Gujarat Warehousing & Logistics Policy 2021–26
The Gujarat Warehousing & Logistics Policy 2021–26 has been introduced by the Government of Gujarat to strengthen the state’s logistics and warehousing infrastructure. Gujarat is already one of India’s most industrially developed states, with strong ports, highways, rail connectivity, and industrial corridors. This policy further supports investors who want to build warehouses, godowns, logistics parks, and storage facilities in the state.
The main objective of this policy is to reduce logistics costs, improve supply chain efficiency, and attract private investment into the warehousing and logistics sector.
Who Should Consider This Policy?
This policy is beneficial for:
Investors planning to build warehouses or godowns
Developers planning logistics parks
Businesses involved in storage, distribution, and supply chain operations
MSMEs and large enterprises looking for long-term rental income
Landowners who want to develop their land for warehousing purposes
If you are planning a new warehousing project in Gujarat, this policy can significantly reduce your project cost and improve profitability.
Capital Subsidy: Major Cost Reduction
One of the most attractive benefits under this policy is the capital subsidy. The government provides a 25% subsidy on fixed capital investment, which includes:
Construction of warehouse buildings
Civil works
Plant and machinery
The maximum capital subsidy available is ₹15 crore per project. This helps investors recover a large portion of their initial investment, making the project financially stronger from the beginning.
Interest Subsidy: Lower Loan Burden
To support investors who take loans for their projects, the policy offers interest subsidy on bank term loans. Investors can get:
7% interest subsidy
For a period of up to 7 years
This reduces the effective interest cost and helps maintain healthy cash flows, making loan repayment easier and improving project viability.
Stamp Duty Reimbursement: Big Saving on Land Purchase
Land cost is a major expense in any warehousing project. Under this policy, investors can claim 100% stamp duty reimbursement on land purchased for warehousing or logistics projects. This benefit alone can save several lakhs or even crores, depending on the land value.
Electricity Duty Exemption: Lower Operating Cost
Warehouses consume a significant amount of electricity for lighting, handling equipment, and operations. To reduce operational expenses, the policy provides:
100% electricity duty exemption
For the first five years of operation
This helps investors improve operational margins and increase net returns.
Technology Adoption & Quality Support
The policy encourages modern and efficient warehousing by offering:
50% reimbursement on the cost of advanced technology adoption
Financial support for quality certifications
Support for patent registration
These incentives help investors develop technology-driven, future-ready warehouses, which are more attractive to large clients and MNCs.
Employment Conditions
To promote local employment, the policy requires:
At least 85% of total employees to be local residents
At least 60% of managerial and supervisory staff to be from Gujarat
This ensures local skill development and social impact along with business growth.
Eligibility & Operational Conditions
To avail the benefits under this policy:
Minimum project investment should be ₹1 crore
The project must remain operational for at least 10 years
All approvals must be obtained within the prescribed timeline
These conditions ensure serious, long-term investment in the warehousing sector.
The Gujarat Warehousing & Logistics Policy 2021–26 provides a complete support system for investors by reducing project cost, financing burden, and operational expenses. For investors looking for stable, long-term returns in the warehousing sector, this policy offers a strong foundation for success.
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