AGMSMECISSS

Aatmanirbhar Gujarat Scheme for assistance to MSMEs: Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Service Sector)

The "Aatmanirbhar Gujarat Scheme for assistance to MSMEs" aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports.

State Cash

States / UT: Gujarat

Nodal department: Industries and Mines Department

Scheme for: Individual

Scheme profile

DBT (direct benefit transfer): No

Scheme open date: 2022-10-05

Categories: Business & Entrepreneurship

Sub-categories: Setting up / start-up / entrepreneurship, Credit Linked Subsidy

Target beneficiaries: Business Entity, Industries

Tags: Business, Entrepreneurship, MSMEs, Interest Subsidy

Details

The "Aatmanirbhar Gujarat Scheme for MSMEs" 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 October 5, 2022, to October 4, 2027, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat."
The component "Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Service Sector)" provides an interest subsidy on the term loan to support micro-enterprises in the service sector.

Benefits

  • Category of Taluka Quantum of Incentive Category 17% on Term Loan with a maximum amount of ₹35 00 000/- per annum for a period of 7 yearsCategory 2 6% on Term Loan with a maximum amount of ₹30 00 000/- per annum for a period of 6 years Category 3 & Municipal Corporation Areas5% on Term Loan with a maximum amount of ₹25 00 000/- per annum for a period of 5 years

Category of Taluka Quantum of Incentive Category 17% on Term Loan with a maximum amount of ₹35,00,000/- per annum for a period of 7 yearsCategory 2 6% on Term Loan with a maximum amount of ₹30,00,000/- per annum for a period of 6 years Category 3 & Municipal Corporation Areas5% on Term Loan with a maximum amount of ₹25,00,000/- per annum for a period of 5 years

Eligibility

  • The firm must be a Micro/Small/Medium enterprise in the service sector.
  • The enterprise must have obtained acknowledgment or registration from the Ministry of MSME or the Department for Promotion of Industry and Internal Trade (DPIIT), as applicable.
  • Only new MSME of Service sectors will be eligible for Interest subsidy on the term loan on new machinery, equipment, and furniture/fixtures (except land and building).
  • The enterprise must submit an application online within one year of the first loan disbursement, commencement of commercial production/services, or GR issue date, whichever is later.
  • Applications must be submitted before the scheme's last operative date.
  • The enterprise must pay regular installments and interest to the bank/financial institution.

Exclusions

  • Enterprises that have availed incentives for the same GFCI under any other state government scheme or agency are ineligible unless specifically allowed.

  • Enterprises with term loans sanctioned more than one year after starting commercial production/services are ineligible.

  • Enterprises defaulting on loan repayments will not receive interest subsidies for the default period.

  • Enterprises seeking reimbursement for penal interest or other charges are ineligible for such claims.

Application Process

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.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

What is the "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs"?
The "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs" is a state initiative designed to support and strengthen the MSME sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.
When is the scheme operative?
The scheme is operative from October 5, 2022, to October 4, 2027, covering a period of five years.
What are the objectives of the scheme?
The scheme aims to boost MSME growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.
What are some initiatives included in the scheme?
The scheme includes the establishment of new industrial estates, sector-specific parks, and infrastructure projects, along with amendments to the Gujarat Industrial Policy 2020 to further support MSME growth.
Who is eligible to benefit from the scheme?
MSMEs established and operating within Gujarat are eligible to benefit from the scheme, as per the criteria defined in the policy framework.
What is the incentive rate for enterprises in Category 1 areas?
Enterprises in Category 1 areas can receive 7% of the term loan amount, with a maximum of ₹35,00,000/- per annum, for a period of 7 years.
What is the incentive rate for enterprises in Category 2 areas?
Enterprises in Category 2 areas can receive 6% of the term loan amount, with a maximum of ₹30,00,000 per annum, for a period of 6 years.
What is the incentive rate for enterprises in Category 3 and municipal corporation areas?
Enterprises in Category 3 and municipal corporation areas can receive 5% of the term loan amount, with a maximum of ₹25,00,000/- per annum, for a period of 5 years.
What additional interest subsidy is available for differently-abled entrepreneurs, women entrepreneurs, and registered startups?
Differently-abled entrepreneurs, women entrepreneurs, and registered startups in the service sector are eligible for an additional 1% interest subsidy on their term loan.
Is there any additional interest subsidy for young entrepreneurs?
Yes, young entrepreneurs below the age of 35 years on the date of term loan sanction are eligible for an additional 1% interest subsidy.
What is the minimum interest that an eligible enterprise must bear?
Eligible enterprises must bear a minimum of 2% interest on the term loan levied by the bank or financial institution.
Can an enterprise avail both state and central government interest subsidies?
Yes, but the combined subsidies must ensure that the enterprise bears at least 2% of the interest after offsetting the interest subsidy from the Government of India.
What types of enterprises are eligible for this incentive?
Only service enterprises registered under the applicable Act are eligible for the interest subsidy.
Can startups apply for the additional interest subsidy?
Yes, registered startups in the service sector are eligible for an additional 1% interest subsidy on their term loan.
Are manufacturing enterprises eligible for this interest subsidy?
No, the interest subsidy is specifically for service enterprises registered under the applicable Act.

Definitions

  • New Enterprise
  • Existing Enterprise
  • Gross Fixed Capital Investment (GFCI)
  • Eligible Fixed Capital Investment (EFCI)

References

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Documents Required for Government Schemes

Most government schemes require basic documents for verification. While the exact requirements vary, common documents include:

  • Aadhaar Card
  • Income Certificate
  • Caste Certificate (if applicable)
  • Residence Proof
  • Bank Account Details
  • Educational Certificates (for student schemes)

How to Apply for Government Schemes?

The application process for government schemes may be online or offline depending on the scheme. In most cases, you can follow these steps:

  1. Check eligibility criteria
  2. Collect required documents
  3. Fill the application form
  4. Submit the application online or at the relevant office
  5. Track application status