Gujarat Industrial Policy 2020
Scheme for assistance to Micro, Small and Medium Enterprises (MSME)
1. Name of the Scheme
Scheme for assistance to Micro, Small and Medium Enterprises (MSME) (Gujarat Industrial Policy 2020)
2. Governed By
Industries & Mines Department, Government of Gujarat
3. Operative Period
From : 07.08.2020
To : 06.08.2025
4. Who will be eligible?
- Any unit who is registered as an Industrial Unit under MSME development act, 2006 with respective DIC as manufacturing enterprise
- Only to New MSME of Service Sector as listed in annexures in the GR will be eligible for interest subsidy on the term loan on new machinery, equipment & furniture/fixture (except land & building)
- Enterprise which has obtained first disbursement during the operative period of the scheme will eligible for the assistance.
- For carrying out expansion by existing enterprise with investment in fixed capital more than 50% (out of which atleast 60% in Plant & machinery) of its existing gross fixed capital investment as on date of initiation of expansion.
- Existing or New enterprise carrying out activity of Forward Integration, Backward Integration and Diversification with more than 25% (out of which atleast 60% in Plant & machinery) as on date of initiation of diversification.
- Out of Forward Integration, Backward Integration, Diversification and Expansion only one activity will be eligible for subsidy during the policy period.
5. Assistance Available for Capital & Interest Subsidy
Manufacturing Sector
| Category | General Sectors | Thrust Sectors |
|---|---|---|
| Category I Taluka | @ 10% of eligible Fixed Capital Investment (excluding land) | @ 12% of eligible Fixed Capital Investment (excluding land) |
| Category II Taluka | @ 8% of eligible Fixed Capital Investment (excluding land) | @ 10% of eligible Fixed Capital Investment (excluding land) |
| Category III Taluka & Municipal Corp. Area | @ 4% of eligible Fixed Capital Investment (excluding land) | @ 6% of eligible Fixed Capital Investment (excluding land) |
- 1% additional interest subsidy to differently abled entrepreneur, Women entrepreneur and registered startup in manufacturing sector.
- Maximum rate of interest to an enterprise will not be more than 9%, 8%, 7% where the rate of interest subsidy is 7%, 6% and 5% respectively. However the enterprise have to bear minimum2% interest on term loan by Bank / Financial Institution.
- 1% additional interest subsidy to young entrepreneur below age of 35 years as on date of sanction of term loan.
Service Sector :
| Category | Interest Subsidy |
|---|---|
| Category I Taluka | @ 7% on Term Loan with a maximum cap of Rs. 35 Lakhs per annum for a period of 7 years |
| Category II Taluka | @ 6% on Term Loan with a maximum cap of Rs. 30 Lakhs per annum for a period of 6 years |
| Category III Taluka & Municipal Corp. Area | @ 5% on Term Loan with a maximum cap of Rs. 25 Lakhs per annum for a period of 5 years |
- 1% additional interest subsidy to registered start up in service sector and having Udyam / MSME Registration
- Service enterprise which has service tax registration are only eligible
- The enterprise shall have to obtain shop & establishment registration from Municipal Corporation if it is located in that area.
6. Basic Conditions for Capital & Interest Subsidy
- Loan sanctioned and disbursed by Bank of Financial Institution will be eligible non-banking financial institutions will not be eligible.
- Only new building, new plant & machinery / equipment and second hand imported machinery will be eligible.
- Enterprise will have to remain in production from 7 years from the date of commercial production
7. In addition to the above subsidy schemes of Capital & Interest, assistance in some other schemes are also available under this policy :
- Assistance for Quality Certification
- Financial Support to MSMEs in ZED Certification
- Assistance in implementing of Information and Communication Technology (ICT)
- Assistance for Technology Acquisition
- Assistance for Patent Registration
- Assistance for saving in consumption of Energy and Water
- Assistance for raising Capital through SME Exchange
- Assistance for reimbursement of CGTMSE fees
- Rehabilitation of Sick enterprise
- Assistance for Power Connection Charges
- Assistance in Rent to MSEs