Category: Uncategorized

As per GR No. IMD/HMR/e-file/9/2026/2211/I Section dated 8 September 2026, the Gujarat Government has classified 130 talukas as Category A and 138 talukas as Category B across 34 districts under the Viksit Gujarat Industrial Policy 2026. The full district-wise list is below.

The Industries & Mines Department, Government of Gujarat, has notified the revised classification of talukas for various incentive schemes under the Viksit Gujarat Industrial Policy 2026.

Vide Resolution No. IMD/HMR/e-file/9/2026/2211/I Section, approved on 8 September 2026, the Government has classified talukas into Category A and Category B for incentives under the policy. The revised classification has been made considering the provisions of the new Industrial Policy and the creation of new talukas in Gujarat.

The GR states a total of 130 Category A and 138 Category B talukas.

Complete District-Wise Category A & Category B Taluka List

The following classification is as notified in Annexure-A of the Government Resolution.

No.	District	Category A Talukas	Category B Talukas
1	Ahmedabad	Dholera, Detroj-Rampura, Dhandhuka	Viramgam, Daskroi, Bavla, Dholka, Sanand, Mandal, Ahmedabad City
2	Amreli	Khambha, Dhari, Lilia, Savar Kundla, Babra, Kunkavav Vadia, Lathi	Jafrabad, Rajula, Bagasara, Amreli
3	Anand	Tarapur, Anklav, Sojitra	Anand, Umreth, Khambhat, Petlad, Borsad
4	Arvalli	Dhansura, Malpur	Meghraj, Bayad, Bhiloda, Modasa, Shamalaji (Bhiloda), Sathamba (Bayad)
5	Banas Kantha	Amirgadh, Danta, Dhanera, Kankrej, Vadgam, Dantiwada, Hadad (Danta), Ogad (Kankrej)	Deesa, Palanpur
6	Bharuch	Netrang	Bharuch, Jhagadia, Vagra, Anklesvar, Hansot, Valia, Jambusar, Amod
7	Bhavnagar	Jesar, Umrala, Vallabhipur, Gariadhar, Palitana, Talaja, Ghogha	Bhavnagar, Mahuva, Sihor
8	Botad	Ranpur, Gadhada, Barwala, Botad	—
9	Chhota Udepur	Chhota Udepur, Kavant, Nasvadi, Sankheda, Bodeli, Jetpur Pavi, Kadval (Jetpur Pavi)	—
10	Devbhumi Dwarka	Kalyanpur, Bhanvad	Khambhalia, Okhamandal
11	Dahod	Dhanpur, Sanjeli, Limkheda, Dahod, Fatehpura, Jhalod, Singvad, Garbada, Devgadbaria, Sukhasar (Fatehpura), Guru Govind Limbdi (Jhalod)	—
12	Gandhinagar	—	Kalol, Dehgam, Gandhinagar, Mansa
13	Gir Somnath	Gir Gadhada, Talala	Una, Kodinar, Sutrapada, Veraval
14	Jamnagar	Jodiya	Lalpur, Jamnagar, Jamjodhpur, Kalavad, Dhrol
15	Junagadh	Bhesan, Mendarda	Junagadh City, Visavadar, Malia Hatina, Mangrol, Vanthali, Manavadar, Keshod
16	Kachchh	Rapar, Nakhatrana, Lakhpat, Mandvi	Mundra, Anjar, Gandhidham, Abdasa, Bhachau, Bhuj
17	Kheda	Galteshwar, Matar, Vaso, Mahudha	Kheda, Nadiad, Mehmedabad, Kathlal, Thasra, Kapadvanj, Fagvel (Kathlal and Kapadvanj)
18	Mehsana	Satlasana, Jotana, Kheralu, Becharaji, Vadnagar	Kadi, Mehsana, Unjha, Vijapur, Visnagar
19	Mahisagar	Khanpur, Kadana, Virpur	Lunawada, Balasinor, Santrampur, Godhar (Santrampur, Shehra), Kothamba (Lunawada)
20	Morbi	Maliya	Wankaner, Morbi, Tankara, Halvad
21	Narmada	Garudeshwar, Dediapada, Tilakwada, Sagbara, Chikda (Dediapada)	Nandod
22	Navsari	Khergam	Navsari, Bansda, Chikhli, Jalalpore, Gandevi
23	Panch Mahals	Ghoghamba, Morwa (Hadaf), Jambughoda, Shehera	Halol, Kalol, Godhra
24	Patan	Sarasvati, Santalpur, Shankheshwar, Sami, Radhanpur, Harij	Sidhpur, Chanasma, Patan
25	Porbandar	Kutiyana	Porbandar, Ranavav
26	Rajkot	Vinchhiya, Jamkandorna	Paddhari, Lodhika, Rajkot, Kotda Sangani, Jasdan, Upleta, Dhoraji, Jetpur, Gondal
27	Sabar Kantha	Poshina, Vijaynagar, Khedbramha	Talod, Vadali, Idar, Prantij, Himatnagar
28	Surat	Umarpada, Mahuva, Ambika (Mahuva)	Mangrol, Kamrej, Palsana, Chorasi, Olpad, Surat City, Mandvi, Bardoli, Areth (Mandvi)
29	Surendranagar	Lakhtar, Chuda, Muli, Sayla, Limbdi, Dasada, Chotila	Wadhwan, Thangadh, Dhrangadhra
30	Tapi	Kukarmunda, Uchchhal, Nizar, Dolvan, Songadh, Ukai (Songadha)	Vyara, Valod
31	The Dangs	Subir, Waghai, Aahva	—
32	Vadodara	Sinor, Desar	Vaghodia, Karjan, Padra, Savli, Vadodara, Dabhoi
33	Valsad	Kaprada, Dharampur, Nanapodha (Kaprada, Vapi, Pardi)	Valsad, Pardi, Vapi, Umbergaon
34	Vav-Tharad	Suigam, Vav, Tharad, Deodar, Dharnidhar (Vav), Rah (Tharad), Lakhani	Bhabhar

The complete classification is contained in Annexure-A of the GR across pages 2 to 6.

Why This Classification Matters for Businesses

The Viksit Gujarat Industrial Policy 2026 Update taluka classification is important for entrepreneurs and industrial units planning:

● New manufacturing projects

● Expansion of existing units

● Diversification

● Modernisation

● New investment in Gujarat

● Relocation or selection of a project location

The location of an industrial project can have an important bearing on the incentives available under the applicable scheme. However, Category A or Category B classification alone does not automatically establish incentive eligibility. The GR clearly provides that the applicable incentive package will be governed by the respective scheme’s provisions, eligibility criteria, and other terms and conditions.

This update is part of the broader Viksit Gujarat Industrial Policy 2026, covering subsidies for MSME, Large, Mega and Ultra-Mega units. 

What Should an Investor Check Before Finalising a Project Location?

Before purchasing land, taking premises, or committing substantial capital investment, an industrial unit should evaluate:

• Taluka Classification: check whether the proposed project location falls under Category A or Category B
• Enterprise Category: determine whether the unit qualifies as MSME, Large, Mega, Ultra-Mega, or another applicable category under the policy
•  Nature of Investment: identify whether the proposal is a new unit, expansion, diversification, or modernization
• Eligible Investment: determine the investment that qualifies for incentives under the respective scheme
• Applicable Incentive Scheme: review the specific subsidy/incentive available to the proposed project
• Eligibility Conditions: check investment, production, employment, commencement, and other conditions prescribed under the relevant scheme
• Financing Structure: assess term loan, working capital and promoter contribution requirements alongside the subsidy/incentive structure

Not sure which Taluka category your unit falls under, or how much subsidy you could claim? Contact SDS Fin Advisory LLP for a free eligibility check.

Frequently Asked Questions

Q1. How many talukas are Category A and Category B under the Viksit Gujarat Industrial Policy 2026?

As per GR No. IMD/HMR/e-file/9/2026/2211/I Section dated 8 September 2026, there are 130 Category A talukas and 138 Category B talukas across Gujarat’s 34 districts.

Q2. Does Category A or Category B classification alone decide my subsidy eligibility?

No. Taluka classification affects the subsidy ceiling available, but actual eligibility is governed by the applicable scheme’s own provisions, enterprise category, investment type, and eligibility conditions.

Q3. Where can I find the official list of Category A and Category B talukas in Gujarat?

The complete district-wise classification is notified in Annexure-A of GR No. IMD/HMR/e-file/9/2026/2211/I Section, dated 8 September 2026, issued by the Industries & Mines Department, Government of Gujarat.

The Viksit Gujarat MSME Subsidy Scheme 2026 (GR dated 25 September 2026, policy period 1 June 2026 to 31 May 2031) gives Micro, Small and Medium enterprises capital subsidy, interest subsidy and power tariff support of up to 45% of eligible investment in general sectors and up to 50% in selected thrust sectors, over 5 years, depending on taluka category.

The Viksit Gujarat Industrial Policy 2026 includes a dedicated Assistance Scheme for MSMEs, notified vide GR dated 25 September 2026, applicable for the policy period 1 June 2026 to 31 May 2031. The scheme supports Micro, Small and Medium Enterprises in Gujarat with capital & interest subsidy, power tariff support, and a range of additional incentives.

This guide summarises who can apply, how MSME investment slabs work, what’s eligible and ineligible for subsidy, the subsidy benefit structure for general and selected thrust sectors, and the PEC/FEC application timeline.

Key Highlights

• Policy period: 1 June 2026 to 31 May 2031 (GR dated 25 September 2026)

• MSME slabs: Micro up to ₹2.50 crore, Small up to ₹25 crore, Medium up to ₹125 crore in Plant & Machinery

• Overall subsidy ceiling: up to 45% (general sectors) or 50% (selected thrust sectors) of eligible investment over 5 years

• Term loan must be from a bank or RBI-recognised financial institution — NBFC loans are not eligible

• +1% additional interest subsidy for women-owned, first-generation and startup enterprises

Who Can Apply for the Viksit Gujarat MSME Subsidy Scheme?

Eligible applicants include companies, partnership firms (including LLPs), societies, trusts, industrial co-operative societies, and proprietary concerns engaged in, or proposed to be engaged in, manufacturing, production, processing, or job work of articles.

Category	Plant & Machinery Investment
Micro	Up to ₹2.50 crore
Small	More than ₹2.50 crore and up to ₹25 crore
Medium	More than ₹25 crore and up to ₹125 crore

For MSME classification under this scheme, Gross Fixed Capital Investment in Plant & Machinery across all units in India is considered — not just the Gujarat unit.

Can You Choose the Previous Scheme Instead of the 2026 Scheme?

• Production before 1 June 2026: previous scheme only.

• Production on or after 1 June 2026: applicant can choose the previous scheme or the 2026 scheme.

If the previous scheme is chosen:

• Application must be submitted within 6 months from the GR date.

• The option, once exercised, is final and irrevocable.

• After 6 months, applications will be considered only under the 2026 scheme.

• Commercial production must commence on or before 4 October 2027 to avail the previous scheme’s benefits.

For the 2026 scheme, eligible fixed capital investment under the applicable provision covers assets acquired and paid for from 1 January 2026, subject to the scheme conditions.

New Enterprise, Expansion or Diversification — How Are They Defined?

New Enterprise

A new MSME commencing commercial production during the operative period. Any new or existing unit that undertakes expansion or diversification at a premises other than its existing premises is also treated as a ‘New Unit’.

Existing Enterprise

An enterprise already in production before the expansion or diversification begins.

Expansion

• Investment at the same premises must increase existing GFCI (excluding land) by at least 50%.

• At least 60% of that investment must be in Plant & Machinery.

• Installed capacity must increase by at least 50%.

• Existing capacity utilisation must have reached at least 75% in any one of the preceding three financial years.

• The project is eligible only after one year from Project Completion of the existing unit, or one year from its DoCP, whichever is later.

Diversification

• Investment at the same premises must increase existing GFCI by at least 25% for Micro/Small and at least 50% for Medium enterprises.

• At least 60% of that investment must be in Plant & Machinery.

What Investment Counts Towards the MSME Subsidy?

Eligible Fixed Capital Investment

• New Building

• Other Construction

• Plant & Machinery (New)

• Project Related Infrastructure

Ineligible Fixed Capital Investment

• Land and land development cost

• Working capital

• Goodwill and royalty

• Preliminary and pre-operative expenses

• Second-hand plant & machinery (indigenous and/or imported)

• Capitalised interest

• Rented/leased assets, including building

• Power generation plant, except for captive use within the premises

• Renewable power plant for third-party sale or non-captive use

• Design/drawing, consultancy, supervision and third-party inspection fees without technology acquisition

What Is the Eligible Fixed Capital Investment Period?

Gross Fixed Capital Investment (GFCI)	Eligible Investment Period
Up to ₹50 crore	12 months from DoCP
More than ₹50 crore up to ₹125 crore	18 months from DoCP

• Assets acquired and paid for from 1 January 2026 can be considered, subject to the scheme conditions.

• The enterprise must commence commercial production during the operative period.

• MSME status is decided as on the date of project completion.

What Subsidy Benefits Do MSMEs Get in Gujarat?

Benefits combine capital subsidy, interest subsidy and power tariff support, subject to an overall ceiling of eligible investment over 5 years. Location matters: Category A talukas receive the higher slab, Category B the lower. The term loan must be from a bank or RBI-recognised financial institution — NBFC loans are not eligible for subsidy.

General MSME Sectors

Component	Category A Taluka	Category B Taluka
Overall ceiling (5 years)	45% of eligible investment	35% of eligible investment
Capital subsidy	35%	25%
Interest subsidy	7% on term loan, 5 years (max 10% of investment)	7% on term loan, 5 years (max 10% of investment)
Power tariff	₹2 per unit, 5 years (max 25%)	₹1 per unit, 5 years (max 25%)
Annual cap – Micro	Year 1: 37% | Years 2–5: 2%	Year 1: 27% | Years 2–5: 2%
Annual cap – Small/Medium	9% per year	7% per year
Women / first-gen / startup	+1% interest subsidy	+1% interest subsidy

Selected MSME Thrust Sectors (Sports Goods, Toys, Footwear, Robots, Drones)

Component	Category A Taluka	Category B Taluka
Overall ceiling (5 years)	50% of eligible investment	45% of eligible investment
Capital subsidy	Micro: 35% EFCI in 1 yearSmall/Medium: 35% EFCI over 5 years	Micro: 30% EFCI in 1 yearSmall/Medium: 30% EFCI over 5 years
Interest subsidy	7% on term loan, 5 years (max 20% of EFCI)	7% on term loan, 5 years (max 20% of EFCI)
Power tariff	₹2 per unit, 5 years (max 20% of EFCI)	₹1 per unit, 5 years (max 20% of EFCI)
Annual cap – Micro	Year 1: 38% | Years 2–5: 3%	Year 1: 33% | Years 2–5: 3%
Annual cap – Small/Medium	10% per year	9% per year
Women / first-gen / startup	+1% interest subsidy	+1% interest subsidy

EFCI – Eligible Fixed Capital Investment. See our Category A / Category B taluka list for how project location affects these slabs.

What Other Incentives Are Available to MSMEs?

For MSMEs (General)

Scheme	Benefit	Maximum
Electricity Duty Exemption	100% exemption for 5 years	—
EPF Reimbursement	100% employer EPF for new employees, up to 5 years	₹1,800/₹2,500 (women)/₹3,000 (specially abled) p.m.
Power Connection Charges	35% of charges	₹5 lakh
CGTMSE Fee	100% of annual fees, up to 5 years	—
Rent Assistance	65% of rent (75% for women-owned), 5 years	₹3 lakh per year
Quality Certification	50% certification fee + 50% testing equipment cost	₹10 lakh
ERP Assistance	65% of ERP capital cost	₹1 lakh
Energy & Water Saving	75% audit cost + 25% of equipment cost	₹0.50 lakh & ₹20 lakh
SME Exchange Assistance	25% of cost	₹5 lakh
Technology Acquisition	65% of cost	₹50 lakh
Patent Registration	75% of cost	₹25 lakh

For MSMEs (Selected Thrust Sector)

Incentive	Benefit	Maximum
Stamp Duty & Registration	100% reimbursement	—
IPR Support	75% reimbursement	₹1 crore
Technology Acquisition	65% reimbursement	₹1 crore
International Certification	100% reimbursement	₹5 crore
Manpower Training	Up to ₹8,000/employee/month	—
Creative Design Studio	50% of expenses	₹5 crore
AI Subscription (for Micro)	80% of fees	₹1 lakh/year × 3 years

What Is the Application Procedure & Timeline?

Stage	Application	Timeline
After DoCP; investment not fully completed	PEC	Within 6 months from DoCP or 6 months from GR date, whichever is later
Entire investment completed on DoCP	Direct FEC	Within the time limit prescribed above
Entire investment completed within eligible period	Direct FEC	Within 6 months from project completion or 6 months from GR date, whichever is later
Investment not completed within eligible period	FEC	Within 6 months from the last date of the eligible investment period
PEC not filed in time	Direct FEC	Within the respective prescribed FEC time limit
Delayed FEC within 2 years	Delayed FEC	Delayed incentive period
Beyond 2 years	—	Not entertained

DoCP – Date of Commercial Production   PEC – Provisional Eligibility Certificate   FEC – Final Eligibility Certificate   GR – Government Resolution

Time-sensitive: for units producing on or after 1 June 2026, the 6-month PEC/FEC window measured from the GR date points to 25 March 2027 (6 months from the 25 September 2026 GR). Confirm the exact deadline for your case before it passes.

Key Takeaways

• The Viksit Gujarat MSME Subsidy Scheme runs from 1 June 2026 to 31 May 2031, under a GR dated 25 September 2026.

• MSME status depends on Plant & Machinery investment: Micro up to ₹2.5 crore, Small up to ₹25 crore, Medium up to ₹125 crore.

• Subsidy combines capital subsidy, 7% interest subsidy and power tariff support, capped at 35%–50% of eligible investment depending on taluka category and sector.

• Only bank/RBI-recognised FI term loans qualify — NBFC loans are excluded.

• PEC/FEC filing deadlines are strict; a delayed FEC beyond 2 years is not entertained.

Frequently Asked Questions

What is the Viksit Gujarat MSME Subsidy Scheme 2026?

It is the Assistance Scheme for MSMEs under the Viksit Gujarat Industrial Policy 2026, notified vide GR dated 25 September 2026, applicable for the policy period 1 June 2026 to 31 May 2031. It offers capital subsidy, interest subsidy, power tariff support and other incentives to eligible Micro, Small and Medium enterprises in Gujarat.

Who is eligible for the Viksit Gujarat MSME subsidy?

Companies, partnership firms including LLPs, societies, trusts, industrial co-operative societies and proprietary concerns engaged or proposed to be engaged in manufacturing, production, processing or job work of articles, and classified as Micro, Small or Medium based on Plant & Machinery investment, can apply.

What are the MSME investment limits under the 2026 scheme?

Micro: up to ₹2.50 crore in Plant & Machinery. Small: more than ₹2.50 crore up to ₹25 crore. Medium: more than ₹25 crore up to ₹125 crore. Gross Fixed Capital Investment in Plant & Machinery across all units in India is considered for classification.

How much subsidy can an MSME get under Viksit Gujarat Industrial Policy 2026?

For general MSME sectors, the overall ceiling is up to 45% of eligible investment in Category A talukas and 35% in Category B, over 5 years. For the 5 selected thrust sectors (sports goods, toys, footwear, robots, drones), the ceiling rises to up to 50% in Category A and 45% in Category B.

Is a loan from an NBFC eligible for the MSME subsidy?

No. The scheme requires the term loan to be from a bank or an RBI-recognised financial institution. Loans from NBFCs are not eligible for the subsidy.

What is the application timeline for PEC and FEC under the MSME scheme?

After the Date of Commercial Production (DoCP), if investment is not fully completed, an application for a Provisional Eligibility Certificate (PEC) must be filed within 6 months from DoCP or 6 months from the GR date, whichever is later. A Final Eligibility Certificate (FEC) follows once the project and investment are complete, and a delayed FEC is allowed up to 2 years with a delayed incentive period.

Can an existing MSME apply for subsidy on expansion or diversification?

Yes. For expansion, Gross Fixed Capital Investment at the same premises (excluding land) must rise by at least 50%, with at least 60% in Plant & Machinery, and installed capacity must increase by at least 50%, with prior utilisation of at least 75% in one of the preceding three years. For diversification, GFCI must rise by at least 25% for Micro/Small and 50% for Medium units, with at least 60% in Plant & Machinery.

Need help checking your eligibility or filing the PEC/FEC application? 

Contact CA Dinesh Shah & Associates for scheme-specific guidance.

The Ministry of Micro, Medium, and Small Businesses (MSME) has been affected by the unusual situation caused by COVID-19 and the resulting lockdown. The Small Industries Development Bank of India (SIDBI) has launched the TWARIT (Timely Working Capital Assistance to Revitalize Industries in Times of Corona Crisis) Scheme to help MSMEs stay afloat during the crisis. The SIDBI intends to provide relaxation to the MSME sector as part of this Program by offering 20percent of overall outstanding loans up to INR 25 crore. The TWARIT Scheme of SIDBI is defined in detail in this article.

Timely Working Capital Assistance to Revitalize Industries in Times Of Corona Crisis, as previously mentioned, is a unique solution to the extraordinary situation created by the COVID-19 pandemic. The Timely Working Capital Assistance to Revitalize Industries in the Times of Corona Crisis Scheme aims to provide much-needed assistance to MSME units whose operations have been harmed by COVID 19.

ELIGIBILITY CRITERIA FOR THE SCHEME

• Panhandler accounts must be less than or equivalent to 2 months past due as of February 29, 2020, to qualify for the TWARIT scheme.
• To be eligible for the Program, all active applicant accounts, including those under Credit Delivery Arrangement, must total ₹25 crores in outstanding credit facilities as of 29-Feb-2020.
• Existing clients on the Bank’s records are eligible for the TWARIT Scheme.
• To benefit from the TWARIT scheme, the MSME must be GST certified in all instances; however, this requirement does not apply to organizations that are not required to register for GST.
• The entity’s turnover must be at least ₹25 crores to qualify for the payout in the FY 2019-20.
• The qualifying individual will be given an opt-out option under the TWARIT program, allowing them to choose whether they are interested or not in choosing the program.

The Scheme will be available to all applicants who have not been listed as Special Mention Accounts (SMA 2) or Search Queries Non-Performing Asset (NPA) by several of the Member Lending Institutions (MLIs) as of February 29, 2020.

BENEFITS OF THE SCHEME

• The applicant would have a four-year loan repayment period with a one-year moratorium under the TWARIT Scheme.
• The TWARIT pre-payment scheme does not include any penalties for the customers.
• MSME units do not have to pay any organizer’s contribution to secure a loan under this SIDBI Program.
• There is no cost to apply for a loan through the TWARIT program.

SECURITY UNDER THE SCHEME

• Under the TWARIT program, SIDBI makes the addition of charges on the Primary Safety or Conditional Safety.
• In case of cash flows and safety, the additional Working Capital Term Loan facility issued under TWARIT would be placed second behind current credit facilities, with a fee on assets funded under the TWARIT Scheme to be generated within three months of loan disbursement.
• Under this SIDBI Program, no extra collateral would be needed for additional financing.

RATE OF INTEREST

8.25 percent per annum standard rate with yearly reset.

TENURE

The loan scheme has a four years term.

FEE FOR APPLICATION PROCESSING

SIDBI will not charge an extra charge because additional credit under TWARIT is given to current customers, as previously stated.

SCHEME PROCEDURE FOR APPLICATION

The TWARIT scheme includes an automatic pre-approval process, eliminating the need for the borrower to notify the SIDBI for a loan. SIDBI will send qualifying applicants an offer letter for a preapproved loan, which they may approve or disapprove. If the MSME approves the bid, the applicant must complete the required paperwork.

A different account for the loan will be there for the applicant as part of this Program for the possibility of raising additional credit. This new account would be different from the consumer’s current loan account.

M/s Dinesh J. Shah & Associates is a CA firm in the field of Project Finance and Government Subsidy, Taxation, GST, Audit for more than 20 years. If you need further clarification/query, you can contact us on 9825373707 or mail at info@djshahca.com or officeidk@gmail.com.

The scheme aims to provide financial Assistance by Term loan to the existing MSME units who want to undertake expansion/modernization/capital expenditure in the same line of business by way of purchase of land, construction of factory building, Purchase of equipment, Plant & Machinery and Misc. Fixed assets, Installation of Rooftop Solar Projects, Acquisitions of other energy efficiency devices. This scheme is valid up to 31st March 2022 and may be extended on a need basis.

Eligible Criteria:-

• Financial assistance shall be provided to Micro, small and medium enterprises engaged in high growth and priority sectors (including sunrise sector), thrust sectors for undertaking expansion/modernization/capital expenditure.
• Brownfield enterprises having a minimum of 2 Years of operation and Audited accounts for at least two full years are eligible under the ARISE scheme.
• There must be cash profits in the last audited financial results.

List of Eligible Sectors under ARISE scheme
Automobiles (excluding dealership)	Automobile Components (include general Engg.)	Medical Equipment, healthcare and hospitals, and Nursing homes and Diagnosting Centers
Chemicals and Chemical products	Paper & Paper Products (include Printing)	Renewable Energy including Rooftop solar Projects
Electronic systems	Electrical Machinery	Rubber and Plastic
Food Processing	Textile and Garments	Ceramics and Stone Processing
Iron and steel	Drugs and Pharmaceuticals	Biotechnology
Aerospace& Defence

• MSME setting their projects other than the above-mentioned sectors may also allow being covered under the scheme subject to the approval of RO In- charge.

Quantum of Assistance: 

• Term loan up to Rs. 500 Lakh per borrower subject to a maximum of 80 % of the project cost shall be allowed.
• For smaller loans up to Rs. 3 crore for machinery/ equipment finance, 100% of the project cost shall be allowed.
• Higher term loan for plant & machinery, purchase of land, construction of factory building, etc. up to Rs. 700 lakh to one borrower can be allowed subject to the approval of RO In-charge.
• Promoters have to contribute a minimum of 20% of the project cost. In case of loans up to Rs. 3 crore on machinery/equipment where 100% financing is proposed, cash collateral up to 25% of project cost on the lines of SPEED scheme shall be applicable.

 Interest rate and Repayment:

• Interest rate will be 5.50 % to 6.80 % p.a for the first year. From the next years, it will be as per internal rating.
• Repayment up to 7 years including moratorium up to 2 Years.

Conclusion:

This scheme is to promote existing MSME engaged in high growth and priority sectors for undertaking Expansion/modernization projects.  The main benefits of the schemes are attractive ROI, 80% finance of project cost, maximum subsidy benefit, lowest security requirement, and quick sanction. MSME who wants machinery finance for their expansion project can avail 100% financing up to Rs. 3.00 Crore with an attractive rate of interest.      

M/s Dinesh J. Shah & Associates is a practicing CA firm in Ahmedabad in the field of Taxation, GST, Audit, Project Finance, and Government Subsidy for more than 20 years. If you have any queries, feel free to contact us on 9825373707 or mail at info@djshahca.com or officeidk@gmail.com

The STHAPAN Scheme aims to promote capital investments in the MSME sector by assisting Greenfield Manufacturing units. It provides financial assistance by way of term loan for plant & machinery, purchase of land, construction of factory building, purchase of equipment, Misc. fixed assets, installation of rooftop solar projects, etc. under the product-linked incentive schemes. This scheme is valid up to 31st March 2022 and may be extended on a need basis.

Eligibility Criteria:

• The main objective of STHAPAN is to provide financial assistance to Greenfield units for setting up new units.
• The Promoters of new entity should have 5 years of experience in the business. 

List of sectors under STHAPAN Scheme
Automobiles and Auto Components (excluding dealership but including general Engg.)	Specialty Steel
White Goods (including ACs and LEDs)	Textile Products: MMF Segment and technical textiles
High-efficiency solar PV modules	Advanced Chemistry Cell (ACC) Battery
Drugs and Pharmaceuticals(including ingredients)	Food Products
EV Charging Stations	Medical devices
Healthcare Centers (including Hospitals, nursing homes, and diagnostic centers)	Mobile Phone and accessories
Agri allied sectors	Renewable sectors (including rooftop solar
Aerospace and defense	Garmenting
Paper & Paper Products	Rubber and Rubber Products
Plastic & Plastic products (excluding single-use plastic	Chemical and Chemical Products

• MSMEs projects other than the above-mentioned sectors may also be allowed to be covered under the scheme subject to in-principle approval from RO In-charge.  

Quantum of Assistance:

• Term Loan up to Rs.1500 Lakh per unit/ borrower, subject to a maximum of 75% of the project cost.
• Higher Term loan for plant & machinery, purchase of land and construction of the building, etc. up to Rs.2000 Lakh to one unit shall be subject in-principle approval as per Loan Policy.
• Promoters have to contribute a minimum of 25% of the project cost.

Interest rate and Repayment:

• Interest rate will be 6.00 % to 7.30 % p.a for the first year. From the next years, it will be as per internal rating.
• Repayment up to 7 years including moratorium up to 2 Years.

Conclusion:

This scheme will boost capital investment in Greenfield manufacturing units.  Attractive rate of interest, term loan up to Rs. 2000.00 lakhs and quick sanctions are the main benefits under the scheme. MSME setting up their new units in identified sectors are benefited under this scheme.

If you need further clarification/query, you can contact us on 9825373707 or mail at info@djshahca.com or officeidk@gmail.com

M/s Dinesh J. Shah & Associates is a practicing CA firm in Ahmedabad in the field of Taxation, GST, Audit, Project Finance, and Government Subsidy for more than 20 years.