AI SummaryDr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance in Rent to MSEs supports SC/ST entrepreneurs by providing financial relief on rental expenses for their Micro and Small Enterprises. This scheme helps manufacturing units in Gujarat reduce operational costs, aiming to make them more competitive in the global market.
The rent assistance component continues under the Viksit Gujarat Industrial Policy 2026, which came into effect from June 1, 2026, and keeps assistance in rent to MSEs among its MSME incentives. Earlier, the scheme ran under the Gujarat Industrial Policy 2020 from August 7, 2020, to August 6, 2025. SC/ST entrepreneurs running manufacturing units from rented or leased sheds can still get a large part of their rent reimbursed.
Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance in Rent to MSEs - Introduction
Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance in Rent to MSEs serves as a dedicated scheme under the Industries and Mines Department of Gujarat. It helps the MSME sector by supporting employment and economic growth. The rent assistance component provides vital financial support to Micro and Small Enterprises that operate from rented or leased production facilities. If a manufacturing business runs in a rented space, this scheme helps cover overheads by reimbursing a significant part of the rent.
The scheme is mainly aimed at SC/ST entrepreneurs. Under the Gujarat Industrial Policy 2020, the operative period was from August 7, 2020, to August 6, 2025. With the launch of the Viksit Gujarat Industrial Policy 2026 from June 1, 2026, assistance in rent to MSEs stays available as a continuing incentive for eligible manufacturing units.
Key Information
| Scheme Name | Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance in Rent to MSEs |
| Level | State |
| Beneficiary State | Gujarat |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Business Entity, Industries |
| Benefit Type | Cash Reimbursement |
| Nodal Department | Industries and Mines Department |
| Scheme Launch Date | August 7, 2020 |
Benefits
This scheme offers direct financial relief to eligible manufacturing enterprises. Eligible SC/ST entrepreneurs can receive reimbursement for 70% of the rent they pay for their working shed, up to a maximum limit of ₹1,00,000 per annum for a period of 5 years.
The rent must be paid by cheque or e-payment to qualify for reimbursement. The rent or lease deed should be valid for a minimum of 11 months and can be extended up to 5 years. An enterprise can submit a maximum of 3 applications, with total assistance capped at ₹1,00,000 per annum during the operative period of the scheme.
Eligibility
To benefit from this support, an applicant should meet the following requirements:
- The firm should be a Micro or Small Enterprise (MSE) managed by an SC/ST entrepreneur, where the contribution of SC/ST entrepreneur(s) is 51% or more.
- The enterprise should be actively engaged in manufacturing activities and must be in commercial production.
- The unit must operate from a legally rented or leased shed, and the owner of the rented property must hold legal ownership and possession.
- The manufacturing unit must consume electricity or power for its production processes.
Note: Enterprises primarily engaged in service or trading activities do not qualify for this rental assistance.
Application Process
An enterprise has to apply online on the Investor Facilitation Portal (IFP) and submit a hard copy at the concerned District Industries Centre (DIC) office within six months from the date of the rent or lease agreement. The following steps explain how to apply:
STEP 1 - Visit the official Investor Facilitation Portal (IFP) and select New Investor Registration to fill out the form.
STEP 2 - Complete the registration form and click Submit.
STEP 3 - Check the inbox and verify the email address using the confirmation link sent.
STEP 4 - Log in using the registered credentials, fill in business details, upload the mandatory documents, and submit the application.
STEP 5 - Submit the hard copy of the application at the concerned DIC office within six months from the date of the rent or lease agreement.
If any issue comes up, the Helpdesk contact page can be used for further assistance.
Documents
Applicants should keep the following documents ready for the application:
- Copy of Udyam, IEM, or LOI registration certificate.
- Proof of enterprise constitution and supporting documents verifying SC/ST enterprise status.
- CA certificate regarding fixed capital investment and a copy of the self-certified shareholding pattern.
- Valid rent or lease agreement, recent rent receipts, and the lessor's PAN card copy.
- Property documents including index, sale deed, and approved plans, along with a recent electricity bill.
- Undertaking regarding other government assistance received, PAN cards of the enterprise and promoters, and GST registration certificate.
- CA certified balance sheet of the last financial year, bank statement showing rent payments, and a cancelled cheque for RTGS details.
- Self-attested identity proof of the authorized signatory, board resolution or power of attorney, and a declaration confirming the rent agreement is not between blood relations or family members.
References
View Official Scheme Guidelines
View Official Government Resolution
Access Online Application Portal
FAQ's
What is Dr. Babasaheb Ambedkar Udyog Uday Yojana?
It is a specialized government scheme introduced under the Gujarat Industrial Policy to provide financial assistance to SC and ST entrepreneurs within the MSME sector.
Who is eligible for the Assistance in Rent component?
Any Micro or Small Enterprise (MSE) engaged in manufacturing that operates from a legally rented or leased shed is eligible to apply.
What is the amount of financial help provided?
Eligible SC/ST enterprises receive reimbursement of 70% of the rent paid, subject to a maximum of ₹1,00,000 per year.
How long can one avail of this rent assistance?
The assistance is available for a maximum period of 5 years.
Are service and trading businesses eligible?
No, only manufacturing enterprises are eligible for this rental support.
How should the rent be paid to qualify?
The rent must be paid by cheque or e-payment, and the application should be submitted within six months from the date of the rent or lease agreement.