Industrial areas we serve · Saurashtra
Subsidy consultant for Rajkot, Shapar–Veraval, Metoda, Morbi, Jamnagar, Bhavnagar and Alang
Saurashtra is Gujarat’s engineering and ceramics country: Rajkot’s castings, forgings, diesel engines and auto components at Aji, Shapar–Veraval and Metoda; the Morbi–Wankaner ceramic cluster; Jamnagar’s brass parts and the refinery belt; Bhavnagar’s rolling mills and the Alang ship-recycling yard; Thangadh and Wadhwan in Surendranagar. Most of the industrial talukas are Category B under the Viksit Gujarat Industrial Policy 2026, but Alang (Talaja), Limbdi, Chotila and the whole of Botad district are Category A. PGVCL supplies the power, the DGFT Regional Authority is in Rajkot and the Jamnagar Customs Commissionerate covers the peninsula. We file the capital, interest and power tariff subsidies, the electricity duty exemption and the MOOWR or EPCG scheme for units across the region.
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Rajkot, Morbi, Jamnagar, Bhavnagar and Surendranagar districts: the city estates and the ceramic cluster are Category B; Talaja (Alang), Jodiya, Maliya, Vinchhiya, Jamkandorna and seven Surendranagar talukas including Limbdi, Sayla and Chotila are Category A; all four Botad talukas are A.
- B / ARajkot, Metoda, Shapar–Veraval, Morbi and Jamnagar are Category B; Alang, Limbdi, Chotila and Botad are Category A
- 25% / 35%of EFCI as capital subsidy for an MSME in a Category B / Category A taluka
- 100%electricity duty exemption for 5 years from the date production starts
On this page
Industrial estates in Saurashtra: 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 — Rajkot, Lodhika, Kotda Sangani, Gondal, Jetpur, Paddhari, Jasdan, Upleta and Dhoraji (Rajkot); Morbi, Wankaner, Tankara and Halvad (Morbi); Jamnagar, Lalpur, Jamjodhpur, Kalavad and Dhrol (Jamnagar); Bhavnagar, Sihor and Mahuva (Bhavnagar); Wadhwan, Thangadh and Dhrangadhra (Surendranagar) are Category B; Vinchhiya and Jamkandorna (Rajkot), Maliya (Morbi), Jodiya (Jamnagar), Talaja, Ghogha, Palitana, Umrala, Vallabhipur, Gariadhar and Jesar (Bhavnagar), Lakhtar, Chuda, Muli, Sayla, Limbdi, Dasada and Chotila (Surendranagar) and all of Botad district are Category A — the DISCOM that bills the power, which is PGVCL throughout, and the offices that handle the file. The estates and their talukas are below.
- Districts
- Rajkot, Morbi, Jamnagar, Bhavnagar and Surendranagar; also Botad, Amreli, Junagadh, Gir Somnath, Porbandar and Devbhumi Dwarka on request
- DISCOM
- PGVCL (Paschim Gujarat Vij Company) across Saurashtra
- DGFT (EPCG)
- Regional Authority Rajkot — the Saurashtra districts excluding Kutch, under Appendix 1A
- Customs (MOOWR)
- Commissioner of Customs (Preventive), Jamnagar, whose jurisdiction under CBIC Notification 21/2022-Customs (N.T.) covers Rajkot, Porbandar, Surendranagar (except Dasada) and the other Saurashtra districts; cargo clears at Bedi, Sikka, Pipavav, Bhavnagar or Porbandar
- Sanctioning offices
- District Industries Centres at Rajkot, Morbi, Jamnagar, Bhavnagar and Surendranagar for MSME claims; Industries Commissionerate, Gandhinagar, for Large, Mega and Ultra Mega units
Swipe sideways to see every column
| Estate | Taluka | District | Category |
|---|---|---|---|
| Aji GIDC, Bhaktinagar and Metoda (Lodhika) GIDC | Rajkot / Lodhika | Rajkot | B |
| Shapar–Veraval industrial area | Kotda Sangani | Rajkot | B |
| Gondal and Jetpur GIDC | Gondal / Jetpur | Rajkot | B |
| Morbi–Wankaner ceramic cluster, Tankara, Halvad | Morbi / Wankaner / Tankara / Halvad | Morbi | B |
| Jamnagar GIDC (Phases I–III) and the Motikhavdi refinery belt | Jamnagar / Lalpur | Jamnagar | B |
| Bhavnagar GIDC (Chitra) and Sihor | Bhavnagar / Sihor | Bhavnagar | B |
| Alang–Sosiya ship-recycling yard | Talaja | Bhavnagar | A |
| Wadhwan GIDC and Thangadh ceramics | Wadhwan / Thangadh | Surendranagar | B |
| Limbdi GIDC and Chotila | Limbdi / Chotila | Surendranagar | A |
| Botad and Gadhada | Botad / Gadhada | Botad | A |
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 Saurashtra earns under VGIP 2026
The table reads the three VGIP 2026 GRs for the talukas of Saurashtra. 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 (Alang (Talaja), Limbdi, Chotila, Botad) | 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 Saurashtra
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 Saurashtra that means Category B rates on the city estates and the ceramic cluster and Category A at Alang, Limbdi, Chotila and in Botad, PGVCL’s bills as the claim documents, Regional Authority Rajkot for EPCG and the Jamnagar Customs Commissionerate for MOOWR.
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 PGVCL 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 Rajkot. 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 Saurashtra 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 |
|---|---|---|
| Engineering, castings, forgings and auto components | Rajkot, Shapar–Veraval, Metoda | Capital and interest subsidy; EPCG scheme on imported machine tools; power tariff subsidy in Gujarat on the foundry load; EPF reimbursement in Gujarat on new hires |
| Ceramics and vitrified tiles | Morbi, Wankaner, Thangadh | Ceramics is listed in the metals and minerals thrust sector for Large units; MSME tile units take the general Category B package, with the power tariff subsidy in Gujarat on kilns and presses and the electricity duty exemption in Gujarat |
| Brass parts and non-ferrous components | Jamnagar | Capital and interest subsidy for the cluster’s MSMEs; EPF reimbursement on new hires; MOOWR or EPCG on imported machinery |
| Refining, petrochemicals and energy | Jamnagar, Lalpur, Vadinar | Large, Mega and Ultra Mega registration under the Viksit Gujarat Industrial Policy 2026 by 8 December 2026; electricity duty exemption on industrial consumption |
| Ship recycling, rolling mills and re-rolling | Alang, Sihor, Bhavnagar | Alang’s Talaja taluka is Category A — 35% capital subsidy and ₹2 a unit for MSMEs; Sihor and Bhavnagar run on Category B; the electricity duty exemption in Gujarat on furnace loads |
| Agro processing, cotton and oil | Gondal, Jetpur, Surendranagar | Agro and food processing is a thrust sector for Large units; MSMEs take capital and interest subsidy and the power connection refund outside GIDC estates |
Worked example: a vitrified-tile MSME at Morbi
A tile plant at Morbi with ₹18 crore of eligible investment, an ₹11 crore term loan and a 1.2 MW connection — the kilns run on gas, so the power bill is smaller than a chemical plant’s. Morbi is Category B: 25%, 7% and ₹1 a unit, with a 35% combined ceiling.
₹18 crore vitrified-tile plant, Morbi
A press, a gas-fired kiln, polishing lines and a spray dryer; a small enterprise by plant-and-machinery value, general sector for an MSME.
- Eligible fixed capital investment (plant, machinery, building; land excluded): ₹18 crore
- Term loan of ₹11 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 1,200 kW, run 6,000 hours a year — 7.2 million units bought from the DISCOM
- Small enterprise, ceramic tiles, new unit; gas from the city network, power from PGVCL
- Capital subsidy, 25% of EFCI₹4.5 crore
- Interest subsidy, 7% on the balance for 5 years (₹3.08 crore before the 10% cap)₹1.8 crore
- Power tariff subsidy, ₹1 a unit on 7.2 million units a year for 5 years (₹3.6 crore before the 25% cap)₹3.6 crore
- The three components added₹9.9 crore
- Combined ceiling, 35% of EFCI over 5 years₹6.3 crore
₹6.3 crore under VGIP 2026, not ₹9.9 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 tile 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 Saurashtra
Every file in Saurashtra passes through the same offices: the District Industries Centres at Rajkot, Morbi, Jamnagar, Bhavnagar and Surendranagar for MSME claims, the Industries Commissionerate in Gandhinagar for Large units and above, CEICED online for the electricity duty exemption, Regional Authority Rajkot 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 Rajkot before the machinery lands.
To each scheme’s clockClaim with the sanctioning office
The District Industries Centres at Rajkot, Morbi, Jamnagar, Bhavnagar and Surendranagar 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 Saurashtra
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.
Saurashtra: questions we get asked
Is Rajkot Category A or Category B under VGIP 2026?
Category B. The taluka GR of 8 September 2026 lists Rajkot, Lodhika (Metoda GIDC), Kotda Sangani (Shapar–Veraval), Paddhari, Gondal, Jetpur, Jasdan, Upleta and Dhoraji as Category B; the Category A talukas of Rajkot district are Vinchhiya and Jamkandorna. A unit at Aji, Metoda or Shapar–Veraval therefore earns 25% capital subsidy as an MSME, ₹1 a unit and a 35% ceiling. We confirm the category in writing before you file.
Is Morbi Category A or B?
Category B — Morbi, Wankaner, Tankara and Halvad are all Category B, so the ceramic cluster runs on 25%, 7% and ₹1 a unit with a 35% ceiling. Maliya is the one Category A taluka of Morbi district. Thangadh, the other ceramics town, is Category B in Surendranagar district.
Alang is Category A. What does a ship-recycling or rolling-mill unit there earn?
Alang–Sosiya lies in Talaja taluka of Bhavnagar district, which the GR lists as Category A, so an MSME there earns 35% of EFCI as capital subsidy, ₹2 a unit of power tariff subsidy and a 45% combined ceiling; a Large unit reads the Category A column — 15% capital subsidy over ten years in a general sector, 25% over eight in a thrust sector. Sihor and Bhavnagar talukas next door are Category B. Eligibility still turns on the unit being a manufacturing enterprise with the registrations the GRs require.
Which Surendranagar talukas are Category A?
Seven of ten: Lakhtar, Chuda, Muli, Sayla, Limbdi, Dasada and Chotila. Wadhwan (Surendranagar city and its GIDC), Thangadh and Dhrangadhra are Category B. A plot on the Limbdi–Sayla–Chotila corridor along the Ahmedabad–Rajkot highway therefore earns the higher rates; Wadhwan GIDC does not.
Is all of Botad district Category A?
Yes — Botad, Gadhada, Barwala and Ranpur are all Category A in the taluka GR, so an MSME anywhere in the district earns 35% capital subsidy, ₹2 a unit and a 45% ceiling. PGVCL supplies the power and the District Industries Centre at Botad takes the claims.
Where are EPCG and MOOWR filed for a Rajkot or Jamnagar unit?
EPCG at the DGFT Regional Authority in Rajkot, whose jurisdiction under Appendix 1A is the Saurashtra districts excluding Kutch. The MOOWR licence comes from the Commissioner of Customs (Preventive), Jamnagar, which covers the Saurashtra districts under CBIC Notification 21/2022-Customs (N.T.); bonded cargo clears at Bedi, Sikka, Pipavav, Bhavnagar or Porbandar, or through Mundra.
Does a Morbi tile unit count as a thrust sector?
Ceramics, refractories, tableware and glass are listed under sector 4, metals and minerals, in Annexure-A of the Large GR — so a Large tile or sanitaryware unit (plant and machinery above ₹125 crore) earns the thrust matrix: 15% capital subsidy over eight years in Category B with a 25% ceiling. An MSME tile unit takes the general MSME matrix; the sector does not change it.
Does a unit inside Metoda or Shapar–Veraval get the power connection refund?
Metoda is a GIDC estate, so no; Shapar–Veraval is largely private industrial land, where an MSME that pays PGVCL’s service-line charges can claim 35% back, up to ₹5 lakh, within six months of payment — unless the plot sits in an approved industrial park. Every other component applies in both.
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 Rajkot, Morbi, Jamnagar, Bhavnagar and Surendranagar 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 Centres at Rajkot, Morbi, Jamnagar, Bhavnagar and Surendranagar
Setting up or expanding in Saurashtra: Rajkot, Morbi, Jamnagar and Bhavnagar?
One free eligibility check: the taluka category confirmed in writing, every scheme that applies, the figures and the first deadline.