Industrial areas we serve · the Bharuch belt
Subsidy consultant for Ankleshwar GIDC, Panoli, Jhagadia, Dahej SEZ and Vilayat
Ankleshwar, Panoli, Jhagadia, Dahej, Vilayat and Saykha make Bharuch district the heartland of Gujarat’s chemicals and petrochemicals — and every one of those estates sits in a Category B taluka under the Viksit Gujarat Industrial Policy 2026. We file the capital, interest and power tariff subsidies, the electricity duty exemption and the MOOWR or EPCG scheme for MSMEs and for the Large and Mega units that must register by 8 December 2026 — with the District Industries Centre at Bharuch, DGFT Vadodara and the Custom House at Dahej.
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Bharuch district: Ankleshwar, Jhagadia, Vagra, Bharuch, Hansot, Valia, Jambusar and Amod are Category B; Netrang is the district’s only Category A taluka.
- Bcategory of Ankleshwar, Jhagadia, Vagra (Dahej, Vilayat, Saykha) and Bharuch talukas
- 25%of EFCI as capital subsidy for an MSME in a Category B taluka; 10–35% for Large, Mega and Ultra Mega units
- 100%electricity duty exemption for 5 years from the date production starts; 10 for a new unit in Dahej SEZ
On this page
Industrial estates in the Bharuch belt: talukas, categories and DISCOM
Three things fixed by the plot decide what a unit here earns: the taluka’s category under the Viksit Gujarat Industrial Policy 2026 — Ankleshwar, Jhagadia, Vagra, Bharuch, Hansot, Valia, Jambusar and Amod are Category B; Netrang is Category A — the DISCOM that bills the power, and the offices that handle the file. The estates and their talukas are below; Ankleshwar GIDC and Dahej have pages of their own.
- District
- Bharuch
- DISCOM
- DGVCL across the district; Torrent Power holds the distribution licence for Dahej SEZ
- DGFT (EPCG)
- Regional Authority Vadodara — Vadodara, Anand, Kheda, Panchmahal, Dahod, Bharuch and Narmada under Appendix 1A, with the districts since carved out of them
- Customs (MOOWR)
- Custom House, Dahej, for the port’s LNG, chemical and bulk jetties; the MOOWR licence is issued by the Customs Commissionerate with jurisdiction over the plant, which we confirm before filing
- Sanctioning offices
- District Industries Centre, Bharuch, for MSME claims; Industries Commissionerate, Gandhinagar, for Large, Mega and Ultra Mega units
Swipe sideways to see every column
| Estate | Taluka | District | Category |
|---|---|---|---|
| Ankleshwar GIDC (1,072 ha, notified 1978) | Ankleshwar | Bharuch | B |
| Panoli GIDC (1,053 ha) | Ankleshwar | Bharuch | B |
| Jhagadia GIDC (1,839 ha) | Jhagadia | Bharuch | B |
| Dahej GIDC, Dahej SEZ and the PCPIR | Vagra / Bharuch | Bharuch | B |
| Vilayat GIDC (536 ha) | Vagra | Bharuch | B |
| Saykha GIDC | Vagra | Bharuch | B |
| Bharuch GIDC | Bharuch | Bharuch | B |
Categories are as listed in the annexure to the taluka GR of 8 September 2026 (IMD/HMR/e-file/9/2026/2211/I). Several talukas were newly created when the list was drawn up and can differ from their neighbours, so we confirm the category in writing before you file.
What a unit in the Bharuch belt earns under VGIP 2026
The table reads the three VGIP 2026 GRs for the talukas of the Bharuch belt. The first column is where most plots in the belt fall; the Large columns are the general-sector and thrust-sector matrices of the GR of 8 September 2026 (chemicals, textiles, capital equipment, mobility, healthcare and the other thrust sectors are listed in its Annexure-A). Electricity duty exemption and EPF reimbursement are statutory and sit outside the ceiling in every column.
Swipe sideways to see every column
| Component | MSME, Category B | MSME, Category A (Netrang) | Large, general sectors (B) | Large, thrust sectors (B) |
|---|---|---|---|---|
| Capital subsidy | 25% of EFCIover 5 years; micro units in one instalment | 35% of EFCIover 5 years; micro units in one instalment | 10% of EFCIover 10 years | 15% of EFCIover 8 years |
| Interest subsidyon the term loan; 8% for women, first-generation and registered start-up MSMEs | 7% a year5 years, up to 10% of EFCI | 7% a year5 years, up to 10% of EFCI | 7% a year10 years, up to 10% of EFCI | 7% a year8 years, up to 15% of EFCI |
| Power tariff subsidyon units bought from the DISCOM | ₹1 a unit5 years, up to 25% of EFCI | ₹2 a unit5 years, up to 25% of EFCI | ₹1 a unit10 years, up to 10% of EFCI | ₹1 a unit8 years, up to 15% of EFCI |
| Combined ceilingthe three above, together | 35% of EFCIover 5 years; 7% a year for small and medium units | 45% of EFCIover 5 years; 9% a year for small and medium units | 15% of EFCIover 10 years; 1.5% a year | 25% of EFCIover 8 years; 3.5% a year |
| Electricity duty exemption | 100% for 5 years from the date production starts10 years for a new SEZ unit; statutory under the Gujarat Electricity Duty Act 1958, outside the ceiling, the same for every size and category | |||
| EPF reimbursement | 100% for 5 yearsof the employer’s EPF on new employees, up to ₹1,800 / ₹2,500 / ₹3,000 a month; outside the ceiling | 100% for 5 yearsof the employer’s EPF on new employees, up to ₹1,800 / ₹2,500 / ₹3,000 a month; outside the ceiling | 100% for 10 yearsof the employer’s EPF on new employees, same monthly caps; outside the ceiling | 100% for 8 yearsof the employer’s EPF on new employees, same monthly caps; outside the ceiling |
The ceiling, not the rates, usually sets the number. Capital, interest and power tariff subsidy together cannot exceed 35% of EFCI over five years for an MSME in a Category B taluka (45% in Category A), and 15% over ten years for a Large unit in a general sector (25% over eight for a thrust sector). A power-hungry plant that could earn more than that from the power tariff subsidy alone is therefore placed in the components that pay earliest and most reliably — which is a filing decision, not a formula.
Which incentives apply in the Bharuch belt
The same package applies in every belt of Gujarat; what the belt sets is the rate (by taluka category), the DISCOM whose bills carry the power tariff subsidy and the electricity duty, and the customs and DGFT offices that take the MOOWR and EPCG files. For the Bharuch belt that means Category B rates on every estate, DGVCL’s bills — Torrent Power’s inside Dahej SEZ — as the claim documents, Regional Authority Vadodara for EPCG and the Custom House at Dahej for bonded cargo.
Capital subsidy in Gujarat
25% of eligible fixed capital investment for an MSME in a Category B taluka (35% in Category A); 10% to 35% for Large, Mega and Ultra Mega units, paid in annual instalments within the combined ceiling.
Interest subsidy in Gujarat
7% a year on the term loan in every taluka, 8% for women, first-generation and registered start-up MSMEs; the unit bears at least 2%. Five years for MSMEs, capped at 10% of EFCI; eight to twelve years for larger units.
Power tariff subsidy in Gujarat
₹1 a unit on power bought from DGVCL (Torrent Power inside Dahej SEZ) in the Category B talukas (₹2 in Category A), for five years for MSMEs, capped at 25% of EFCI. Captive power does not count; an expansion claims only its additional consumption on a sub-meter.
Electricity duty exemption in Gujarat
No electricity duty — 15% of consumption charges on HT, 10% on LT — for five years from the date production starts, ten for a new SEZ unit. Applied for at CEICED within 90 days of production; statutory, outside the VGIP ceiling, and available inside GIDC estates.
MOOWR and EPCG
No customs duty upfront on imported machinery and inputs under MOOWR (duty on inputs only when goods are sold in India), or zero duty under EPCG against exports of six times the duty saved within six years, filed at Regional Authority Vadodara. Central schemes, so they stack on the Gujarat package.
EPF reimbursement and the connection refund
100% of the employer’s EPF on new employees, up to ₹1,800 to ₹3,000 a month each, for five years (MSMEs) to ten, outside the ceiling. And for MSMEs outside GIDC estates and approved parks, 35% of the DISCOM’s service-line charges back, up to ₹5 lakh.
What the Bharuch belt makes, and the schemes that fit
A chemical plant’s money is in its power bill; an engineering unit’s in its machinery and its loan; a labour-intensive plant’s in its EPF. The belt’s main sectors and the components that matter most for each:
Swipe sideways to see every column
| Sector | Where | Schemes that usually matter most |
|---|---|---|
| Chemicals, dyes and agrochemicals | Ankleshwar, Panoli, Jhagadia | power tariff subsidy in Gujarat on the process load, the electricity duty exemption in Gujarat for five years, capital and interest subsidy on new plant; the CETPs and the final effluent pipeline to Dahej meet the chemical thrust sector’s condition for Large units |
| Petrochemicals and bulk chemicals | Dahej PCPIR and SEZ | Large, Mega and Ultra Mega registration under the Viksit Gujarat Industrial Policy 2026 by 8 December 2026; electricity duty exemption (10 years for a new SEZ unit); MOOWR scheme on imported feedstock and machinery |
| Pharma and APIs | Ankleshwar, Jhagadia, Dahej | Capital subsidy; EPCG scheme or MOOWR on imported reactors and analytical equipment; EPF reimbursement in Gujarat on new hires |
| Textiles and technical textiles | Jhagadia | Gujarat Textile Policy 2024 or VGIP 2026, compared on our sector-wise subsidy schemes in Gujarat page |
| Engineering and fabrication | Bharuch, Jhagadia, Vilayat | Capital and interest subsidy for MSMEs; the power connection refund for units outside the GIDC estates |
Worked example: a specialty-chemicals MSME at Jhagadia
A specialty-chemicals plant in Jhagadia GIDC with ₹20 crore of eligible investment, a ₹12 crore term loan and a 3 MW connection — a small enterprise by plant-and-machinery value, since the machinery is under ₹25 crore. Jhagadia is Category B: 25%, 7% and ₹1 a unit, with a 35% combined ceiling.
₹20 crore specialty-chemicals plant, Jhagadia
Glass-lined reactors, a multi-effect evaporator and a 3 MW connection: the power tariff subsidy alone would exceed the ceiling.
- Eligible fixed capital investment (plant, machinery, building; land excluded): ₹20 crore
- Term loan of ₹12 crore at 9.5%, 7-year tenure with a 1-year moratorium, repaid in equal annual instalments; the unit bears 2.5% after the 7% subsidy
- Contracted load 3,000 kW, run 6,000 hours a year — 18 million units bought from the DISCOM
- Small enterprise (plant and machinery up to ₹25 crore, counted across all units), chemicals, new unit
- Capital subsidy, 25% of EFCI₹5 crore
- Interest subsidy, 7% on the balance for 5 years (₹3.36 crore before the 10% cap)₹2 crore
- Power tariff subsidy, ₹1 a unit on 18 million units a year for 5 years (₹9 crore before the 25% cap)₹5 crore
- The three components added₹12 crore
- Combined ceiling, 35% of EFCI over 5 years₹7 crore
₹7 crore under VGIP 2026, not ₹12 crore. The three components add up to more than the combined ceiling, so the ceiling is the answer — and the file is built so the chemical unit reaches it in five years, with the electricity duty exemption in Gujarat and EPF reimbursement claimed on top, outside the ceiling.
Figures are illustrative and rounded; the GR’s eligible fixed capital investment excludes land, working capital and second-hand machinery, and the interest subsidy runs only on the term loan actually disbursed. Our capital subsidy worked example, interest subsidy worked example and power tariff subsidy worked example walk through each component year by year, and the Gujarat subsidy calculator applies the right category to any taluka in the belt.
How a claim runs for a unit in the Bharuch belt
Every file in the Bharuch belt passes through the same offices: the District Industries Centre at Bharuch for MSME claims, the Industries Commissionerate in Gandhinagar for Large units and above, CEICED online for the electricity duty exemption, Regional Authority Vadodara for EPCG and the jurisdictional Customs Commissionerate for MOOWR. We prepare, file and follow each one.
Fix the category and the dates
We read the plot’s taluka from the land record, confirm its category in writing, and set the project’s dates: investment counted from 1 January 2026, the date of commercial production, and the first deadline that follows from it.
Before you spendRegister where the size requires it
Large, Mega and Ultra Mega units register with the Industries Commissionerate before production or by 8 December 2026, whichever is later; MSMEs need no registration step but apply for the provisional or final eligibility certificate within six months of the date of commercial production.
Before productionFile the statutory and central applications on their own clocks
The electricity duty exemption online to CEICED within 90 days of production; the MOOWR application to the jurisdictional Customs Commissionerate before the first bonded import; EPCG at Regional Authority Vadodara before the machinery lands.
To each scheme’s clockClaim with the sanctioning office
The District Industries Centre at Bharuch takes the MSME claims for capital, interest and power tariff subsidy, the quarterly EPF claims and the connection refund; the Industries Commissionerate takes the Large claims. Queries and asset verification are answered on site.
Follow every instalment
Annual instalments over five years for small and medium units, quarterly EPF, MOOWR returns, and the DISCOM’s refund of duty paid before the exemption certificate — tracked until the money is in the account.
The dates that decide a claim in the Bharuch belt
Four dates do most of the work in a VGIP 2026 claim, and all four are fixed by the GRs rather than by the estate. Investment counts from 1 January 2026; Large, Mega and Ultra Mega units must be registered before production or by 8 December 2026, whichever is later (see our note on the 8 December 2026 registration deadline); the electricity duty exemption is applied for within 90 days of the first production; and commercial production must start before the operative period ends on 31 May 2031.
- 1 Jan 2026Assets bought and paid for from this date count as eligible investment
- 8 Dec 2026Registration deadline for Large, Mega and Ultra Mega units, or before production if later
- 90 daysAfter production starts: electricity duty exemption application to CEICED
- 31 May 2031The operative period ends; production must start within it
MSMEs apply for the provisional eligibility certificate within six months of the date of commercial production or of 25 September 2026, whichever is later; a late application within two years is accepted with the incentive reduced in proportion to the delay. The power connection refund is claimed within six months of paying the DISCOM’s charges; EPCG is authorised before the machinery is imported; a MOOWR licence is in place before the first bonded consignment.
The Bharuch belt: questions we get asked
Is Ankleshwar Category A or Category B under VGIP 2026?
Category B. The taluka GR of 8 September 2026 lists Ankleshwar — which holds Ankleshwar GIDC and Panoli — as Category B, with Jhagadia, Vagra, Bharuch, Hansot, Valia, Jambusar and Amod. The only Category A taluka in Bharuch district is Netrang. We confirm the category in writing before you file.
Does a Dahej SEZ unit get the electricity duty exemption for ten years?
Yes. A new industrial unit in a special economic zone is exempt from electricity duty for ten years from the date production starts, against five years elsewhere; Torrent Power, the SEZ’s distribution licensee, stops charging the duty once CEICED’s certificate is on record. The application goes in within 90 days of production.
Is a chemical plant here a thrust sector unit?
For Large, Mega and Ultra Mega units, yes: chemicals and petrochemicals — specialty, agro, dyes and pigments, bulk, fluorochemicals, polymers and more — are sector 8 of Annexure-A, on condition that the unit has a captive effluent treatment plant or access to a CETP. Ankleshwar, Panoli, Jhagadia and Dahej all have common treatment and a final effluent disposal route. The thrust matrix pays 15% capital subsidy over eight years in Category B with a 25% ceiling. MSMEs take the general MSME matrix regardless.
Which DGFT office handles EPCG for Ankleshwar and Dahej?
The Regional Authority at Vadodara, not Surat: Appendix 1A places Bharuch and Narmada districts with Vadodara, Anand, Kheda, Panchmahal and Dahod. The authorisation must be issued before the machinery is imported.
Where does a Dahej or Ankleshwar MOOWR file go?
The MOOWR licence under Section 65 of the Customs Act comes from the Customs Commissionerate with jurisdiction over the plant; bonded cargo itself clears through the Custom House at Dahej or Hazira. The licence must be in force before the first bonded consignment, and the unit files its monthly returns thereafter.
A PCPIR project will start production in 2027. When does it register?
Before the date of commercial production or by 8 December 2026, whichever is later — the Large GR gives three months from its date of 8 September 2026. Register with the IEM, land possession, GPCB consent to establish, the detailed project report and the term loan sanction; a project that does not register cannot claim.
Does a unit inside Ankleshwar GIDC get the power connection refund?
No. The 35% refund of service-line charges, up to ₹5 lakh, is for MSMEs outside GIDC estates and approved industrial parks. Capital, interest and power tariff subsidy, EPF reimbursement and the electricity duty exemption all apply inside the estates.
Legal basis and official sources
Every rate on this page is the published term of the scheme it links to, read from the GRs and the Act; the taluka categories come from the taluka GR’s annexure.
Classification of talukas: Category A and B
Annexure-A lists all 268 talukas, district by district, as Category A or Category B — the source for every category on this page.
Download the GRScheme for assistance to MSMEs
Capital, interest and power tariff subsidy, EPF reimbursement and the power connection refund: rates, periods, ceilings and sanctioning authorities.
Download the GRScheme for assistance to Large, Mega and Ultra Mega industries
The general, thrust and selected-thrust matrices, the registration rule, PEC and FEC timelines and the sanctioning committees.
Download the GRNotes. Taluka categories are read from the annexure to the taluka GR; DISCOM areas from the distribution licences in force; DGFT jurisdictions from Appendix 1A of the Handbook of Procedures; Customs jurisdictions from CBIC Notification 21/2022-Customs (N.T.) of 31 March 2022; sector descriptions are ours. Estate boundaries, approved-park status and the DISCOM for a specific plot are confirmed with the GIDC, the DISCOM and the District Industries Centre before filing. Scheme notices are published by the Industries Commissionerate, Gujarat.
We work with units across Bharuch district from our office in Ahmedabad: the eligibility check is free and names every scheme, figure and deadline for your plot.
- Taluka category confirmed in writing before you commit the land
- Registration and eligibility certificates timed to the date of commercial production
- Electricity duty exemption filed with CEICED within 90 days; MOOWR and EPCG before the first import
- Claims filed and followed at the District Industries Centre at Bharuch
Setting up or expanding in Bharuch, Ankleshwar, Dahej and Jhagadia?
One free eligibility check: the taluka category confirmed in writing, every scheme that applies, the figures and the first deadline.