Aatmanirbhar Gujarat Scheme for Assistance to MSMEs: Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Manufacturing Sector)

Aatmanirbhar Gujarat Scheme for Assistance to MSMEs gives interest subsidy on term loans to manufacturing businesses in Gujarat. Manufacturing units get financial relief on their loans, with the subsidy amount depending on where the factory is located. The scheme is part of Gujarat's push to build a self-reliant state and is open for new as well as expanding units.

The Industries and Mines Department runs this scheme, which stays in force from October 5, 2022, until October 4, 2027. It supports the MSME sector's big role in jobs, output, and exports by cutting the interest burden on term loans.

Aatmanirbhar Gujarat Scheme for MSMEs Manufacturing Interest Subsidy

This scheme works only for the manufacturing sector. Every applicant is checked against the rules set in the government resolution, and the subsidy number depends on which category the taluka falls under. Priority areas earn a higher subsidy for a longer period.

Highlights

Benefits

Eligible MSMEs get interest subsidy on their term loan, and the amount depends on where the unit is located. Units in the least developed talukas get the highest support.

An extra 1% interest subsidy is available for women entrepreneurs, differently-abled entrepreneurs, young entrepreneurs under 35 years, and registered startups in the manufacturing sector. Whatever the subsidy, the unit has to bear at least 2% interest on the term loan on its own.

Eligibility

Only firms that meet the conditions below can apply under this scheme. Make sure the unit qualifies on every point before starting an application.

• The firm should be classified as a Micro, Small, or Medium enterprise.
• A valid acknowledgment or registration from the Ministry of MSME or the DPIIT is required.
• The enterprise can be new, or an existing unit doing expansion or diversification.
• Commercial production or service operation should start within the scheme's operative period.
• Application must be filed online within one year of the first loan payment, the start of business, or the date of the government resolution, whichever is later.
• The unit should keep a clean record of regular loan and interest payments to the bank.

Exclusions

Some situations are not covered by this scheme. Check these points carefully so there is no confusion later.

• Enterprises already getting similar support for the same Fixed Capital Investment under other state government schemes.
• Businesses where the term loan was sanctioned more than one year after production or service delivery began.
• Any period in which the loan is in default, because no subsidy is paid for that time.
• Claims for penal interest or other administrative charges charged by the bank.

Documents

Keep digital copies of the following documents ready while applying online. Missing papers can delay the application.

• Signed application form with declaration.
• Udyam or Udyog Aadhaar registration certificate.
• Term loan sanction letter from the bank.
• Bank statement or certificate showing the first loan payment.
• Registered partnership deed, if applicable.
• Project report (DPR) for projects up to ₹5 crore.
• GST registration and PAN card.
• Latest ITR copy.
• Age proof for young entrepreneurs, or caste or disability certificates if claiming the extra subsidy.
• Land documents like 7/12 Utara or NA permission.
• Board resolution on the signing authority.
• CA certificate for Gross Fixed Capital Investment.

Application Process

Applications are filed online through the Investor Facilitation Portal (IFP) of Gujarat. Follow the steps below to register and apply.

STEP 1 - Go to the official Investor Facilitation Portal at Investor Facilitation Portal (IFP) and click on 'New Investor Registration'.

STEP 2 - Fill in the registration form with the correct details and submit it. Verify the email address through the link sent, so the account gets activated.

STEP 3 - Log in with the registered credentials and open the dashboard. Enter all the required business details and upload the documents one by one.

STEP 4 - Check every field before final submission to avoid mistakes. For any doubt, take the help of the Contact Helpdesk available on the portal.

Definitions

New Enterprise

A new enterprise is an MSME that starts commercial operations during the scheme's active period. The fixed capital investment of the unit should be separately identifiable from any other business run by the owner.

Existing Enterprise

An existing enterprise is one that is already operational before starting expansion. Setting up a new unit while already in operation comes under this category.

Gross Fixed Capital Investment (GFCI)

This covers all investment in buildings, plant, machinery, tools, and utilities needed for the business, excluding the cost of land.

Eligible Fixed Capital Investment (EFCI)

This refers to the investment amounts made on or after the date the government resolution was issued.

References

• Government Guidelines 1
• Government Guidelines 2
• Official Aatmanirbhar Gujarat Scheme page
• Official Online Application Portal
• Detailed Document Checklist

FAQ's

What is the purpose of this scheme?

This scheme helps MSMEs in Gujarat by giving an interest subsidy on term loans to push industrial growth and self-reliance.

What is the operative period of the scheme?

The scheme runs from October 5, 2022, until October 4, 2027.

Is there an extra interest subsidy for some groups?

Yes. Women, differently-abled entrepreneurs, young entrepreneurs under 35, and registered startups in manufacturing can get an extra 1% interest subsidy.

How is the subsidy worked out?

The incentive depends on the lower amount between the actual Gross Fixed Capital Investment and the cost appraised by the bank.

What if I am already getting benefits under another scheme?

Incentives under this scheme cannot usually be claimed if the same capital investment has already been supported elsewhere, unless it is specially allowed.

Can I install a solar power plant under this scheme?

Yes. Existing enterprises installing new solar or renewable power plants for captive use are eligible for this subsidy based on their location.