- Details
- Benefits
- Eligibility
- Exclusions
- Application Process
- Documents Required
- Frequently Asked Questions
- Sources And References
- Feedback
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Gujarat
Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance of Capital Investment Subsidy (Manufacturing Sector)
Business
Capital Investment Subsidy
Entrepreneurship
MSMEs
Start Up
Details
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 Taluka | Quantum 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. |
| 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. |
| 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. |
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
Online
Registration Process:
Step-1: Visit the Investor Facilitation Portal (IFP) 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.
Post-Registration Process:
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.
Documents Required
- Printed copy of the application along with declaration and undertaking in the application form signed by an authorized person, including their designation and name with the enterprise's stamp.
- Copy of acknowledgment of Udyog Aadhaar / Udyam Registration.
- Copy of term loan sanction letter.
- Copy of term loan account statement / bank certification of first disbursement certificate.
- Copy of the constitution of the enterprise (registered partnership deed for partnerships).
- Copy of DPR of the enterprise (for projects up to ₹5 crores); for projects above ₹5 crores, DIC will ask for a bank appraisal report.
- Shop & Establishment Certificate (for service sector enterprises in municipal corporations).
- Copy of GST registration (if applicable).
- Copy of PAN card of the enterprise.
- Copy of ITR for the last financial year showing plant & machinery value (new enterprises must submit a self-declaration for the first time).
- Copy of birth certificate/school leaving certificate (for entrepreneurs under 35 years as of the bank loan sanction date).
- Copy of caste certificate from a competent authority.
- Copy of certificate for differently abled persons from a competent authority.
- Copy of CTE issued by the GPCB (if applicable).
- Self-certified/certified copy of documents such as 7/12 Utara, Namuna 6, copy of index, property card, etc. (any one).
- NA permission (if applicable).
- Copy of notarized rent deed (agreement) with the owner's proof/affidavit for ownership of land/property.
- Copy of lease deed (agreement) with the owner's proof of ownership of land/property.
- Copy of the property tax receipt (for service activities).
- Board resolution for signing authority (in case of partnerships, LLPs, Pvt. Ltd., or Limited Companies).
- Declaration and undertaking regarding other investments in Gujarat.
- Annexure of the balance sheet showing the gross fixed capital investment of the previous financial year.
- CA certificate showing the gross fixed capital investment before initiating expansion/diversification/forward or backward integration.
Frequently Asked Questions
What is the "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" aims to position Gujarat as a global business destination by promoting sustainable manufacturing, inclusive development, and balanced regional growth.
What is the duration of the scheme?
The scheme is effective from August 7, 2020, and will remain in operation until August 6, 2025.
What is the objective of the component "Assistance of Capital Investment Subsidy"?
The component "Assistance of Capital Investment Subsidy"is a financial support scheme designed to encourage enterprises in the manufacturing sector to invest in capital assets by providing subsidies on term loans.
Who is eligible to apply for the subsidy?
Any enterprise in the manufacturing sector that has availed a term loan from a recognized bank or financial institution and meets the required conditions is eligible to apply for the subsidy.
Can an enterprise apply for the subsidy after commencing production?
Yes, an enterprise can apply after starting production, but the application must be submitted within one year of loan disbursement or before the commencement of commercial production, whichever is later.
What happens if an enterprise does not remain operational for 7 years?
If an enterprise fails to remain in production for at least 7 years, the disbursed capital investment subsidy will be recovered as arrears of land revenue.
Can an enterprise avail subsidies from both State and Central Governments?
Yes, an enterprise can avail subsidies from both the State and Central Governments, but the total subsidy amount cannot exceed the total loan disbursed by the bank or financial institution.
Are there any employment conditions that an enterprise must fulfill?
Yes, an enterprise must ensure that at least 85% of its total employees and 60% of its managerial and supervisory staff are local residents.
Can an enterprise apply if the loan is taken from a Non-Banking Financial Institution (NBFC)?
No, only loans sanctioned and disbursed by recognized banks and financial institutions under RBI guidelines are eligible for the subsidy.
Can an existing enterprise apply for the subsidy?
Yes, an existing enterprise can apply if it is undertaking Forward Integration, Backward Integration, or Diversification, provided that its additional investment is more than 25% of the Gross Fixed Capital Investment (GFCI), with at least 60% of the investment in plant and machinery.
What types of investments qualify for the subsidy?
The subsidy covers investments in new buildings, new plant machinery/equipment, and second-hand imported machinery.
What environmental regulations must an enterprise comply with?
An enterprise must comply with pollution control measures as prescribed by the Gujarat Pollution Control Board (GPCB) or any other competent authority.
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It seems you have already initiated your application earlier.To know more please visit
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You're being redirected to an external website. By proceeding, your details will be shared with the relevant department.
Your mobile number will be shared with Jan Samarth and you will be redirected to external website.
Something went wrong. Please try again later.
You have already submitted an application for this scheme. You may apply again only after 30 days i.e. after
It seems you have already initiated your application earlier.To know more please visit
Apply Now
Check Eligibility
Gujarat
Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance of Capital Investment Subsidy (Manufacturing Sector)
Business
Capital Investment Subsidy
Entrepreneurship
MSMEs
Start Up
Details
Benefits
Eligibility
Exclusions
Application Process
Documents Required
Frequently Asked Questions
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.
Was this helpful?
Share
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