The Scheme for Assistance to Micro, Small and Medium Enterprises (MSME) was launched by the Industries and Mines Department, Government of Gujarat under the Gujarat Industrial Policy 2020. Effective from August 7, 2020, to August 6, 2025, this scheme aims to strengthen the manufacturing sector of MSMEs by offering financial aid in the form of interest subsidies on term loans. It encourages investment, modernization, and competitiveness among small businesses.
Scheme Key Highlights (Short Summary)
• Validity: August 7, 2020 – August 6, 2025
• Sector: Manufacturing (MSMEs)
• Assistance Type: Interest Subsidy on Term Loans
• Tenure: Up to 7 years
• Extra benefits for youth, women, differently abled, and registered startups
Benefits
Interest Subsidy by Taluka Category:
• Category I: 7% subsidy, max ₹35 lakh/year, for 7 years
• Category II: 6% subsidy, max ₹30 lakh/year, for 6 years
• Category III & Municipal Corporation Areas: 5% subsidy, max ₹25 lakh/year, for 5 years
Note:
Additional incentives for:
• Women entrepreneurs
• Entrepreneurs under 35 years of age
• Registered Startups
• Differently abled persons
Eligibility
• Must be a Micro, Small, or Medium Manufacturing Enterprise
• Term loan must be sanctioned by a recognized Bank/Financial Institution (excluding NBFCs)
• Application must be submitted within 1 year of term loan disbursement or before commercial production starts
• Must remain operational for at least 7 years post-approval
• Must comply with pollution control and statutory norms
• Only one investment type (Expansion/Forward or Backward Integration/Diversification) can be availed under this subsidy
Application Process
Online
Registration Process:
• Step 1: Visit Investor Facilitation Portal (IFP)
• Step 2: Click on “New Investor Registration” and fill the form
• Step 3: Verify Email ID using the link sent to registered email
• Step 4: Login credentials will be activated post-verification
Application Process:
• Step 1: Login to the IFP Portal using registered credentials
• Step 2: Fill in enterprise and project details under the dashboard
• Step 3: Click “Apply Now” and select the interest subsidy scheme
• Step 4: Upload documents and submit application
Helpdesk: Available via IFP portal
Documents Required
• Printed application with signed declaration & undertaking
• Udyog Aadhaar / Udyam Registration acknowledgment
• Term loan sanction letter
• Term loan account statement or first disbursement certificate
• Constitution proof (partnership deed, MoA, etc.)
• Detailed Project Report or bank appraisal (based on project size)
• GST Registration (if applicable)
• PAN card of the enterprise
• ITR of previous year or self-declaration for new enterprises
• Age proof (for applicants under 35)
• Caste/differently abled certificate (if applicable)
• CTE from GPCB (if applicable)
• Land documents: 7/12 Utara, Namuna 6, property card, NA permission, lease deed, rent deed, etc.
• Property tax receipt (for service sector, if applicable)
• Board resolution (for LLPs, Pvt. Ltd., etc.)
• Declaration for other investments in Gujarat
• Balance sheet annexure showing gross fixed capital investment
• CA certificate for gross fixed capital investment
Frequently Asked Questions (FAQs)
Q: What is the “Scheme for Assistance to MSMEs”?
A: A state-supported initiative to empower and strengthen manufacturing MSMEs in Gujarat.
Q: What is the duration of the scheme?
A: From August 7, 2020, to August 6, 2025.
Q: What is the objective of the Interest Subsidy component?
A: To reduce financial burden by subsidizing interest on term loans for manufacturing MSMEs.
Q: Who is eligible to apply under this scheme?
A: Registered MSMEs engaged in manufacturing and availing term loans from recognized institutions.
Q: What is the maximum interest subsidy available?
A: ₹35 lakh per annum for up to 7 years (depending on Taluka category).
Q: Can a service sector enterprise apply?
A: No, this component is only for the manufacturing sector.
Q: Are all term loans eligible?
A: Only loans from recognized Banks/FIs, excluding NBFCs, are eligible.
Q: Can an enterprise get both state and central interest subsidies?
A: No, dual subsidy is not allowed.
Q: Are existing businesses eligible?
A: Yes, if they apply within the stipulated time frame post-loan disbursement.
Q: Are there special benefits for specific entrepreneurs?
A: Yes, for youth, women, startups, and differently abled persons.
Q: Will subsidy continue if there’s a loan default?
A: No, subsidy is discontinued if the enterprise defaults on loan repayment.
Q: What if an enterprise shuts down before 7 years?
A: The subsidy will be recovered if the enterprise ceases operations prematurely.
Q: Is pollution compliance mandatory?
A: Yes, enterprises must meet environmental norms.
Q: Can subsidy be claimed for solar plant installation?
A: No, only manufacturing-related fixed capital investment is covered.
Sources and References
• Guidelines
• Investor Facilitation Portal (IFP)
• Category List