Dr.Babasaheb Ambedkar Udyog Uday Yojana: SC/ST MSME Loan 8% Interest Subsidy

The “Dr. Babasaheb Ambedkar Udyog Uday Yojana” is a state-level umbrella scheme launched by the Industries and Mines Department, Government of Gujarat to promote MSME development among SC/ST entrepreneurs. The scheme is effective from August 7, 2020, to August 6, 2025, and aims to promote entrepreneurship, reduce financial burden, and boost the global competitiveness of Gujarat’s MSME sector.

Under the “Assistance for Interest Subsidy (Manufacturing Sector)” component, eligible enterprises are provided interest subsidy on term loans to reduce capital financing costs. Special benefits are extended to women, young entrepreneurs (below 35 years), differently-abled persons, and startups.

Benefits

Interest Subsidy Based on Taluka Category:

Note: Minimum 2% of the loan interest must be borne by the enterprise.

Eligibility

• Must be a Micro, Small, or Medium enterprise operated by an SC/ST entrepreneur

• The business must operate in the manufacturing sector

• The term loan should be sanctioned before the commencement of commercial production

• Loan should be availed from a recognized bank or financial institution

• If solar/renewable energy plant is installed, it must be for captive use

• The enterprise must submit its application within the stipulated time period

• SC/ST enterprise means the contribution of SC/ST entrepreneur should be 51% or more

Exclusions

• Enterprises with loans sanctioned after one year from the commercial production start date

• Enterprises defaulting on loan repayment (as per RBI and bank norms)

• Enterprises requesting reimbursement of penal interest or bank charges

• Enterprises receiving Central Government subsidy that exceeds total interest paid

Application Process

Mode: Online via Investor Facilitation Portal (IFP)

Registration Process:

1. Visit the IFP portal → Click “New Investor Registration”

2. Fill the registration form → Click “Submit”

3. Verify email via the link sent to your registered email ID

4. On verification, registration is successful

Post-Registration Process:

1. Login to the IFP portal

2. Enter your registered email and password → Click “Login”

3. Fill in all business-related details and upload mandatory documents

4. Submit your application

Helpdesk: Contact via the official IFP portal

Documents Required

• Printed application with declaration and undertaking, signed by authorized person

• Acknowledgment of Udyog Aadhaar / Udyam Registration

• Term loan sanction letter

• Term loan account statement / first disbursement certificate

• Constitution of enterprise (Partnership deed, MOA, AOA, etc.)

• DPR (for projects ≤ ₹5 crores) or bank appraisal report (for projects > ₹5 crores)

• Shop & Establishment Certificate (for service enterprises in municipal areas)

• GST registration (if applicable)

• PAN Card of the enterprise

• ITR of last financial year (or self-declaration for new units)

• Birth certificate/school leaving certificate (for under-35 entrepreneurs)

• Caste certificate (SC/ST) from competent authority

• Certificate for differently-abled entrepreneurs

• GPCB CTE (if applicable)

• Land ownership proof (7/12 Utara, Namuna 6, Index copy, NA, etc.)

• Notarized rent deed or lease agreement

• Property tax receipt (for service activities)

• Board resolution for signing authority (if applicable)

• Declaration about other investments in Gujarat

• Annexure showing gross fixed capital investment (from balance sheet)

• CA certificate on GFCI (if expanding/diversifying)

Frequently Asked Questions

• Q: What is the scheme’s main goal?
  To provide interest subsidy support to SC/ST entrepreneurs in the manufacturing sector.

• Q: What is the duration of the interest subsidy?
  5–7 years based on taluka category.

• Q: Who qualifies as an SC/ST enterprise?
  One where SC/ST entrepreneurs own 51% or more.

• Q: Can an existing enterprise apply?
  Yes, provided the term loan was sanctioned before production started.

• Q: Can subsidy be claimed on solar energy systems?
  Yes, if used for captive consumption only.

• Q: What is the maximum annual subsidy?
  ₹25–₹35 lakh depending on the taluka category.

• Q: Can both state and central subsidies be availed?
  Only if total interest subsidy doesn’t exceed the total interest paid.

• Q: Is the scheme applicable to startups?
  Yes, startups led by SC/ST entrepreneurs are eligible.

Sources and References

• Guidelines

• Online Application Portal – IFP Gujarat