Bhavnagar is a Category B taluka. Here is exactly what that does to your incentive basket.

Since the Viksit Gujarat Industrial Policy 2026 came into force on 1 June, the first question from almost every serious buyer has been the same: is Bhavnagar taluka Category A or Category B? The answer decides whether an MSME’s basket ceiling is 45% or 35% of eligible fixed capital investment, and whether the power support is ₹2 or ₹1 per unit.

On 8 September 2026 the Industries and Mines Department issued Resolution No. IMD/HMR/e-file/9/2026/2211/I classifying every taluka in the state. There are 130 Category A talukas and 138 Category B. Bhavnagar taluka, where Ocean Industrial Park sits, is Category B. Within Bhavnagar district, Jesar, Umrala, Vallabhipur, Gariadhar, Palitana, Talaja and Ghogha are Category A; Bhavnagar, Mahuva and Sihor are Category B.

What changes, in numbers

• MSME capital subsidy: 25% of eligible investment in Category B, against 35% in Category A.
• Power tariff support: ₹1 per unit for five years in B, against ₹2 in A. Both capped at 25% of eligible investment.
• MSME overall ceiling: 35% in B, 45% in A.
• Large thrust-sector units: 15% capital and a 25% ceiling in B, against 25% and 35% in A.

What does not change

The 7% interest subsidy for five years, capped at 10% of eligible investment, is the same in both categories. So is the 100% reimbursement of the employer’s EPF contribution, the 100% electricity-duty exemption, the thrust-sector list, the additional 1% interest subsidy for women entrepreneurs, the additional 5% for SC/ST entrepreneurs, and the five-year window to 31 May 2031.

A 35% ceiling on a plot that is nineteen kilometres from a port and thirteen from a city beats a 45% ceiling on a plot an hour from either. The basket pays once; the location pays every month.

Why we publish the lower number

Some sellers on this corridor will quote the Category A headline and leave the taluka question to your consultant. We would rather you ran the calculator on this site with the Category B figures, saw the Category A comparison beside it, and made the decision with the smaller number in hand. If you are a Category A buyer by conviction, Ghogha taluka is next door, and we will tell you so.

What to do now

Run the incentive calculator on your unit’s eligible investment, loan and power load. Then ask us for the workings in writing, with the assumptions listed, before you commit to a parcel.