31 May 2031. Through separate Government Resolutions for MSMEs (25 September 2026) and for Large, Mega and Ultra Mega industries (8 September 2026), it pays capital subsidy, interest subsidy and power tariff subsidy within a combined ceiling of 15% to 50% of eligible fixed capital investment, plus EPF reimbursement, electricity duty exemption and, for some units, stamp duty reimbursement.
How much subsidy can an MSME get under VGIP 2026?
In general sectors, up to 35% of EFCI in a Category B taluka and 45% in Category A over five years, built from capital subsidy (25% or 35% of EFCI), interest subsidy (7% a year for five years, up to 10% of EFCI) and power tariff subsidy (₹1 or ₹2 per unit for five years, up to 25% of EFCI). In the five selected thrust sectors the ceiling is 45% or 50%.
What is the difference between Category A and Category B talukas?
The taluka GR of 8 September 2026 lists 130 talukas as Category A — the less industrialised ones, which earn the higher rates — and 138 as Category B. The category follows the plant’s location and applies to every VGIP 2026 scheme. Most established industrial talukas, such as Sanand, Morbi, Ankleshwar, Vapi, Halol and Mundra, are Category B.
Which are the thrust sectors under the Viksit Gujarat Industrial Policy 2026?
Annexure-A of the Large GR lists 16 thrust sectors: green energy, mobility and EVs, capital equipment, metals and minerals (including ceramics, glass and cement), textiles and apparel, sustainability and recycling equipment, agro and food processing, chemicals and petrochemicals, healthcare and pharmaceuticals, semiconductor ancillaries, nuclear power equipment, vehicle scrapping, e-waste recycling, textile-waste recycling, shipping containers and heavy earth-moving equipment. Five selected thrust sectors — sports goods, toys, footwear, robots and drones — get the highest rates.
Can a unit still choose the Aatmanirbhar Gujarat Scheme?
Only if it had not started commercial production before 1 June 2026, and only by exercising the option within six months of the relevant GR — by 8 March 2027 for Large units and 25 March 2027 for MSMEs. The option is final and irrevocable, and the previous scheme applies only if production starts by 4 October 2027. Units already in production before 1 June 2026 stay on the old scheme automatically.
Is a term loan compulsory to claim benefits under VGIP 2026?
No. Capital subsidy and power tariff subsidy are calculated on EFCI and consumption, not on a loan; self-financed projects are expressly covered, with investment certified by a statutory auditor, Chartered Accountant, Chartered Engineer or Company Secretary. Only the interest subsidy requires a term loan from an eligible bank or financial institution.
What is eligible fixed capital investment (EFCI)?
The investment the GRs allow a subsidy on: new building, plant and machinery, utilities, dies and moulds, erection and electrification, captive power plant, pollution control equipment and similar items paid for within the eligible investment period. Land, working capital, pre-operative expenses, capitalised interest, second-hand machinery and rented assets are excluded.
What are the deadlines for Large, Mega and Ultra Mega units?
Registration with the Industries Commissionerate before commercial production or by 8 December 2026, whichever is later; a Provisional Eligibility Certificate application within three months of DoCP or registration; and the Final Eligibility Certificate within three months of completing the investment. Applications up to one year late are cut in proportion to the delay.
Does VGIP 2026 reimburse SGST?
No. Unlike the Aatmanirbhar Gujarat Schemes, neither VGIP 2026 GR has a net-SGST reimbursement component. The package is capital, interest and power tariff subsidy inside one ceiling, plus EPF reimbursement, electricity duty exemption and stamp duty reimbursement where applicable.
Do start-ups, women entrepreneurs or SC/ST entrepreneurs get more?
Under the MSME GR, women entrepreneurs, registered manufacturing start-ups and first-generation entrepreneurs get 8% interest subsidy instead of 7%, and 100% women-owned units get 75% rent reimbursement instead of 65%. The policy document also promises start-up sustenance and seed support, and a 5% higher ceiling for SC/ST entrepreneurs, through separate schemes.
Download the VGIP 2026 Government Resolutions
These are the documents every figure on this page comes from. Read them, or send us your project details and we will read them for you.
Scheme for assistance to MSMEs
GR No. IMD/Capital, interest and power tariff subsidy, EPF, CGTMSE, rent, quality, technology and the other MSME components.
Download PDFScheme for Assistance to Large, Mega and Ultra Mega Industries
GR No. IMD/Definitions, incentive matrices for every class, registration and PEC/FEC rules, the thrust-sector list.
Download PDFClassification of talukas: Category A and B
GR No. IMD/Annexure-A lists all 268 talukas, district by district, as Category A or Category B.
Download PDFSources. Industries & Mines Department, Government of Gujarat — the three Government Resolutions above, read in full, and the Viksit Gujarat Industrial Policy 2026 booklet for the sections marked “from the policy document”. Old-scheme figures refer to the Aatmanirbhar Gujarat Scheme for assistance to MSMEs (GR MIS-102022-1271(1)-I(Ch) dated 05.10.2022). Rates are the maximums the GRs allow; your entitlement is fixed by the sanctioning authority after asset verification. The MSME Commissioner and Industries Commissionerate may issue implementation guidelines; we update this page when they appear. Official portals: Industries Commissionerate, Gujarat and the Investor Facilitation Portal.
Know your number before you commit capital
Tell us your taluka, sector, investment and loan plan. We’ll map your capital, interest and power tariff subsidy under the Viksit Gujarat Industrial Policy 2026 — and the registration and option-window deadlines that protect it.