Subsidy on Silo Warehouse
Construction of Silo in Warehouse industry is going to increase day by day. Having unique benefits of Silo in storage industry, Govt. owned Agency such as FCI and CWC are going to demand Silo Warehouse for the purpose of Storage of Food Grains throughout the India.
Recently FCI has invited the Tender for Silo in 8 States in form of 18 Projects which are covered 66 Location with 30.75 Lacs MT Capacities.
It will attract MSME Sector for making Investment for Silo Construction. Since Warehousing and Logistics sector is growing to day by day and State Govt has given special focus to attract investment in their state by giving special incentives thereon.
In the interest of Investors, we are sharing herewith some state specific Policy for Warehousing Sector. It will help to them in taking right investment decision with proper financial planning.
These are as:
Subsidy On Silo Warehouse In Haryana :
Haryana state has provided the incentive under Haryana Warehousing Logistics and Retail Policy 2019 for Warehouse Projects. Under this policy following are the major incentives available as:
- Capital Subsidy: 25% of Cost of Construction, Maximum up to Rs. 5.00 Cr.
- Stamp Duty Refund: 100% Refund
Special Note: Project should be located under Block C and D as notified by the State Govt.
Subsidy On Silo Warehouse In Uttarakhand :
Uttarakhand logistics Policy 2023 is applicable for 5 years and having the provision of incentives for Warehousing and Logistic Project.
There is a provision of Capital Subsidy @ 20% of Project cost subject to having following Maximum Cap as:
- For Project Cost up to Rs. 50.00 Cr – Max. up to Rs. 8.00 Cr.
- For Project Cost more then Rs. 50.00 Cr and up to Rs. 150.00 Cr – Capp Up to Rs. 24.00 Cr.
- For Project Cost more then Rs. 150.00 Cr – Capped up to Rs. 32.00 Cr.
In Gujarat :
Gujarat Integrated logistics and logistics Park Policy 2021 was notified on 31.7.2021 and will be in operation till 01.08.2026.
- Capital subsidy to the extent of 25% of EFCI (Eligible Fixed Capital Investment) maximum up to Rs. 15.00 Crore.
- Interest Subsidy: 7% for 7 Years on Bank Term Loan, Maximum up to Rs. 50.00 Lacs Per Year.
- Stamp Duty Refund: 100%
- 100% Electric Duty Exemption
In Uttar Pradesh :
Uttar Pradesh Warehousing and logistics policy 2022:
Silo developed over minimum area of 4 Acres land and minimum capital investment Rs. 30.00 Crore are eligible for incentives under the said policy.
Eligible incentive is as
- 100% Refund of Stamp Duty paid on Buying/Taking Lease of Land.
- 15 % of eligible capital investment or Rs. 5.00 Crore whichever is lower.
- 100% Electric Duty Exemption.
Subsidy On Silo Warehouse In Rajasthan :
As per Rajasthan Investment Promotion Scheme 2022, Para 9.3 of scheme belongs to Logistic parks, warehousing and cold chain.
There is option to choose interest subsidy or capital subsidy.
If able to meet logistic infrastructure definition incentive up to Rs. 15 Crore, else Incentives for Warehouse is Rs. 1.00 crore.
But other cap of 7% interest subsidy for 7 years with cap of 2.5 Crore.
So, you may choose 2.5 Cr minimum /least possible incentive.
Subsidy On Silo Warehouse In Maharashtra :
Package scheme of incentive 2019 valid for 5 years and classify the Warehousing as a thrust Area.
There are Two category i.e D and D+ has notified under the said policy in Maharashtra.
Maximum ceiling of incentive under this scheme is 50% under D category and 60% under D+ category for period of 10 years. Refer page 18/42 of package of incentives Maharashtra. Further There is no direct capital subsidy under Maharashtra logistic Park policy 2018.
For better subsidy planning, readers are advised to consider relevant policy of the state. Readers can also take the benefit of Subsidy Viability Report prepared by KIP.
For, more information on this you are requested to contact our KIP subsidy helpline on Mail – sales@kipfinancial.com and contact Number- +918683898080
KIP Financial Consultancy Pvt. Ltd.
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