Aatmanirbhar Gujarat Scheme for Assistance to MSMEs: Rehabilitation of Sick Enterprise is a state-led financial scheme that helps sick micro, small, and medium enterprises (MSMEs) in Gujarat cover the cost of diagnostic studies and rehabilitation planning so that business can be restored. This component gives eligible industrial units a 50% reimbursement of the money spent on drafting a formal rehabilitation plan, capped at ₹1,00,000, so that business owners can get past financial distress and keep growing.
Aatmanirbhar Gujarat Scheme for Assistance to MSMEs: Rehabilitation of Sick Enterprise - Introduction
Aatmanirbhar Gujarat Scheme for Assistance to MSMEs: Rehabilitation of Sick Enterprise is a key support for struggling industrial units across the state. The scheme is managed by the Industries and Mines Department and is open from October 5, 2022, to October 4, 2027. During this period, an enterprise that is facing sickness as per the Reserve Bank of India (RBI) definition can get partial reimbursement for its diagnostic reports and revival plans.
If a manufacturing unit is classified as sick as per RBI guidelines, it can use this opportunity to recover part of the cost of professional turnaround planning. By taking part in this program, a unit supports its own stability while also matching the larger goal of Aatmanirbhar Gujarat and Aatmanirbhar Bharat.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Aatmanirbhar Gujarat Scheme for Assistance to MSMEs: Rehabilitation of Sick Enterprise |
| State | Gujarat |
| Eligible People | Business entities and manufacturing industries |
| Main Department | Industries and Mines Department |
| Operative Dates | October 5, 2022 to October 4, 2027 |
| Financial Benefit | 50% reimbursement up to ₹1,00,000 |
| Primary Focus | Rehabilitation of sick units |
Benefits
This scheme is useful for a business that needs professional help to recover. The government gives a 50% reimbursement of the cost incurred while preparing the Draft Rehabilitation Scheme. The maximum financial support under this component is ₹1,00,000 for the whole operative period of the scheme.
The reimbursement covers the fee paid to professional consultants or expert agencies that prepare the revival plan. This keeps the full advisory cost from falling on a struggling business.
Eligibility
To qualify for this support, a business should meet these conditions:
- The unit should be a Micro, Small, or Medium Enterprise (MSME) registered with the Ministry of MSME or the Department for Promotion of Industry and Internal Trade (DPIIT).
- The enterprise should have started commercial production between October 5, 2022, and October 4, 2027.
- The unit must be formally classified as a sick industrial enterprise as per current RBI guidelines, with a certificate from the MSME Commissionerate.
- The diagnostic study report should be prepared by a qualified expert or a recognized expert agency.
- The online application should be filed within the operative timeframe of the scheme.
Application Process
The application is done online through the dedicated portal for investors. Here are the steps to follow.
STEP 1 - Visit the Investor Facilitation Portal (IFP) and select the New Investor Registration option.
STEP 2 - Fill in the registration form with the business details and submit it.
STEP 3 - Verify the email address by clicking the link sent to the registered email.
STEP 4 - Log in to the Investor Facilitation Portal using the credentials.
STEP 5 - Go to the scheme section, enter all the required business data, upload the documents, and submit the application for review.
If there is any technical issue, use the Official Helpdesk for support.
Documents
Keep the following documents ready to make the application process smooth. For general registration, a unit needs the application form, the constitution documents such as partnership deed, Articles of Association, or Memorandum of Association, a copy of EM Part II or Udhyog Aadhar registration, audited balance sheets and profit and loss statements for the last three years, and a certificate from a Chartered Accountant confirming that the unit meets the RBI sickness criteria.
For the diagnostic study report, a unit needs a recommendation letter from a government department, bank, or financial institution, a copy of the engagement letter from the expert or agency, receipts confirming the payments made to the expert or agency, and a complete copy of the diagnostic study report as submitted by the agency.
Definitions
New Enterprise
A new enterprise is a firm that has started its commercial production during the scheme period. For example, if Ramesh starts a new plastic manufacturing unit in 2023 and gets DPIIT registration, his unit is treated as a new enterprise.
Existing Enterprise
This refers to an enterprise already involved in production or services before starting expansion. For example, if Sunita's textile mill was already running and she expanded it during the scheme period, it counts as an existing enterprise.
Gross Fixed Capital Investment
This is the investment made in assets such as plant, machinery, buildings, and tools, excluding the cost of land.
Eligible Fixed Capital Investment
This covers the specific investments made from the date of the official government resolution until the end of the investment period defined under the policy.
References
These official documents give more details about the scheme:
FAQ's
What is the purpose of this scheme?
This scheme supports MSMEs in Gujarat by reimbursing half the cost of diagnostic studies required to rehabilitate sick industrial units.
Is the support given directly as a loan?
No, this scheme is not a loan. It gives financial reimbursement for specific professional costs incurred during the rehabilitation planning phase.
What is the limit for cost reimbursement?
A unit can get a reimbursement of 50% of the cost, but this is capped at a total of ₹1,00,000 per enterprise.
Who qualifies as a sick enterprise?
An enterprise is considered sick if it meets the diagnostic criteria set by the Reserve Bank of India.
Does registration automatically give funds?
No, registration with the MSME Commissionerate only confirms the status of a unit as sick and does not guarantee automatic financial settlements with banks.