The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" launched by the Industries and Mines Department aims to position Gujarat as a global business hub, promoting sustainable manufacturing, MSME growth, and export competitiveness.
Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance of Capital Investment Subsidy (Manufacturing Sector) - Introduction
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports.
Effective from August 7th, 2020 to August 6th, 2025, this initiative supports entrepreneurs and strengthens MSMEs, making them globally competitive. The component "Assistance of Capital Investment Subsidy (Manufacturing Sector)" provides a capital investment subsidy to support MSMEs in the manufacturing sector.
Benefits
Financial Assistance:
Category of TalukaQuantum of Incentive
Category 1: 25% of term loan amount upto ₹35,00,000/-; If the Eligible FCI is over ₹10,00,00,000/-, additional ₹10,00,000/- will be given. (imd.gujarat.gov.in)
Category 2: 20% of term loan amount upto ₹30,00,000/-; If the Eligible FCI is over ₹10,00,00,000/-, additional ₹7,50,000/- will be given. (imd.gujarat.gov.in)
Category 3 & Municipal Corporation Areas: 10% of term loan amount upto ₹15,00,000/-; If the Eligible FCI is over ₹10,00,00,000/-, additional ₹5,00,000/- will be given. (imd.gujarat.gov.in)
Eligibility
- The firm must be a Micro/Small/Medium enterprise.
- The enterprise must be in the manufacturing sector.
- The term loan must be sanctioned by a recognized Bank/Financial Institution (excluding NBFCs).
- The enterprise must apply within one year of loan disbursement or before the commercial production starts.
- The enterprise must remain operational for at least 7 years post-subsidy approval.
- The enterprise must comply with pollution control measures.
- Only one type of investment (Forward Integration, Backward Integration, Diversification, or Expansion) will be eligible for subsidy.
Exclusions
- Loan sanctioned by Non-Banking Financial Institutes will not be eligible for incentives under this resolution.
Application Process
- Step-1: Visit the ifp.gujarat.gov.in portal. Click on "New Investor Registration" to access the registration form.
- Step-2: Fill in the Registration Form. Click on "Submit".
- Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
- Step-4: After verification, you will be registered successfully.
- Step-1: Visit the ifp.gujarat.gov.in portal. Click on "Login".
- Step-2: Enter the email address and password you used during registration.
- Step-3: Click the "Login" button to access your account.
- Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.
Helpdesk: Contact Here.
Definitions
The Enterprises which have obtained first disbursement of term loan as effective step and could not start commercial production on or before 07/08/2020, shall be considered eligible as pipeline enterprise for incentive under previous scheme. Such enterprise should commence commercial production on or before 31/03/2021. However, the enterprise which has obtained first disbursement on or before 07/08/2020 may opt for new scheme. Term Loan disbursement made during the policy period will be eligible for the enterprise which has opted for this scheme.