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This scheme aims to boost Gujarat's MSME sector, which is vital for jobs, the economy, and exports, Read More... by providing interest subsidies on term loans for manufacturing businesses. Read less

Details

The Gujarat government has launched the 'Aatmanirbhar Gujarat Scheme for assistance to MSMEs' to give a significant push to the state's Micro, Small, and Medium Enterprises. These businesses are crucial for creating jobs, contributing to the Gross Domestic Product (GDP), and driving exports. This initiative, running from October 5, 2022, to October 4, 2027, is designed to foster growth and investment, aligning with the vision of a self-reliant Gujarat and India.

A key part of this umbrella scheme is the 'Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Manufacturing Sector)'. This component specifically supports micro-enterprises in the manufacturing sector by offering them an interest subsidy on their term loans.

What Is This Scheme?

The Aatmanirbhar Gujarat Scheme, particularly its interest subsidy component, is a financial support program. It helps micro, small, and medium enterprises in Gujarat, focusing on the manufacturing sector, to reduce their financial burden by providing a subsidy on the interest they pay on term loans. This helps businesses invest in machinery and infrastructure, leading to expansion and improved production capabilities.

Who Can Benefit From This Scheme?

The scheme is primarily for micro, small, and medium enterprises involved in manufacturing. New businesses looking to start operations and existing ones planning to expand or diversify can apply. The goal is to empower these enterprises to grow and contribute more effectively to the state's economy.

Why This Scheme Is Important

MSMEs are the backbone of Gujarat's industrial landscape. By providing interest subsidies, the government aims to ease the cost of borrowing for these businesses. This makes it easier for them to access capital for expansion, upgrade technology, and increase production. Ultimately, this scheme supports job creation, economic growth, and the overall goal of making Gujarat and India more self-reliant.

Objective

This scheme aims to boost Gujarat's MSME sector, which is vital for jobs, the economy, and exports, by providing interest subsidies on term loans for manufacturing businesses.

Benefits

Financial assistance ranging from ₹2,00,000/- to ₹5,00,000/- as a subsidy for opening a showroom or mobile van:

Taluk Level: ₹2,00,000/-

Taluk & District Centers: ₹3,00,000/-

Mahanagara Palike Limits:₹4,00,000/-

BBMP Limits:₹5,00,000/-

Sources and references

Guidelines

Eligibility Criteria

Your firm must be registered as a Micro, Small, or Medium enterprise.
You need to have an acknowledgment or registration from the Ministry of MSME or the Department for Promotion of Industry and Internal Trade (DPIIT).
Both new enterprises starting operations and existing ones looking to expand or diversify are eligible.
The enterprise must start commercial production or begin providing services within the scheme's active period.
You must apply online within one year from the date of your first loan disbursement, commencement of commercial production/services, or the date the Government Resolution (GR) was issued, whichever is later.
All applications must be submitted before the scheme's final operative date.
The enterprise must ensure that all installments and interest payments to the bank or financial institution are made on time.

How To Apply

The application process is entirely online. Follow these steps:

Visit the official portal for the scheme. The link can be found in the 'Official Sources' section.
Fill in the application form with all the required details.
Upload all the necessary documents as listed.
Submit the application form after reviewing all the information.

Note: Ensure your application is submitted before the scheme's deadline.

Documents Required

A printed copy of your application, signed by an authorized person, with their designation, name, and the enterprise's stamp. This includes a declaration and undertaking as per the application form.
A copy of your Udyog Aadhaar or Udyam Registration acknowledgment.
The sanction letter for your term loan.
A copy of your term loan account statement or a bank certificate confirming the first disbursement.
Proof of the enterprise's constitution (e.g., registered partnership deed for partnerships).
A Detailed Project Report (DPR) for projects up to ₹5 crores. For projects above ₹5 crores, the District Industries Centre (DIC) will request a bank appraisal report.
Shop & Establishment Certificate, if you are running a service sector enterprise in a municipal corporation area.
Your GST registration copy, if applicable.
The enterprise's PAN card copy.
Your Income Tax Return (ITR) for the last financial year, showing the value of plant & machinery. (New enterprises need to submit a self-declaration for the first time).
For entrepreneurs under 35 years of age on the loan sanction date: Copy of birth certificate or school leaving certificate.
A caste certificate issued by a competent authority.
A certificate for differently-abled persons issued by a competent authority.
Consent to Establish (CTE) issued by the Gujarat Pollution Control Board (GPCB), if applicable.
One of the following self-certified or certified documents: 7/12 Utara, Namuna 6, index copy, property card.
NA (Non-Agricultural) permission, if applicable.
A notarized rent deed (agreement) along with the owner's proof or affidavit of property ownership.
A lease deed (agreement) with the owner's proof of property ownership.
Property tax receipt, if applicable for service activities.
A board resolution detailing the signing authority (for partnerships, LLPs, Pvt. Ltd., or Limited Companies).
A declaration and undertaking confirming no other investments in Gujarat.
An annexure of the balance sheet showing the gross fixed capital investment from the previous financial year.
A certificate from a Chartered Accountant (CA) detailing the gross fixed capital investment before starting any expansion, diversification, or integration project.

FAQ’s

What is the 'Aatmanirbhar Gujarat Scheme for Assistance to MSMEs' all about?

This is a Gujarat government initiative aimed at strengthening the MSME sector in the state. It focuses on helping these businesses grow, encouraging investments, and contributing to the vision of a self-reliant Gujarat and India.

For how long will the scheme be active?

The scheme is valid from October 5, 2022, until October 4, 2027. That's a period of five years.

What are the main goals of this scheme?

The scheme aims to boost the growth of MSMEs, improve the overall industrial environment, attract more investment, and support the vision of self-sufficiency for Gujarat and India.

What kind of support does this scheme offer?

It offers financial support, specifically an interest subsidy on term loans for micro, small, and medium enterprises in the manufacturing sector. This helps reduce the cost of borrowing for these businesses.

Who can apply for benefits under this scheme?

Any micro, small, or medium enterprise that is established and operating in Gujarat can apply. Specific eligibility criteria related to registration and business commencement apply.

How is the subsidy amount determined?

The subsidy is calculated based on the lower of two figures: the actual Gross Fixed Capital Investment (GFCI) made for the project, or the cost as appraised by a bank or financial institution.

What is the interest subsidy rate for enterprises in Category 1 taluka areas?

Enterprises located in Category 1 taluka areas can receive a 7% interest subsidy on their term loan. This subsidy is limited to a maximum of ₹35,00,000/- per year and is available for 7 years.

What is the interest subsidy rate for enterprises in Category 2 taluka areas?

For enterprises in Category 2 taluka areas, the interest subsidy is 6% of the term loan amount. The maximum subsidy is capped at ₹30,00,000/- per year, and it is provided for 6 years.

What subsidy rate is available for enterprises in Category 3 and municipal corporation areas?

Enterprises situated in Category 3 areas and municipal corporation areas are eligible for a 5% interest subsidy on their term loan. The maximum annual subsidy is ₹25,00,000/-, and it is offered for 5 years.

What if my company's actual investment is more than what the bank appraised?

If your Gross Fixed Capital Investment (GFCI) is higher than the appraised cost, the subsidy will be calculated based on the lower of the two amounts – the GFCI or the bank's appraisal value.

Does the scheme cover both new businesses and expansions?

Yes, the scheme is open to both new enterprises starting their operations and existing enterprises that are undertaking expansion or diversification projects, provided they meet all the eligibility conditions.

Can businesses located within municipal corporation limits apply?

Absolutely. Businesses operating within municipal corporation areas are eligible for the interest subsidy at a rate of 5% on their term loan, with a maximum annual benefit of ₹25,00,000/- for a duration of 5 years.

Is there any extra subsidy for women, differently-abled entrepreneurs, or startups?

Yes, there is an additional 1% interest subsidy available on the term loan for differently-abled entrepreneurs, women entrepreneurs, and registered startups in the manufacturing sector.

Are young entrepreneurs eligible for any special benefits?

Yes, young entrepreneurs who are under 35 years old as of the term loan sanction date can receive an additional 1% interest subsidy.

What is the minimum interest an eligible business must pay?

Even after availing all applicable subsidies, the eligible enterprise must pay a minimum of 2% interest on the term loan.

Can I get an interest subsidy for installing renewable energy sources?

Yes, existing enterprises can get interest subsidies if they install new solar power plants or other renewable power plants for their own use at their premises. The subsidy rates will depend on the enterprise's location.

Can the subsidy for renewable power installation be claimed multiple times?

No, the incentive for installing renewable power sources is a one-time benefit. If you have already received this subsidy under a previous scheme, you won't be eligible under this current scheme.

Can startups claim both the general subsidy and the additional 1% subsidy?

Yes, registered startups in the manufacturing sector are eligible to avail both the general interest subsidy provided under the scheme and the additional 1% subsidy.