About this business scheme
The scheme "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" launched by the Industries and Mines Department aims to position Gujarat as a global business hub, promoting sustainable manufacturing, MSME growth, and export competitiveness.
The scheme "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" 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 entrepreneurs and strengthens MSMEs, making them globally competitive.
The component "Assistance for Interest Subsidy (Manufacturing Sector)" aims to support manufacturing enterprises by providing an interest subsidy on term loans. The subsidy percentage and duration vary based on the category of the taluka. Additional benefits are available for differently-abled entrepreneurs, women entrepreneurs, registered startups, and young entrepreneurs below 35 years.
Benefits at a glance
| Scheme name | Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Interest Subsidy (Manufacturing Sector) (SAMSMEIS) |
|---|---|
| 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 | Not given in the official listing |
| DBT (direct bank transfer) | No |
| Age | 7+ years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 7+ years
- 📝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 | 7% on Term Loan with a maximum amount of Rs. 35,00,000/- per annum for a period of 7 years |
| Category II | 6% 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 | 5% on Term Loan with a maximum amount of Rs. 25,00,000/- per annum for a period of 5 years |
Who qualifies
- The firm must be a Micro/Small/Medium enterprise.
- The enterprise must be in the manufacturing sector.
- The term loan must be sanctioned by a recognized Bank/Financial Institution (excluding NBFCs).
- The enterprise must apply within one year of loan disbursement or before the commercial production starts.
- The enterprise must remain operational for at least 7 years post-subsidy approval.
- The enterprise must comply with pollution control measures.
- Only one type of investment (Forward Integration, Backward Integration, Diversification, or Expansion) will be eligible for subsidy.
Who is not eligible
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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 Here.
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 "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" aims to position Gujarat as a global business destination by promoting sustainable manufacturing, inclusive development, and balanced regional growth.
What is the duration of the scheme?
The scheme is effective from August 7, 2020, and will remain in operation until August 6, 2025.
What is the objective of the component "Assistance for Interest Subsidy (Manufacturing Sector)"?
The component "Assistance for Interest Subsidy (Manufacturing Sector)" aims to support manufacturing enterprises by providing an interest subsidy on term loans.
Who is eligible to apply under this scheme?
Any manufacturing enterprise that has taken a term loan from an RBI-regulated bank or financial institution and meets the employment, investment, and compliance conditions is eligible for the subsidy.
What is the maximum amount of interest subsidy that an enterprise can receive?
The maximum subsidy amount depends on the category of the taluka:
Rs. 35 lakhs per annum for Category I talukas.
Rs. 30 lakhs per annum for Category II talukas.
Rs. 25 lakhs per annum for Category III talukas and municipal corporation areas.
Can a service sector enterprise apply for this subsidy?
No, this scheme is specifically designed for enterprises in the manufacturing sector.
Are all term loans eligible for the interest subsidy?
No, only term loans sanctioned by RBI-regulated banks and financial institutions are eligible. Loans from Non-Banking Financial Companies (NBFCs) are not covered under this scheme.
Can an enterprise avail both state and central government interest subsidies?
Yes, an enterprise can avail of both state and central government subsidies, but the total subsidy received from both sources cannot exceed the total interest paid to the bank or financial institution.
Are existing businesses eligible to apply for the subsidy?
Yes, existing businesses can apply, particularly if they are investing in expansion, diversification, forward or backward integration, or installing renewable energy solutions.
Does the scheme provide any additional benefits for specific entrepreneurs?
Yes, the scheme offers an additional 1% interest subsidy for women entrepreneurs, differently-abled entrepreneurs, registered startups, and young entrepreneurs below the age of 35 years.
Will an enterprise continue to receive the subsidy if it defaults on loan repayments?
No, if an enterprise defaults on interest or loan repayments, the subsidy will not be provided for the default period.
What happens if an enterprise ceases operations before completing seven years?
If an enterprise discontinues production within seven years, the subsidy amount disbursed will be recovered as arrears of land revenue.
Is it mandatory for an enterprise to comply with pollution control regulations?
Yes, all enterprises must adhere to the pollution control norms prescribed by the relevant authority, such as the Gujarat Pollution Control Board (GPCB) or other competent bodies.
Can an enterprise claim the subsidy for installing a solar power plant?
Yes, an enterprise installing a solar power plant or other renewable energy systems for captive consumption is eligible for the interest subsidy. However, this incentive is available only once.
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
- Category Of Taluka indextb.com (PDF)
tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.
The details on this page are from the official listing and have not been rewritten or reviewed by our team yet. Confirm them on the official portal before applying.
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