Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance of Capital Investment SubsidyScheme StatusScheme Status

The Dr. Babasaheb Ambedkar Udyog Uday Yojana is a flagship scheme launched by the Industries and Mines Department, Government of Gujarat, to empower SC/ST entrepreneurs through capital investment subsidies. This is part of the broader Gujarat Industrial Policy and is valid from August 7, 2020, to August 6, 2025. The scheme supports micro-enterprises in the manufacturing sector and helps them become globally competitive.

Benefits

Category of Taluka Incentive
Category 1 30% of term loan amount, up to ₹40,00,000/-
+ ₹10,00,000/- for FCI above ₹10 Cr
Category 2 25% of term loan amount, up to ₹35,00,000/-
+ ₹7,50,000/- for FCI above ₹10 Cr
Category 3 & Municipal Corporation Areas 15% of term loan amount, up to ₹15,00,000/-
+ ₹5,00,000/- for FCI above ₹10 Cr

Eligibility

• The unit must be a Micro, Small, or Medium Enterprise (MSME).
• The entrepreneur must be from the Scheduled Caste (SC) or Scheduled Tribe (ST).
• The enterprise must be in the manufacturing sector.
• The term loan must be sanctioned before commercial production begins.
• The application must be submitted within 1 year of:

  • Date of first loan disbursement, or

  • Date of commercial production commencement, or

  • GR issue date, whichever is later.
    • The enterprise must have already started commercial production.
    • If any Central subsidy is availed, the total subsidy (State + Central) must not exceed the loan amount.

Note: SC/ST enterprise means the entrepreneur(s) belonging to SC/ST should hold at least 51% ownership.

Application Process

Online Mode

  1. Visit the Investor Facilitation Portal (IFP)

  2. Click on New Investor Registration and fill out the form.

  3. Verify your email to complete registration.

  4. Login to the portal, fill in required business details, and submit the application.

Documents Required

• Signed copy of the application and declaration form
• Udyog Aadhaar / Udyam Registration
• Term loan sanction letter
• Bank certificate of first loan disbursement
• Constitution of enterprise (e.g., partnership deed)
• DPR or bank appraisal report (for projects over ₹5 Cr)
• Shop & Establishment Certificate (for service sector only)
• GST Registration (if applicable)
• PAN Card of enterprise
• ITR or self-declaration (for new units)
• Birth certificate / School leaving certificate (for age proof if under 35)
• Valid caste certificate (SC/ST)
• Disability certificate (if applicable)
• Land/property documents (Index 2, 7/12 Utara, NA, etc.)
• Rent/Lease deed with ownership proof
• Property tax receipt (for service sector units)
• Board Resolution (if applicable)
• CA certificate for Fixed Capital Investment (FCI)
• Undertaking for investment details in Gujarat
• Balance sheet with annexure showing FCI

Frequently Asked Questions (FAQs)

Q: What is the objective of this scheme?
To provide capital investment subsidies to SC/ST-owned micro-manufacturing enterprises in Gujarat.

Q: What is the maximum subsidy amount available?
Up to ₹40,00,000/- (plus an additional ₹10,00,000/- for FCI above ₹10 Cr) based on the taluka category.

Q: Who qualifies as an SC/ST enterprise?
Enterprises where 51% or more ownership is held by SC/ST individuals.

Q: Can the subsidy be claimed before production starts?
No, the enterprise must have commenced commercial production.

Q: Is there a deadline to apply?
Yes, within 1 year of loan disbursement, production start, or GR issuance—whichever is later.

Q: Can both Central and State subsidies be availed?
Yes, but the combined amount should not exceed the total term loan.

Q: What if commercial production does not start?
The enterprise becomes ineligible for subsidy.

Q: How is Fixed Capital Investment (FCI) determined?
Through CA certification and balance sheet annexures showing investment in plant and machinery.

Sources and References

• Guidelines
• Online Application Portal

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