Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Power Connection Charges is a Gujarat state scheme that helps SC/ST entrepreneurs get back 50% of their power connection costs, up to ₹5,00,000, for MSMEs located outside industrial estates. The scheme now continues under the new Viksit Gujarat Industrial Policy 2026, which keeps the power connection charges support for micro, small and medium enterprises.
Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Power Connection Charges - Introduction
Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Power Connection Charges serves as a key support for SC and ST entrepreneurs across Gujarat. Run by the Industries and Mines Department, this umbrella scheme helps the local MSME sector lower its setup costs and become more competitive.
Earlier this scheme ran under the Gujarat Industrial Policy 2020, which was effective from August 7, 2020 to August 6, 2025. That policy period has now ended. In its place, the state government released the Viksit Gujarat Industrial Policy 2026, effective from June 1, 2026. Under this new policy, the assistance for power connection charges continues as one of the MSME incentives, so eligible SC/ST entrepreneurs can still apply for support.
The scheme helps entrepreneurs who run their businesses outside Gujarat Industrial Development Corporation (GIDC) or other approved industrial park zones. If you have paid for a new power connection, an additional load, or a service line shift, this scheme offers the financial backing to ease your burden.
Key Information
| Scheme Name | Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Power Connection Charges |
|---|---|
| Level | State |
| Scheme For | Infra |
| Beneficiary State | Gujarat |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Business Entity, Industries |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Industries and Mines Department |
| Current Policy | Viksit Gujarat Industrial Policy 2026 |
Benefits
You can receive financial support covering 50% of the charges paid to distribution licensees for LT or HT service lines. The maximum assistance provided under this scheme is ₹5,00,000.
This reimbursement applies to charges paid for a new power connection, an additional load required for business growth, or shifting a service line. The support is meant only for units located outside GIDC zones or approved industrial parks.
Eligibility
To qualify for this support, you should meet the following criteria:
- Your enterprise must be a Micro, Small, or Medium enterprise owned and managed by SC/ST entrepreneurs, defined as having at least a 51% contribution from such entrepreneurs. For example, if an SC entrepreneur holds 52% of the company shares, the firm becomes eligible.
- Your business unit must be situated outside GIDC zones or approved industrial parks.
- You should apply for the reimbursement within one year of paying the connection charges to the Distribution Licensee.
- You must have paid these costs for a new connection, an additional load required for business growth, or for shifting a service line.
Application Process
STEP 1 - Visit the Investor Facilitation Portal and click on New Investor Registration.
STEP 2 - Fill in the registration form and submit it.
STEP 3 - Verify your email address using the link sent to your inbox. Once verified, your account is ready for use.
STEP 4 - Log in to your account on the Investor Facilitation Portal using your registered email and password.
STEP 5 - Navigate to the application section for this scheme and upload all requested business details and mandatory documents to finish your submission.
If you face any issues, you can reach out via the official helpdesk contact page.
Documents
You should prepare the following documents for your application:
- Copy of Udyam/IEM/LOI Registration certificate and constitution documents of the enterprise.
- CA certified balance sheet or annual audit report, and a CA certificate for capital investment.
- Land documents such as NA permission or sale deed, and the PAN card of the enterprise, partners, and authorized signatory.
- Estimates and payment receipts from the DISCOM, copy of power bills, and distribution license certificate.
- Category certificate, self-certified shareholding pattern, sanctioned and connected load certificate, and self-certified expenditure statement.
- GPCB approved NOC or other relevant department approvals, GST registration copy, cancelled cheque for bank transfers, and power of attorney or board resolution for the authorized person.
Definitions
Micro, Small and Medium Enterprise: An entity that meets current Government of India criteria under the MSME Development Act, 2006, and holds a valid Udyam Registration.
New Enterprise: An MSME that starts commercial production during the operative period of the scheme.
Existing Enterprise: An MSME that began commercial production before the scheme was announced.
Expansion: Occurs when an enterprise increases its investment in gross fixed capital by at least 50% for growth purposes.
Gross Fixed Capital Investment: The total investment made in building, machinery, and tools, excluding the cost of land.
Term Loan: Loans sanctioned by banks or financial institutions for acquiring fixed assets. Only the actual disbursed amount is considered for incentives.
References
Official Guidelines | Online Application Portal
FAQ's
What is Dr. Babasaheb Ambedkar Udyog Uday Yojana?
It is a special scheme that provides financial assistance to SC and ST entrepreneurs within the MSME sector in Gujarat, including support for power connection charges.
Is the scheme still running?
The earlier policy period ended on August 6, 2025. The state has since launched the Viksit Gujarat Industrial Policy 2026, which continues the assistance for power connection charges for eligible MSMEs.
Which industries are prioritized?
The policy focuses on sectors like auto components, chemicals, pharmaceuticals, engineering, textiles, and ceramics.
What is the purpose of the power connection assistance?
It helps businesses offset the costs associated with new power connections, load expansions, or shifting service lines.
Who is eligible?
MSMEs owned by SC/ST entrepreneurs (at least 51% contribution) located outside of GIDC or approved industrial parks can apply.
What is the maximum financial benefit?
You can receive 50% of the paid charges, capped at a maximum of ₹5,00,000.
Can enterprises in GIDC parks apply?
No, only enterprises located outside of GIDC or other approved industrial parks are eligible for this assistance.
When must I apply for reimbursement?
You should submit your application within one year from the date of payment to the distribution licensee.