Dr. Babasaheb Ambedkar Udyog Uday Yojana: Up to 70% Financial Assistance for SC/ST MSMEsScheme StatusScheme Status

The Dr. Babasaheb Ambedkar Udyog Uday Yojana is a welfare initiative under the Gujarat Industrial Policy 2020, launched by the Industries and Mines Department, Gujarat. Valid from August 7, 2020, to August 6, 2025, the scheme is designed to support SC/ST entrepreneurs. One of its key components, Assistance for Technology Acquisition, facilitates MSMEs in upgrading or enhancing their products or processes through technology transfer from recognized institutions, enabling global competitiveness.

Scheme Key Highlights (Short Summary)

• Validity: August 7, 2020 – August 6, 2025
• Target: SC/ST-led MSMEs (51% or more shareholding)
• Purpose: To support product/process tech acquisition
• Funding: 70% of cost covered (up to ₹50 lakh)
• Includes: Royalty payments for first 2 years

Benefits

Financial Assistance: Up to 70% of the cost of technology acquisition
Maximum Limit: ₹50,00,000/-
Coverage: Royalty payments included for the first 2 years

Eligibility

• Must be a Micro, Small, or Medium enterprise
• Must be led by SC/ST entrepreneur(s) with minimum 51% share
• New or existing units in manufacturing or process enhancement
• Technology must be acquired from a recognized institution
• MoU/Contract must be signed within 1 year
• Prior approval from the MSME Commissionerate is mandatory

Exclusions

• Purchase of machinery, equipment, or plant is not eligible
• Service-based businesses are not eligible
• Enterprises failing to sign MoU within 1 year lose eligibility

Application Process

Online

Registration Process:
• Step 1: Visit Investor Facilitation Portal (IFP)
• Step 2: Click “New Investor Registration” and fill the form
• Step 3: Verify registered Email ID through confirmation link
• Step 4: Once verified, registration is complete

Post-Registration Process:
• Step 1: Log in to IFP Portal using credentials
• Step 2: Complete business profile and required sections
• Step 3: Apply under the relevant scheme
• Step 4: Upload all necessary documents and submit application

Helpdesk: Available on IFP Portal

Documents Required

• Udyam/IEM/LOI Registration certificate
• Enterprise constitution documents (MoA, partnership deed, etc.)
• Board Resolution/Power of Attorney for signatory
• Signed MoU/Agreement/Contract for technology acquisition
• Patent certificate (if applicable)
• CA certificate on fixed capital investment
• Bills of expenditure and corresponding bank statement
• Shareholding pattern (self-certified)
• Description of technology, benefits, and outcomes
• Audited balance sheets and annual reports (latest)
• Technical presentation or project report
• Term loan sanction details (if applicable)
• PAN cards of enterprise and key stakeholders
• GST registration (if applicable)
• Report from the technology provider
• GPCB consent (if applicable)
• Cost of project and finance plan
• SC/ST entrepreneur support documents

Frequently Asked Questions (FAQs)

Q: What is the “Dr. Babasaheb Ambedkar Udyog Uday Yojana”?
A: A government scheme supporting SC/ST entrepreneurs through financial, training, and technology-related assistance.

Q: What sectors are prioritized under the Industrial Policy 2020?
A: MSME manufacturing, innovation, and technology-focused enterprises.

Q: How does the scheme promote export competitiveness?
A: By enabling MSMEs to adopt advanced technology and improve product quality and efficiency.

Q: What is the duration of the scheme?
A: From August 7, 2020, to August 6, 2025.

Q: What is the primary objective of the “Assistance for Technology Acquisition” scheme-component?
A: To help SC/ST enterprises acquire innovative technology that enhances products or processes.

Q: Who is eligible to apply for the scheme?
A: MSMEs owned 51% or more by SC/ST entrepreneurs.

Q: What percentage of the technology acquisition cost is covered?
A: Up to 70%, subject to a maximum of ₹50 lakh.

Q: Does the scheme cover royalty payments?
A: Yes, for the first 2 years after acquisition.

Q: Can the subsidy be used to purchase machinery?
A: No, plant, machinery, and equipment costs are not eligible.

Q: What is the time limit for signing a technology agreement?
A: It must be signed within 1 year of project initiation.

Q: Is prior approval from MSME Commissionerate required?
A: Yes, mandatory before proceeding.

Q: Are service-based businesses eligible?
A: No, the scheme is limited to manufacturing or process-based industries.

Q: Can technology be acquired from a foreign company?
A: Yes, if it is a recognized institution and with valid documentation.

Q: What happens if an MoU isn’t signed within a year?
A: The enterprise will lose eligibility for financial assistance.

Sources And References

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