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This Gujarat government scheme helps MSMEs save energy and water by offering financial support for audits and Read More... essential equipment, boosting sustainability. Read less

Details

Looking for ways to make your MSME more sustainable and cut down on utility costs? The Industries and Mines Department of Gujarat has launched a beneficial scheme designed to do just that!

This initiative is part of a larger umbrella scheme aimed at strengthening Gujarat's Micro, Small, and Medium Enterprises (MSMEs). These businesses are the backbone of the state's economy, contributing significantly to jobs, GDP, and exports. Running from August 7, 2020, to August 6, 2025, this scheme is all about helping entrepreneurs and making MSMEs more competitive on a global scale.

What Is This Scheme All About?

The specific component we're talking about, "Assistance for Saving in Consumption of Energy and Water," focuses on helping both new and existing businesses reduce their usage of energy and water. It encourages industries to adopt smart, efficient practices. How? By reimbursing part of the cost for energy and water audits and also providing subsidies on the new, recommended equipment that helps save these precious resources.

Who Can Benefit From This Scheme?

This scheme is designed for entrepreneurs running micro, small, or medium enterprises in Gujarat. Whether you're just starting out or have an established business, if you're committed to reducing your environmental footprint by saving energy and water, this scheme is for you.

Why This Scheme Is Important

In today's world, sustainable practices are crucial. This scheme not only helps businesses become more environmentally responsible but also makes them more cost-efficient. By reducing energy and water consumption, MSMEs can lower their operational expenses, leading to better profitability and a stronger market position. It's a win-win for businesses and the planet.

Objective

This Gujarat government scheme helps MSMEs save energy and water by offering financial support for audits and essential equipment, boosting sustainability.

Benefits

Interest Subsidy:

General Category:7.5% for up to 5 years after availing of a bank loan.
SC/ST/Female Beneficiaries:8.5% for up to 5 years.
Gir/Kankrej Breed Units: Up to 12% maximum subsidy.

Shed Construction Assistance:

General Category: 50% of actual expenditure, up to ₹1,50,000/-.
Gir/Kankrej Breed: 75% of actual expenditure, up to ₹2,25,000/-.

Animal Insurance Premium (for 3 years):

General Category: 75% subsidy, up to ₹43,200/-.
Gir/Kankrej Breed: 90% subsidy, up to ₹51,840/-.

Equipment Subsidy:

Electric Chaff Cutter: 75% subsidy, up to ₹18,000/- (General) ; 90% subsidy, up to ₹21,600/- (Gir/Kankrej).
Fogger System: 75% subsidy, up to ₹9,000/- (General) | 90% subsidy, up to ₹10,800/- (Gir/Kankrej).
Milking Machine: 75% subsidy, up to ₹33,750/- (General) | 90% subsidy, up to ₹40,500/- (Gir/Kankrej).

Note:

Interest subsidy will be available on the amount determined above for the unit cost fixed by NABARD or through the bank for the establishment of units for dairy cattle of up to 12 animals, whichever is less.

Sources and references

Guidelines

Eligibility Criteria

You must be running an existing enterprise or setting up a new one.
Your enterprise needs to get an energy or water audit done by an institution or consultant that is officially recognized.
After the audit, you must show that you've successfully reduced your energy or water consumption by at least 10%.
You should install the equipment suggested by the auditing authority.
If your energy or water use has increased because you've grown your production, your case will be looked at separately.

How To Apply

First, ensure your enterprise conducts an energy/water audit from a recognized institution or consultant.
Gather all the required documents as listed below.
Submit your application along with all supporting documents. The scheme is administered by the Industries and Mines Department, Gujarat.
For specific application submission details and forms, please refer to the official notifications and links provided by the Gujarat government.

Documents Required

Copy of Udyam / IEM / Letter of Intent (LOI) Registration certificate.
Copy of the Enterprise's Constitution (e.g., partnership deed, memorandum of association).
Self-certified copy of Share Holding Pattern.
CA Certificate confirming the fixed capital investment.
Certified Copy of the latest Balance Sheet and audit report of the Enterprise.
Proof of payment for fees to the recognized institution/Consultant.
A list of recommended equipment for energy/water conservation, if applicable.
Invoices and bills for the recommended equipment purchased, if applicable.
The official recommendation/audit report from the recognized institution for energy/water conservation.
Details showing a minimum 10% saving in energy/water compared to the average monthly consumption of the 12 months before the audit.
A Project report including benefit analysis, especially if claiming equipment reimbursement.
CA certified Expenditure statement.
Copy of Self Certified Share Holding Pattern (if applicable).
Highlighted Bank account statement showing expenditure.
An undertaking stating whether you have received any assistance from the Gujarat Government (GOG) or the Central Government (GOI).
Copy of third-party documentary evidence proving the results achieved, like electricity bills, water bills.
Copy of GPCB (Gujarat Pollution Control Board) approved NOC/Consent and other departmental approvals, if needed.
Copy of PAN Card for the Enterprise, its Promoters/Directors/Partners, and the authorized signatory.
Copy of GST registration, if applicable.
Board resolution, Power of Attorney (POA), or Consent letter authorizing the application.
Copy of a cancelled Cheque.
Any other documents that may be required.

FAQ’s

What is the main goal of the "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?

The primary goal is to elevate Gujarat's status as a leading global business hub by promoting sustainable manufacturing, ensuring inclusive development, and fostering balanced regional growth.

When did this scheme start and when does it end?

The scheme is active from August 7, 2020, and is scheduled to continue until August 6, 2025.

What kind of support does the "Assistance for Saving in Consumption of Energy and Water" component offer?

This part of the scheme provides financial aid to both new and existing businesses that implement measures to reduce their energy and water usage.

Who is eligible to apply for this particular scheme?

Any enterprise, whether new or existing, that completes an energy/water audit via a recognized institution and successfully reduces its consumption by at least 10% can apply.

What is the maximum financial benefit available under this scheme?

The scheme offers reimbursement for 75% of the audit expenses, with a cap of ₹50,000. Additionally, it provides a 25% subsidy on recommended equipment costs, up to a maximum of ₹20,00,000. Both are one-time benefits.

Can a brand-new enterprise apply for this scheme?

Absolutely. A newly established enterprise can apply provided it takes steps to reduce energy or water consumption and meets all the other eligibility requirements.

What happens if an enterprise doesn't achieve the mandatory 10% reduction in consumption?

If an enterprise fails to achieve the minimum 10% reduction in energy or water consumption after the audit, it will not qualify for the subsidy on equipment costs.

Is it possible to apply if my enterprise's energy or water consumption has gone up due to increased production?

Yes, if your consumption has risen due to higher production levels, your application will be reviewed separately by the committee formed by the State Level Empowered Committee (SLEC).

Which institutions or consultants are allowed to conduct the energy/water audit?

The audit must be carried out by an institution or consultant that has been officially recognized for this purpose by the relevant authorities.

How will the financial aid be given to the eligible enterprises?

The approved financial assistance, whether it's the reimbursement or the subsidy, will be directly transferred to the enterprise's registered bank account.

If an enterprise conducts an audit before it's officially registered, will it be eligible?

No, to be eligible for assistance under this scheme, the enterprise must be legally registered before it carries out the energy/water audit.

Is it a requirement for an enterprise to have GST registration to apply?

Yes, GST registration is a mandatory requirement for enterprises to be considered for financial assistance under this scheme.