Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Saving in Consumption of Energy and WaterScheme StatusScheme Status

The “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)” is an umbrella scheme introduced by the Industries and Mines Department, Government of Gujarat, aimed at boosting Gujarat’s vibrant MSME sector, which plays a key role in employment generation, GDP contribution, and exports.

This component, “Assistance for Saving in Consumption of Energy and Water”, focuses on promoting sustainability in MSMEs by supporting energy and water conservation efforts. It provides reimbursement for energy/water audits and subsidies for implementing recommended equipment that ensures at least 10% reduction in consumption.

Benefits

Energy/Water Audit Reimbursement:
75% of the cost incurred for energy/water audits conducted by a recognized institution/consultant, up to ₹50,000 per audit.
Equipment Subsidy:
25% of the cost of recommended equipment, up to ₹20,00,000 (one-time assistance during the scheme period).

Eligibility

• Must be an existing or new MSME.
• Must conduct an energy/water audit from a recognized institution/consultant.
• Must implement the recommendations from the audit.
• Must achieve at least 10% reduction in energy/water consumption.
• Enterprises with increased consumption due to production growth will be reviewed separately.

Application Process

Online Process
Registration:

  1. Visit the Investor Facilitation Portal (IFP)

  2. Click on “New Investor Registration” and fill in the registration form

  3. Submit and verify your registered email ID

  4. Complete the registration

Post-Registration:

  1. Log in to the IFP portal with your credentials

  2. Fill in your business details and upload required documents

  3. Submit the application form

Documents Required

• Udyam/IEM/LOI Registration certificate
• Constitution of the enterprise
• Self-certified shareholding pattern
• CA certificate for fixed capital investment
• Latest audited balance sheet
• Payment receipt to consultant/institution
• Audit report and recommended equipment list
• Equipment invoices and bills (if applicable)
• Documented proof of 10% energy/water savings
• Project report with benefit analysis
• Third-party proof of results (e.g., electricity/water bills)
• Highlighted bank statement
• PAN card (enterprise/promoters/directors)
• GST registration (if applicable)
• Board resolution/POA/consent letter
• Cancelled cheque
• Other relevant documents

Frequently Asked Questions (FAQs)

  1. What is the “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)”?
    It is a government initiative by Gujarat to support MSMEs in sustainability and competitiveness.

  2. What is the duration of the scheme?
    The scheme is valid from August 7, 2020, to August 6, 2025.

  3. What is the objective of the component “Assistance for Saving in Consumption of Energy and Water”?
    To encourage MSMEs to adopt energy and water-saving technologies and reduce environmental impact.

  4. Who is eligible to apply for this scheme?
    Any existing or new MSME in Gujarat that fulfills the audit and implementation criteria.

  5. What is the maximum financial assistance provided under this scheme?
    Up to ₹50,000 for audits and ₹20,00,000 for equipment subsidies.

  6. Can a newly established enterprise apply for this scheme?
    Yes, newly set-up enterprises are also eligible.

  7. What happens if an enterprise fails to achieve the required 10% reduction in consumption?
    The subsidy may be withheld or reassessed if the 10% savings target is not met.

  8. Can an enterprise apply if its energy or water consumption increases due to higher production?
    Yes, but such cases will be reviewed separately for eligibility.

  9. What type of institutions or consultants can conduct the energy/water audit?
    Only recognized institutions or certified consultants approved by the government.

  10. How will the reimbursement and subsidy be disbursed to the enterprise?
    After verification of claims and documents, the amount is credited to the enterprise’s registered bank account.

  11. Can an enterprise conduct an audit before registration and still be eligible for assistance?
    Only if the audit and implementation fall within the scheme’s operative period and follow guidelines.

  12. Is GST registration mandatory to apply for this scheme?
    Yes, if applicable, the enterprise must submit GST registration details.

Sources and References

• Guidelines
• Online Application Portal

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