About this business scheme
The scheme "Dr.Babasaheb Ambedkar Udyog Uday Yojana" aims to support SC/ST entrepreneurs and strengthen MSMEs, making them globally competitive.
The scheme "Dr.Babasaheb Ambedkar Udyog Uday Yojana" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from August 7th, 2020 to August 6th, 2025, this initiative supports SC/ST entrepreneurs and strengthens MSMEs, making them globally competitive.
The component "Assistance for Interest Subsidy (Service Sector)" provides an interest subsidy on the term loan to support micro-enterprises in the service sector.
Benefits at a glance
| Scheme name | Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Service Sector) (BAUUYISSS) |
|---|---|
| Launched by | Industries and Mines Department |
| Launch year | 2020 |
| Benefit type | Cash (money paid to your bank account) |
| Category | Business |
| Level / State | State · Gujarat |
| Official portal | ifp.gujarat.gov.in (link at the end of this page) |
Key facts
| Scheme for | Infra |
|---|---|
| Application mode | Online |
| Last date | Ongoing (no last date notified) |
| DBT (direct bank transfer) | No |
Who can apply (quick check)
- 👤All genders
- 📝Online
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
Financial Assistance:
| Category of Taluka | Quantum of Incentive |
| Category I | 8% on Term Loan with a maximum amount of Rs. 35,00,000/- per annum for a period of 7 years |
| Category II | 7% on Term Loan with a maximum amount of Rs. 30,00,000/- per annum for a period of 6 years |
| Category III & Municipal Corporation Areas | 6% on Term Loan with a maximum amount of Rs. 25,00,000/- per annum for a period of 5 years |
Additional Subsidy: 1% extra interest subsidy for registered startups in the service sector with Udyam/MSME Registration.
Who qualifies
- The firm must be a Micro/Small/Medium enterprise run by SC/ST entrepreneur.
- The enterprise must be a manufacturing enterprise.
- Only new MSMEs in the service sector (as per Annexure A and B) are eligible.
- The enterprise must have a term loan sanctioned for new machinery, equipment, or furniture/fixtures.
- The loan should be sanctioned within one year before the commencement of commercial production.
- Enterprises must have proper tax and business registrations.
Note:
SC/ST Enterprise: SC/ST Enterprise means the enterprise in which contribution of SC/ST entrepreneur is 51% or more.
Who is not eligible
- Enterprises whose term loan is sanctioned after one year from the commencement of commercial production.
- Enterprises defaulting on loan repayments as per RBI and bank guidelines.
- Enterprises seeking reimbursement for penal interest or other bank charges.
- Enterprises availing interest subsidy under any Central Government scheme where the total subsidy exceeds the total interest paid.
Papers to keep ready
- Printed copy of the application along with declaration and undertaking in the application form signed by an authorized person, including their designation and name with the enterprise's stamp.
- Copy of acknowledgment of Udyog Aadhaar / Udyam Registration.
- Copy of term loan sanction letter.
- Copy of term loan account statement / bank certification of first disbursement certificate.
- Copy of the constitution of the enterprise (registered partnership deed for partnerships).
- Copy of DPR of the enterprise (for projects up to Rs. 5 crores); for projects above Rs. 5 crores, DIC will ask for a bank appraisal report.
- Shop & Establishment Certificate (for service sector enterprises in municipal corporations).
- Copy of GST registration (if applicable).
- Copy of PAN card of the enterprise.
- Copy of ITR for the last financial year showing plant & machinery value (new enterprises must submit a self-declaration for the first time).
- Copy of birth certificate/school leaving certificate (for entrepreneurs under 35 years as of the bank loan sanction date).
- Copy of caste certificate from a competent authority.
- Copy of certificate for differently abled persons from a competent authority.
- Copy of CTE issued by the GPCB (if applicable).
- Self-certified/certified copy of documents such as 7/12 Utara, Namuna 6, copy of index, property card, etc. (any one).
- NA permission (if applicable).
- Copy of notarized rent deed (agreement) with the owner's proof/affidavit for ownership of land/property.
- Copy of lease deed (agreement) with the owner's proof of ownership of land/property.
- Copy of the property tax receipt (for service activities).
- Board resolution for signing authority (in case of partnerships, LLPs, Pvt. Ltd., or Limited Companies).
- Declaration and undertaking regarding other investments in Gujarat.
- Annexure of the balance sheet showing the gross fixed capital investment of the previous financial year.
- CA certificate showing the gross fixed capital investment before initiating expansion/diversification/forward or backward integration.
Registration walkthrough
Online
Registration Process:
Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Post-Registration Process:
Step-1: Visit the Investor Facilitation Portal (IFP) portal. Click on "Login".
Step-2: Enter the email address and password you used during registration.
Step-3: Click the "Login" button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.
Helpdesk: Contact
Important dates
| Launch / start | 07 Aug 2020 |
|---|
Terms used in this scheme
- Micro, Small and Medium Enterprise
An Enterprise which satisfies the conditions of Micro, Small and Medium Enterprises as per the definition under the MSME Development Act, 2006 and subsequently amended from time to time by Government of India and has obtained acknowledgement of “Udyog Aadhaar Memorandum / Udyam Registration.
- New Enterprise
New Enterprise means MSME, which has filled Udyog Aadhar / Udyam Registration as prescribed by the Government of India and commences commercial production during the operative period of the scheme.
- Existing Enterprise
An Existing Enterprise means MSME which has commenced commercial production before the date of announcement of the scheme.
- Expansion
Expansion means where an existing/New Enterprise increases its investment in gross fixed capital by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing gross fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme.
- Gross Fixed Capital Investment (GFCI)
Gross Fixed Capital Investment means the investment made in building, plant and machinery, utilities, tools and equipment, and other assets (excluding Land) to manufacture the end product.
- Forward integration, Backward Integration and Diversification
- Forward Integration: An Investment made in GFCI for the product which is raw material of the enterprise will be termed as backward integration.
- Backward Integration: An Investment made in GECI for the further value addition in the end product of the enterprise will be termed as forward integration.
- Diversification: An investment made in GFCI for the product other than the end product of the enterprise will be termed as diversification.
- Term Loan
Term loan means loan sanctioned by the financial institution / Bank (Except NBFC) for the acquisition of GFCI of the enterprise. However, only the amount actually disbursed against the sanctioned will be considered for the incentives under the scheme.
- Pipeline Enterprises
The Enterprises which have obtained first disbursement of term loan as effective step and could not start commercial production on or before 07/08/2020, shall be considered eligible as pipeline enterprise for incentive under previous scheme. Such enterprise should commence commercial production on or before 31/03/2021.However the enterprise which has obtained first disbursement on or before 07/08/2020 may opt for new scheme. Term Loan disbursement made during the policy period will be eligible for the enterprise which has opted for this scheme.
Frequently asked questions
What is the "Dr. Babasaheb Ambedkar Udyog Uday Yojana"?
It is a special scheme introduced under the Industrial Policy 2020 to provide financial assistance and support to Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs in the MSME sector.
What sectors are prioritized under the Industrial Policy 2020?
The policy prioritizes industries such as Auto and Auto Components, Chemicals and Petrochemicals, Pharmaceuticals, Cement, Textiles, Engineering, Gems and Jewellery, and Ceramics.
How does the scheme promote export competitiveness?
The scheme emphasizes "Vocal for Local to become Global," strengthening integrated value chains and encouraging MSMEs to enhance their export potential.
What is the duration of the scheme?
The scheme is effective from August 7, 2020, and will remain in operation until August 6, 2025.
Who is eligible to apply for the interest subsidy scheme?
Only new MSMEs in the service sector, as listed in Annexure A and B, are eligible to apply for the interest subsidy scheme.
What type of expenses are covered under the subsidy?
The subsidy covers interest on term loans taken for new machinery, equipment, and furniture/fixtures, excluding land and building.
What is the maximum subsidy amount an enterprise can receive?
The maximum subsidy amount depends on the Taluka category:
Category I: Up to Rs. 35,00,000/- per annum for 7 years.
Category II: Up to Rs. 30,00,000/- per annum for 6 years.
Category III & Municipal Corporation Areas: Up to Rs. 25,00,000/- per annum for 5 years.
Is there any additional benefit for startups?
Yes, registered startups in the service sector with Udyam/MSME registration receive an additional 1% interest subsidy.
Can an enterprise apply for the subsidy if it has already started commercial production?
No, the application must be submitted within one year from the date of loan disbursement or before the commencement of commercial production, whichever is later.
Can an enterprise avail of subsidies from both the Central and State Government?
Yes, an enterprise can avail of both subsidies; however, the total subsidy amount from both sources cannot exceed the total interest paid to the bank or financial institution.
What happens if an enterprise defaults on loan repayment?
If an enterprise defaults on loan repayment as per RBI guidelines, the interest subsidy will not be provided for the default period.
Is there any penalty for late submission of the application?
Yes, late applications will be considered with deductions for the late period from the maximum permissible subsidy.
Is MSME/Udyam registration mandatory for availing the subsidy?
Yes, an enterprise must have MSME/Udyam registration to be eligible for the interest subsidy scheme.
Can an existing business apply for this scheme?
No, only new MSMEs in the service sector are eligible to apply under this scheme.
Will the interest subsidy cover penal interest or other bank charges?
No, the interest subsidy will only cover the standard interest on the term loan and will not include penal interest or any additional bank charges.
When will the subsidy amount be reimbursed?
The subsidy will be reimbursed only after the enterprise has commenced commercial production or started providing services.
Submit your application yourself on the official portal; it costs nothing. Treat anyone demanding money to "get you approved" as a scam.
- Guidelines ic.gujarat.gov.in (PDF)
- Online Application Portal ifp.gujarat.gov.in
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
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