The Dr. Babasaheb Ambedkar Udyog Uday Yojana is a scheme launched by the Industries and Mines Department, Gujarat, aimed at empowering SC/ST entrepreneurs and supporting MSMEs, promoting global competitiveness in the service sector. The Interest Subsidy (Service Sector) component of the scheme provides financial assistance to micro-enterprises in the service sector by offering an interest subsidy on term loans.
The scheme is effective from August 7th, 2020 to August 6th, 2025 and offers interest subsidy based on the category of taluka and other conditions.
Benefits
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Category I: 8% on the term loan with a maximum amount of ₹35,00,000 per annum for 7 years.
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Category II: 7% on the term loan with a maximum amount of ₹30,00,000 per annum for 6 years.
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Category III & Municipal Corporation Areas: 6% on the term loan with a maximum amount of ₹25,00,000 per annum for 5 years.
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Additional Subsidy: 1% extra for startups with Udyam/MSME registration.
Eligibility
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The enterprise must be a Micro/Small/Medium service sector business run by SC/ST entrepreneurs.
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The business must have received a term loan for new machinery, equipment, or furniture/fixtures.
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Loan must be sanctioned within one year before starting commercial production.
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Udyam/MSME registration is required.
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The business should not have defaulted on any previous loans.
Exclusions
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Enterprises whose loan is sanctioned after one year from the commencement of commercial production.
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Enterprises that have defaulted on loan repayments or are seeking penal interest or additional charges reimbursement.
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Enterprises availing subsidies under other Central Government schemes where the total subsidy exceeds the interest paid.
Application Process
Online
Step 1: Visit the Investor Facilitation Portal (IFP) and click on “New Investor Registration.”
Step 2: Complete the Registration Form and submit it.
Step 3: Verify your email and complete the registration process.
Step 4: Login to the portal and fill in the application form, uploading required documents.
Documents Required
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Udyam/MSME Registration Certificate.
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Term loan sanction letter.
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Bank statement or certificate of first disbursement.
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Constitution of the enterprise (for partnerships, deed or registration).
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Project Report with Five-Year Projections.
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Caste Certificate for SC/ST.
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Pollution Control Certificate (if applicable).
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Rent/lease agreement for business premises.
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Board resolution for signing authority (for companies).
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CA certified documents for investment and capital expenditure.
Frequently Asked Questions (FAQs)
Q: What is the maximum subsidy available under the scheme?
A: The maximum subsidy available is ₹35,00,000 for Category I enterprises, depending on the taluka category.
Q: What sectors are covered under the scheme?
A: The scheme is applicable to micro-enterprises in the service sector, particularly those run by SC/ST entrepreneurs.
Q: Is Udyam/MSME registration required for availing the subsidy?
A: Yes, Udyam/MSME registration is mandatory to apply for the interest subsidy.
Q: Can an enterprise apply for the subsidy if it has already started production?
A: No, the loan should be sanctioned before the commencement of commercial production.
Q: Can startups avail of any additional benefits?
A: Yes, startups with Udyam/MSME registration receive an additional 1% interest subsidy.
Q: When will the subsidy be disbursed?
A: The subsidy is provided over the loan term and will be reimbursed after the loan’s interest payment.
Q: Are businesses that have defaulted on previous loans eligible?
A: No, the business must not have defaulted on any loans to qualify for this subsidy.