About this business scheme
The scheme "Dr.Babasaheb Ambedkar Udyog Uday Yojana" aims to support SC/ST entrepreneurs and strengthen MSMEs, making them globally competitive.
The scheme "Dr.Babasaheb Ambedkar Udyog Uday Yojana" 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 SC/ST entrepreneurs and strengthens MSMEs, making them globally competitive.
The component "Assistance for Interest Subsidy (Manufacturing Sector)" provides financial relief to enterprises in the manufacturing sector by offering an interest subsidy on term loans. Additional benefits are available for women entrepreneurs, differently-abled entrepreneurs, startups, and young entrepreneurs below 35 years of age.
Benefits at a glance
| Scheme name | Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Manufacturing Sector) (BAUUYISMS) |
|---|---|
| Launched by | Industries and Mines Department |
| Launch year | 2020 |
| Benefit type | Cash (money paid to your bank account) |
| Category | Business |
| Level / State | State ยท Gujarat |
| Official portal | ifp.gujarat.gov.in (see References at the end) |
Key facts
| Scheme for | Infra |
|---|---|
| Application mode | Online |
| Last date | Not given in the official listing |
| DBT (direct bank transfer) | No |
Who can apply (quick check)
- ๐คAll genders
- ๐ท๏ธSC / ST
- ๐Online
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 | 8% on Term Loan with a maximum amount of Rs. 35,00,000/- per annum for a period of 7 years |
| Category II | 7% 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 | 6% 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 run by SC/ST entrepreneur.
- The enterprise must be a manufacturing enterprise.
- The enterprise must be engaged in the manufacturing sector.
- The term loan should be availed from a recognized bank or financial institution.
- The loan must be sanctioned before the enterprise starts commercial production.
- If the enterprise installs a solar/renewable energy plant, it must be for captive consumption.
- The enterprise must bear a minimum of 2% interest on the term loan.
- The application must be submitted within the prescribed timeline.
Note:
- SC/ST Enterprise: SC/ST Enterprise means the enterprise in which contribution of SC/ST entrepreneur is 51% or more.
Who is not eligible
- Enterprises whose term loan is sanctioned after one year from the commencement of commercial production.
- Enterprises defaulting on loan repayments as per RBI and bank guidelines.
- Enterprises seeking reimbursement for penal interest or other bank charges.
- Enterprises availing interest subsidy under any Central Government scheme where the total subsidy exceeds the total interest paid.
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 โUdyog 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 "Dr. Babasaheb Ambedkar Udyog Uday Yojana"?
It is a special scheme introduced under the Industrial Policy 2020 to provide financial assistance and support to Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs in the MSME sector.
What sectors are prioritized under the Industrial Policy 2020?
The policy prioritizes industries such as Auto and Auto Components, Chemicals and Petrochemicals, Pharmaceuticals, Cement, Textiles, Engineering, Gems and Jewellery, and Ceramics.
How does the scheme promote export competitiveness?
The scheme emphasizes "Vocal for Local to become Global," strengthening integrated value chains and encouraging MSMEs to enhance their export potential.
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)" provides financial support to enterprises in the manufacturing sector by subsidizing the interest on term loans.
Who is eligible to apply for the interest subsidy?
Enterprises engaged in the manufacturing sector with a valid term loan sanctioned before the commencement of commercial production are eligible to apply.
What is the maximum interest subsidy that an enterprise can receive?
The maximum interest subsidy an enterprise can receive is 8% for Category I Taluka, 7% for Category II Taluka, and 6% for Category III Taluka, including additional benefits.
For how many years will the interest subsidy be provided?
The subsidy will be provided for a period of 5 to 7 years, depending on the category of the taluka where the enterprise is located.
Can an existing manufacturing enterprise apply for the subsidy?
Yes, an existing enterprise can apply, provided it meets the eligibility criteria and has a valid term loan sanctioned before commercial production starts.
What is the minimum interest an enterprise has to bear?
Every enterprise must bear a minimum of 2% interest on the term loan, regardless of the subsidy received.
Can an enterprise apply for the subsidy after starting commercial production?
An enterprise can apply within one year from the first loan disbursement or before commercial production begins, whichever is later.
Can an enterprise avail both State and Central Government interest subsidies?
Yes, but the total interest subsidy from both the State and Central Government cannot exceed the total interest paid to the financial institution.
What happens if an enterprise defaults on loan repayment?
If an enterprise defaults on loan repayment, the default period will be deducted from the subsidy calculation, and the enterprise may lose eligibility.
Can an enterprise receive interest subsidy for installing a solar or renewable energy system?
Yes, existing enterprises that install solar or other renewable energy systems for captive consumption are eligible for an additional interest subsidy.
References and official sources
Apply only on the official portal. Nothing is applied for on this site, and applying is free.
- Guidelines (PDF) ic.gujarat.gov.in
- Online Application Portal ifp.gujarat.gov.in
grokipedia.org.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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