Gujarat Industrial Policy 2020
Dr. Babasahab Ambedkar Udyog Uday Yojana
1. Name of the Scheme
Dr. Babasahab Ambedkar Udyog Uday Yojana (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 and in which contribution of SC / ST entrepreneur is 51% or more.
- 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 Subsidy
Manufacturing Sector
| Category | Capital Subsidy | Interest Subsidy |
|---|---|---|
| Category I Taluka | @ 30% of Term Loan with a maximum cap of Rs. 40 Lakhs (if eligible FCI is over 10 Crore, additional INR 10 Lakh will be given | @ 8% on Term Loan with a maximum cap of Rs. 35 Lakhs per annum for a period of 7 years |
| Category II Taluka | @ 25% of Term Loan with a maximum cap of Rs. 35 Lakhs (if eligible FCI is over 10 Crore, additional INR 7.5 Lakh will be given | @ 7% 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 | @ 15% of Term Loan with a maximum cap of Rs. 15 Lakhs (if eligible FCI is over 10 Crore, additional INR 5 Lakh will be given | @ 6% on Term Loan with a maximum cap of Rs. 25 Lakhs per annum for a period of 5 years |
- 1% additional interest subsidy to differently abled entrepreneur, Women entrepreneur and registered startup in manufacturing sector.
- 1% additional interest subsidy to young entrepreneur below age of 35 years as on date of sanction of term loan.
- 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.
Service Sector
| Category | Interest Subsidy |
|---|---|
| Category I Taluka | @ 8% on Term Loan with a maximum cap of Rs. 35 Lakhs per annum for a period of 7 years |
| Category II Taluka | @ 7% 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 | @ 6% 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 raising Capital through SME Exchange
- Assistance for Power Connection Charges
- Assistance to basic industrial infrastructure (Water, Gas and Approach Road)
- Assistance to special Entrepreneurship training with 360 degree approach with mentoring support and sustenance allowance for Promoter / Entrepreneurs
- Assistance to GIDC for developing multi-Storied shed in estates