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Subsidy Schemes for MSMEs
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Capital Subsidy

Capital subsidy on eligible fixed capital investment financed through an Bank term loan for Micro Enterprises.

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Interest Subsidy

Interest Subsidy on bank term loans for eligible MSME units in manufacturing and new service sectors.

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Net SGST Reimbursement

Net SGST reimbursement to eligible manufacturing MSMEs for up to 10 years from the date of commercial production.

Electricity Duty Exemption

100% exemption from Electricity Duty for 5 years to reduce operational power costs for new and expansion units.

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Power Connection Subsidy

Subsidy on charges paid to DISCOM for new electricity connection, additional load (expansion), or service line shifting.

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Rent Subsidy

Rent reimbursement for Micro & Small Manufacturing Enterprises operating from rented or leased industrial premises.

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Exhibition Subsidy

Assistance for MSME participation in State, National & International trade fairs and exhibitions for marketing promotion.

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CGTMSE

fees paid for CGTMSE on bank term loan is given as subsidy by Gujarat Government.

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Other MSME Subsidies

Multiple additional support schemes including technology acquisition, ZED certification, EPF reimbursement and more.

Capital Subsidy

Capital Subsidy is provided to Micro Enterprises only (Small & Medium Enterprises are not eligible) for eligible fixed capital investment financed through a term loan.

Quantum of Subsidy:

Taluka Category % of Loan Max Limit
Category 1 25% ₹35 Lakhs
Category 2 20% ₹30 Lakhs
Cat 3 / MC 10% ₹10 Lakhs

Important Conditions:

    1. The eligible unit must apply within one year from any of the following dates (whichever is later):
o Date of first disbursement of term loan, OR
o Date of commencement of commercial production
  1. The enterprise shall not be eligible for Capital Investment Subsidy under this scheme if the term loan is sanctioned after one year from the date of commencement of commercial production.
  2. Subsidy is applicable only on an eligible fixed capital investment financed through an institutional term loan.

The unit must remain in production and comply with scheme guidelines as prescribed by the Government.

Taluka Category Instruction Section

If you want to know whether your unit falls under Category 1, Category 2, or Category 3 Taluka, click below to check the official Taluka Category list.

Interest Subsidy

Assistance of Interest Subsidy to all Micro, Small & Medium Enterprises (MSMEs) – Applicable to Manufacturing units & New Service Sector

Interest Subsidy Structure

Category of Taluka Interest Subsidy (% of Term Loan) Max Limit
Category 1 7% Up to ₹35 Lakhs for 7 Years
Category 2 6% Up to ₹30 Lakhs for 6 Years
Cat 3 / MC 5% Up to ₹25 Lakhs for 5 Years

Additional Interest Subsidy Benefits

  • Extra 1% Interest Subsidy for:
    • Differently-abled entrepreneurs
    • Women entrepreneurs
    • Registered Startups
  • Extra 1% Interest Subsidy for Young Entrepreneurs (below 35 years of age)

Note: In all cases, the eligible enterprise must bear a minimum 2% interest.

Special Provision

Existing enterprises installing Solar Power Plants are also eligible for an interest subsidy under this scheme.

Taluka Category Instruction Section

If you want to know whether your unit falls under Category 1, Category 2, or Category 3 Taluka, click below to check the official Taluka Category list.

Net SGST Reimbursement to MSMEs (Only Manufacturing Sector)

This scheme provides Net SGST reimbursement to eligible manufacturing MSMEs based on Taluka Category, for a period of 10 years from the date of commercial production.

SGST Subsidy Structure

Category of Taluka Net SGST Reimbursement % Limit (Per Annum)
Category 1 100% 7.5% of EFCI
Category 2 90% 6.5% of EFCI
Cat 3 / MC 80% 5.0% of EFCI
EFCI = Eligible Fixed Capital Investment

Example of SGST Subsidy Calculation

Assumption:
Eligible Fixed Capital Investment (EFCI) = ₹10 Crore
Particulars Category 1 Category 2 Category 3
% of EFCI 7.5% 6.5% 5.0%
Total Subsidy Limit for 10 Years ₹75,00,000 ₹65,00,000 ₹50,00,000
Per Year Limit – Amount A ₹7,50,000 ₹6,50,000 ₹6,50,000
Total SGST Paid through Cash Ledger ₹5,00,000 ₹5,00,000 ₹5,00,000
Eligible SGST % 100% 90% 80%
Eligible SGST (₹) – Amount B ₹5,00,000 ₹4,50,000 ₹4,00,000
Eligible Subsidy (Lower of A or B) ₹5,00,000 ₹4,50,000 ₹4,00,000

Final Subsidy Payable Per Year

  • Category 1: ₹5,00,000
  • Category 2: ₹4,50,000
  • Category 3: ₹4,00,000

Note: The unit shall be eligible for SGST subsidy for 10 years as per the scheme guidelines.

Important Conditions

  • Applicable only for Manufacturing MSMEs
  • SGST reimbursement is calculated only on cash ledger payment (not ITC portion)
  • The maximum subsidy is limited to a specified % of EFCI
  • Unit must remain operational and comply with scheme rules

Taluka Category Instruction Section

If you want to know whether your unit falls under Category 1, Category 2, or Category 3 Taluka, click below to check the official Taluka Category list.

Power Connection Charges Subsidy

Power Connection Charges Subsidy is provided to eligible Manufacturing MSMEs for charges paid to the Power Distribution Company (DISCOM) for new electricity connection, additional load (expansion), or shifting of service line.

Eligibility Criteria

  • The enterprise must be classified as Micro, Small, or Medium Enterprise (MSME) as per scheme guidelines.
  • The unit must have Udyam Registration / DPIIT Registration.
  • Unit must be located other than GIDC / Government-approved Industrial Park.
  • Charges must be paid to the Power Distribution Licensee for:
    • New power connection, OR
    • Additional load (in case of expansion), OR
    • Shifting of the service line.
  • New & Existing Manufacturing Enterprises are eligible.
  • Service and Trading activities are not eligible.

Quantum of Subsidy

  • 35% of power connection charges paid
  • Maximum subsidy limit: ₹5.00 Lakhs during policy period

(Applicable on LT / HT Service Line Charges, excluding refundable deposit.)

Important Conditions

  • Eligible expenditure includes charges paid to DISCOM for the service line, excluding the refundable security deposit.
  • In case of additional load, fulfillment of plant & machinery expansion criteria is not mandatory.
  • MSME manufacturing enterprises must apply within one year from the date of payment of charges to the Distribution Licensee.
  • Maximum 3 applications are allowed per enterprise, subject to the overall subsidy cap of ₹5.00 Lakhs.
  • Payment must be made only through Cheque / DD / Online Mode (Cash payment not eligible).
  • Application shall be sanctioned and disbursed by the concerned DIC office.
  • The enterprise must comply with all scheme guidelines prescribed by the Government of Gujarat.

Application Process & Time Limit

  • Apply online on the IFP Portal and submit a hard copy to the concerned DIC office.

Time limit: Within 1 year from the date of payment of power connection charges.

Electricity Duty Exemption (ED Waiver)

Under the Aatmanirbhar Gujarat MSME Incentive Scheme 2022, eligible new and expansion industrial units are granted 100% exemption from Electricity Duty for a 5 years, helping reduce operational power costs and improve business viability.

Electricity Duty Exemption Benefits

  • 100% exemption from Electricity Duty
  • Exemption period: 5 years from the date of commencement of commercial production
  • Applicable to:
    • New Industrial Units
    • Expansion Projects of Existing Units

Key Eligibility Conditions

  • The application must be submitted within 90 days from the date of the first electricity sale bill.
  • The exemption applies only to electricity consumed for industrial production purposes.

Important Notes

  • Electricity duty exemption does not apply to electricity used for residential or non-industrial purposes.
  • The unit must comply with all guidelines and documentation requirements as prescribed by the Electric Duty Act.

The unit must have a sub-meter in case of expansion at the same premises.

Rent Subsidy

Assistance in Rent to Micro & Small Manufacturing Enterprises: Rent Subsidy is provided to Micro and Small Manufacturing Enterprises for rented/leased industrial shed or premises.

Quantum of Subsidy

  • 65% of rent paid (reimbursement basis)
  • Maximum ₹1,00,000 per year
  • Maximum period: 5 years

Important Conditions

  • Applicable only to Micro & Small Manufacturing Enterprises.
  • Unit must have a valid rent/lease agreement.
  • Rent must be paid through Cheque / Online mode only.
  • The application must be submitted within 1 year of the date of the rent agreement.
  • Service & Trading units are not eligible.
  • Rent Agreement between family members/blood relations will not be eligible.

The enterprise is eligible for a maximum of 3 applications.

Exhibition Subsidy

Assistance to MSME Manufacturing Enterprises for Participation in Exhibitions

Exhibition Subsidy is provided to Manufacturing MSMEs for participation in State, National & International exhibitions/trade fairs in India and abroad, to promote marketing and business expansion.

Quantum of Subsidy

Exhibition Level Subsidy Rate Maximum Limit Eligible Expenses
State Level (India) 75% ₹50,000 Stall Rent + Product Literature & Display Material (Display cost max ₹10,000)
National Level (India) 75% ₹1,00,000 Stall Rent + Product Literature & Display Material (Display cost max ₹10,000)
International Level (Within India) 75% ₹2,00,000 Stall Rent + Product Literature & Display Material (Display cost max ₹20,000)
International Level (Outside India) 60% ₹5,00,000 Stall Rent + Product Literature & Display Material (Display cost max ₹50,000)
Subsidy is reimbursement-based.

Important Conditions

    • Applicable only to Manufacturing MSMEs.
    • The unit must be in commercial production in Gujarat.
  • Maximum participation limits:
    • 5 times (Total): State + National + International (within India)
    • 3 times: International (Outside India)
  • The application must be submitted within 6 months of the last date of the exhibition.

International exhibitions must be approved by competent authorities.

OTHER SUBSIDIES FOR MSMEs

🛡️ CGTMSE Fees Reimbursement
100% reimbursement of annual CGTMSE service fees for 5 years (Only for Micro & Small Manufacturing Units)
⚙️ Technology Acquisition
65% assistance on technology acquisition Maximum ₹50 Lakhs
💻 ICT Implementation
65% assistance on ICT capital expenditure Maximum ₹5 Lakhs
🏅 ZED Certification
50% subsidy on ZED Certification charges Maximum ₹50,000
Quality Certification
50% assistance on National / International Certification & 50% cost of quality testing equipment and machinery required for certification. Maximum ₹10 Lakhs
📊 SME Exchange (IPO)
25% assistance on fundraising expenses Maximum ₹5 Lakhs (One-time)
🖥️ ERP Implementation
65% assistance on ERP installation Maximum ₹1 Lakh
🌱 Energy & Water Saving
• 75% subsidy on Energy/Water Audit (Max ₹50,000)
• 25% subsidy on recommended equipment (Max ₹20 Lakhs)
👷 EPF Reimbursement
• 100% reimbursement of Employer’s EPF contribution
• For newly employed employees, for 5 years
📋 Patent Registration
• 75% reimbursement of Patent Registration expense
Maximum ₹25 Lakhs (as per scheme norms)