• How-to

The Industrial Extension Bureau (iNDEXTb) is the single point contact organization of the Gujarat government. This makes it easy for an entrepreneur to set up a business in the state. Gujarat has seen an average annual growth rate of 10.4 percent over the last five years, while contributing to 16 percent of the industrial production of the country. It has also mobilized the highest share (12.7 percent) of investments through lEMs in the country.

Obtaining provisional SSI registration/filing of IEM/LOI/LOP
Approval for provisional small business registration in the case of small business  units should be taken from the concerned District Industries Center (DIC); in the case of medium and large de-licensed industries as well as licensed industries, approval is needed from Secretariat for Industrial Assistance, Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, New Delhi.

Registrations needed
If you have a proprietorship (individual ownership) business, no registration is required. For a proprietorship comprising 2-20 owners, you should register with the Registrar of Partnership Firms, Ahmedabad. For a Pvt. Ltd. Co. comprising 2-50 shareholders with limited liability, you will have to register with the Registrar of Companies, Gujarat Region, Ahmedabad and for a Public Ltd. Co. with minimum 7 to maximum unlimited numbers with limited liability, you have to register with the Registrar of Companies, Gujarat Region, Ahmedabad.

Land acquisition norms
For land acquired in GIDC (Gujarat Industrial Development Corporation) estate, you should get in touch with the concerned regional office of the GIDC. For government land, you should contact the concerned district collector or DDO under whose jurisdiction the survey numbers fall, with the recommendation of Industries Commissionerate. For private land, deemed NA permission up to 10 hectares should be granted by the concerned district collector or DDO under whose jurisdiction the survey numbers fall.

Pollution Control Board clearance
Barring highly polluting industries, all other items need an NOC to be obtained from the Gujarat Pollution Control Board. For highly polluting industries, first NOC should be obtained and on effective installation of pollution control equipments/satisfactory arrangement for disposal of wastes/effluents, consent should be obtained from the Gujarat Pollution Control Board.

Power arrangement
For sanction of power, you will have to apply to the concerned Circle Office of Gujarat Electricity Board. For captive power, you should apply to the Gujarat Electricity Board and for non-conventional sources of energy, you should apply to the Gujarat Energy Development Agency, Vadodara.

Water arrangement
For units located in GIDC estates, you should get in touch with the Executive Engineer, GIDC of the concerned region and for units located outside GIDC estates for drawing canal water, contact the irrigation department of the Gujarat government.

Approval of building plans
For units located in GIDC estates, you should get in touch with the Executive Engineer, GIDC and for units located outside GIDC estates for bore-well permission, get in touch with local authority. For registration for incentives available, small business units should get in touch with the concerned DIC and others with the office of the Industries Commissionerate of the state government at Gandhinagar.

Loan market
To get term loan up to Rs.240 lakh for acquisition of fixed assets, you should get in touch with the Gujarat State Financial Corporation; for term loan exceeding Rs.240 lakh for acquisition of fixed assets, you should get in touch with Gujarat Industrial Investment Corporation and consortia of other financial institutions/banks and for working capital, you should get in touch with any commercial bank.

Specific Approvals Needed
For food and drug manufacturing units: Commissioner of Food & Drug Administration
Environmental clearance: Forest and Environment Department, Government of Gujarat
Site clearance certificate for LOI holders for converting into IL: Industries Commissionerate, Government of Gujarat, Gandhinagar
Boiler registration: Chief Inspectorate, Steam & Boiler, Government of Gujarat
Mining of minerals: Commissionerate of Geology & Mining, Government of Gujarat
Storage of explosive materials: Directorate of Explosives, Government of India, Vadodara
Environment Impact Assessment: Department of Environment, GoI
Quality registration: Bureau of Indian Standards, Ahmedabad
Import of machinery: Joint Directorate General of Foreign Trade, Ministry of Commerce, GoI, Ahmedabad
Import of raw materials: Joint Directorate General of Foreign Trade, Ministry of Commerce, GoI, Ahmedabad
Handling of hazardous items: Chief Inspector of Factories, Government of Gujarat, Ahmedabad
Factory registration: Chief Inspector of Factories, Government of Gujarat, Ahmedabad
Powerloom registration: DIC/IC/Textile Commissioner

One Stop Shop: The iNDEXTb
In 1978, the Gujarat government formed a single window co-ordination agency, iNDEXTb, to ensure a smooth start to any new venture. Its functions include promoting NRI and foreign direct investments, coordinating with various government departments at the state and central levels, with chambers of commerce and industries associations and monitoring implementation of all industrial approvals through a computerized system.

©Entrepreneur July 2010

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Gujarat, iNDEXTb, Industrial Extension Bureau, industry, set up