The Scheme for Assistance to Micro, Small and Medium Enterprises (MSME) is an umbrella initiative launched by the Industries and Mines Department, Gujarat. The scheme aims to empower the MSME sector in Gujarat, contributing significantly to employment, GDP, and exports. This initiative, which is operational from August 7, 2020, to August 6, 2025, offers assistance to MSMEs located outside GIDC (Gujarat Industrial Development Corporation) or other approved industrial parks.
The component “Assistance for Power Connection Charges” provides 35% reimbursement of the charges paid to the distribution licensee for power connections (LT and HT service lines). The reimbursement is capped at ₹5,00,000 per unit.
Scheme Key Highlights (Short Summary)
• Launched by: Industries and Mines Department, Gujarat
• Duration: August 7, 2020 – August 6, 2025
• Support Provided: 35% reimbursement on power connection charges for LT (Low Tension)/HT (High Tension) service lines
• Maximum Assistance: Up to ₹5,00,000
• Eligible MSMEs: Must be located outside GIDC or approved industrial parks
Benefits
• 35% Reimbursement of charges paid to distribution licensees for power connections
• Maximum reimbursement: ₹5,00,000
• Available for new and existing MSMEs
• Assistance period: Available for MSMEs operating outside GIDC areas or approved industrial parks
Eligibility
• The enterprise must be a Micro/Small/Medium enterprise
• The enterprise must be located outside GIDC or approved industrial parks
• The enterprise must have paid power connection charges to the distribution licensee
• The application for reimbursement must be submitted within one year of the payment of charges
• Enterprises must comply with the electricity regulations and consume electricity for production purposes
Exclusions
• MSMEs located within GIDC or approved industrial parks are not eligible
• The scheme is not applicable for non-manufacturing enterprises
Application Process
Online
• Step 1: Visit the Investor Facilitation Portal (IFP) and click on “New Investor Registration”
• Step 2: Complete the Registration Form and click “Submit”
• Step 3: Verify your email ID using the link sent to your registered email
• Step 4: Complete the registration process
Post-Registration Process
• Step 1: Log in to the IFP portal with your email ID and password
• Step 2: Complete your business details and upload the required documents
• Step 3: Submit the application for reimbursement of power connection charges
Documents Required
• Copy of Udyam/IEM/LOI Registration certificate
• Copy of the Constitution of the enterprise
• CA Certified Balance Sheet/Annual Audit Report (if applicable)
• CA certificate for capital investment
• Land documents (NA Permission/Index Copy/Sale Deed)
• PAN card of the enterprise, promoters, directors, and authorized signatory
• Estimates and receipt from the Power Distribution Company (DISCOM)
• Bills issued by Power Distribution company
• Certificate from Power Distribution License company (HT/LT)
• Sanctioned and connected load certificate from Power Distribution License Company
• Self-certified expenditure statement
• GST registration (if applicable)
• Bank details (cancelled cheque)
• Self-attested documents from the authorized person
• Power of attorney/Board resolution/Consent letter
Frequently Asked Questions (FAQs)
Q: What is the “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)”?
A: This scheme aims to provide financial support to MSMEs, particularly those outside GIDC or approved industrial parks, in Gujarat.
Q: What is the duration of the scheme?
A: The scheme is operational from August 7, 2020, to August 6, 2025.
Q: What is the objective of the component “Assistance for Power Connection Charges”?
A: The objective is to reimburse 35% of the power connection charges paid by MSMEs for LT/HT service lines, helping reduce the initial setup cost.
Q: Who is eligible to apply for this scheme?
A: Micro, Small, and Medium Enterprises located outside GIDC or approved industrial parks and that have paid power connection charges are eligible.
Q: What is the maximum financial assistance that an applicant can receive?
A: The maximum assistance is ₹5,00,000.
Q: What percentage of the power connection charges is reimbursed under this scheme?
A: The scheme reimburses 35% of the charges paid to the distribution licensee.
Q: Can an existing consumer apply for assistance under this scheme?
A: Yes, both new and existing MSMEs can apply if they meet the eligibility criteria.
Q: What is the time limit for submitting an application for reimbursement?
A: Applications must be submitted within one year from the date of payment for the power connection charges.
Q: Are MSMEs located inside GIDC or other approved industrial parks eligible for this scheme?
A: No, MSMEs located within GIDC areas or approved industrial parks are not eligible for assistance under this scheme.
Q: Can an MSME apply for assistance if the payment for power connection charges was made before the scheme started?
A: No, the payment must have been made after the scheme’s commencement date to be eligible for reimbursement.