Gujarat clears ₹1,567 crore incentive push for chemical, auto and textile projects

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Gujarat clears ₹1,567 crore incentive push for chemical, auto and textile projects

Synopsis

Gujarat has cleared ₹1,567.18 crore in incentive support for 15 industrial projects in a single sitting — with a ₹999.82 crore chemical sector project in Bharuch dominating the round. The state's cumulative tally under Industrial Policy-2015 now stands at ₹1,48,336 crore in investment and over 1.65 lakh direct jobs, underscoring how Gujarat's SGST-linked incentive model continues to outpace most state industrial frameworks.

Key Takeaways

Gujarat approved incentive support for 15 industrial projects worth ₹1,567.18 crore on 19 June .
The projects are expected to generate approximately 1,238 direct jobs across the state.
The largest single investment — ₹999.82 crore — was in the chemical sector in Bharuch district .
Automobile projects in Ahmedabad (₹75.72 crore) and Surendranagar (₹44.56 crore) were also cleared.
The Incentive to Industries Scheme has cumulatively attracted ₹1,48,336.35 crore in investment and facilitated nearly 1,65,053 direct jobs since 2015.
The meeting was chaired by Deputy Chief Minister and Industries Minister Harsh Sanghavi .

The Gujarat government has approved incentive assistance for 15 major industrial projects with a combined investment of ₹1,567.18 crore under the Incentive to Industries Scheme of the Industrial Policy-2015, according to officials. The projects, cleared at a meeting in Gandhinagar on 19 June, are expected to generate approximately 1,238 direct employment opportunities across the state.

How the Approvals Were Cleared

The clearances were granted at a meeting of the committee responsible for issuing Final Eligibility Certificates to large industrial units under the scheme. The meeting was chaired by Deputy Chief Minister and Industries Minister Harsh Sanghavi and attended by senior officials from the Revenue, Finance, Industries, Forest, and Employment departments.

The scheme provides Net SGST-linked incentive support to eligible industries establishing operations in Gujarat, with the stated aim of promoting manufacturing activity, technological development, and large-scale industrial investment in the state.

Key Sectors and Districts

The single largest investment in this round was recorded in the chemical sector in Bharuch district, valued at ₹999.82 crore — accounting for nearly two-thirds of the total approved outlay. In the automobile sector, projects worth ₹75.72 crore in Ahmedabad district and ₹44.56 crore in Surendranagar district were also cleared. A textile sector project valued at ₹13 crore in Gandhinagar district received approval as well.

Cumulative Impact of the Scheme

According to official data presented at the meeting, the Incentive to Industries Scheme has so far attracted cumulative investments of ₹1,48,336.35 crore in Gujarat and facilitated nearly 1,65,053 direct jobs since its inception under the Industrial Policy-2015. The scheme has also contributed to the expansion of Micro, Small and Medium Enterprises (MSMEs) and the broader industrial ecosystem in the state.

Notably, Bharuch — a well-established petrochemical and chemicals hub on the Delhi-Mumbai Industrial Corridor — continues to attract the lion's share of heavy industrial investment in Gujarat, reinforcing the district's position as a preferred destination for large-scale chemical manufacturing.

Officials Present at the Meeting

The meeting was attended by Additional Chief Secretary of Revenue Department Jayanti Ravi, Additional Chief Secretary of Finance Department T. Natarajan, Industries Commissioner Swaroop P., Director of Employment and Training Stuti Charan, Joint Secretary in the Industries and Mines Department Bhakti Shamal, Director of the Forest and Environment Department Deepali Tank, and Treasurer of the Gujarat Chamber of Commerce Gaurang Bhatt.

With Gujarat gearing up for its next investor summit cycle, approvals of this scale signal continued momentum in the state's industrial outreach — and a sustained focus on chemical and auto-sector anchoring in its western industrial belt.

Point of View

000 crore in a single Bharuch chemical project, however, raises a structural question: is the scheme broadening Gujarat's industrial base or deepening an already dominant petrochemical corridor? With MSMEs cited as beneficiaries but no MSME-specific investment figure disclosed, the headline job count of 1,238 from ₹1,567 crore — roughly ₹1.27 crore per job — warrants scrutiny on whether the scheme's capital-intensity is aligned with the state's employment targets.
NationPress
3 Aug 2026

Frequently Asked Questions

What is the Incentive to Industries Scheme under Gujarat's Industrial Policy-2015?
It is a state government programme that provides Net SGST-linked financial support to eligible large industries setting up or expanding operations in Gujarat. The scheme is designed to promote manufacturing, technological development, and large-scale industrial investment, and has attracted cumulative investments of ₹1,48,336.35 crore and facilitated nearly 1,65,053 direct jobs since its launch.
Which sectors received incentive approval in the latest Gujarat round?
The chemical, automobile, and textile sectors received approvals in the 19 June meeting. The chemical sector in Bharuch district received the largest single clearance at ₹999.82 crore, followed by automobile projects in Ahmedabad and Surendranagar districts, and a textile project in Gandhinagar district.
How many jobs will the newly approved projects create?
The 15 projects approved in this round are expected to generate approximately 1,238 direct employment opportunities, according to official data presented at the meeting.
Who chaired the meeting that cleared these projects?
The meeting was chaired by Deputy Chief Minister and Industries Minister Harsh Sanghavi. It was also attended by senior officials from the Revenue, Finance, Industries, Forest, and Employment departments, as well as a representative from the Gujarat Chamber of Commerce.
Why is Bharuch district significant for Gujarat's industrial investment?
Bharuch is one of India's most established petrochemical and chemical manufacturing hubs, located along the Delhi-Mumbai Industrial Corridor. Its infrastructure, port proximity, and existing industrial clusters make it a preferred destination for large-scale chemical investment, as reflected in the ₹999.82 crore project cleared in this round.
Nation Press
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