Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector: Assistance of Interest Subsidy
7% interest subsidy up to 1.2% eFCI/year for 10 years · large industries & thrust sector Gujarat
Large and thrust sector industries in Gujarat that are newly set up or expanding can get a portion of their term loan interest reimbursed. The subsidy runs for 6–10 years at 7% on the term loan, with an annual cap linked to the effective Fixed Capital Investment (eFCI), varying by taluka category. Apply online via the Investor Facilitation Portal at ifp.gujarat.gov.in.
About This Scheme
Large and thrust sector industries in Gujarat that are newly set up or expanding can get a portion of their term loan interest reimbursed. The subsidy runs for 6–10 years at 7% on the term loan, with an annual cap linked to the effective Fixed Capital Investment (eFCI), varying by taluka category. Apply online via the Investor Facilitation Portal at ifp.gujarat.gov.in.
Full official description
The "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic large-industry 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 of Interest Subsidy" provides financial support to large industrial undertakings by reimbursing a portion of the interest paid on term loans. This subsidy encourages industrial growth, expansion, and diversification by reducing borrowing costs for eligible projects.
Benefits
- Interest subsidy @ 7% on term loans for 6–10 years (duration depends on taluka category)
- Category 1 talukas: subsidy up to 1% (general) or 1.2% (thrust sector) of eFCI per annum for 10 years
- Category 2 talukas: subsidy up to 1% of eFCI per annum for 8 years (general) or 10 years (thrust sector)
- Category 3 talukas: subsidy up to 1% of eFCI per annum for 6 years (general) or 8 years (thrust sector)
💡 Why Startups Should Care
Thrust-sector projects get an enhanced subsidy rate and longer duration than general large industries — a clear signal from Gujarat about which sectors it wants to grow. If your business falls in a thrust sector, this interest subsidy meaningfully lowers your cost of capital for up to a decade.
Who Can Apply (Eligibility)
- Must be a new large industrial undertaking, or an existing one undergoing expansion or diversification
- Must have DPIIT acknowledgment/registration
- Must commence commercial production within the scheme's operative period (Oct 2022 – Oct 2027)
Exclusions
- Not available if the same fixed capital investment already received an incentive under another state scheme
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Large Industries Interest Subsidy component.
- Fill in enterprise and term loan details.
- Upload bank certificates, term loan account statements, and first sale bill (with first claim only).
- Submit annually for interest subsidy reimbursement.
Frequently Asked Questions
What is the "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector"?
The "Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector" is a state initiative designed to support and strengthen the Large Industry and Thrust 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 5 years.
What are the objectives of the scheme?
The scheme aims to boost Large Industry growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.
Who is eligible to benefit from the scheme?
Large Industries established and operating within Gujarat are eligible to benefit from the scheme, as per the criteria defined in the policy framework.
What is the "Assistance of Interest Subsidy" component?
The "Assistance of Interest Subsidy" component is a financial support initiative designed to reimburse a portion of the interest paid on term loans by large industrial undertakings to encourage industrial growth, expansion, and diversification.
Who is eligible to apply for this subsidy?
Large industrial undertakings, including new projects, expansion projects, and diversification projects, are eligible to apply for this subsidy if they meet the specified criteria.
What is the percentage of interest subsidy offered under this scheme?
The scheme offers an interest subsidy of 7% on term loans for eligible projects.
What is the maximum duration for which the subsidy is provided?
The subsidy is provided for a maximum duration of 10 years, depending on the category of the project.
What is the minimum interest the applicant must bear under this scheme?
The applicant must bear a minimum of 2% of the interest levied on the term loan, even if additional subsidies are availed from the Government of India.
Can an undertaking apply for this subsidy while availing subsidies from the Government of India?
Yes, an undertaking can apply for this subsidy alongside subsidies from the Government of India, but the total benefit will ensure that at least 2% of the interest is borne by the applicant.
What happens if an industrial undertaking defaults on loan payments?
If an undertaking defaults on loan payments, it will not be eligible to receive the interest subsidy for the default period, as determined by RBI guidelines.
Are penalties or additional charges covered under this subsidy?
No, penalties or additional charges levied by the financial institution are not covered under this subsidy.
Can an applicant include loans taken from multiple financial institutions?
Yes, loans from multiple financial institutions can be included, but the date of the first disbursement of the loan will be considered as the earliest disbursement date.
How is the interest subsidy disbursed to the eligible applicants?
The interest subsidy is reimbursed periodically after verification of compliance with the scheme's guidelines and repayment terms.
What are the options for choosing the eligibility start date for the subsidy?
Applicants can choose the eligibility start date as either the date of the first loan disbursement or the date of commencement of commercial production.
Are all types of loans eligible for this scheme?
No, only term loans used for Eligible Fixed Capital Investment (eFCI) are eligible under this scheme.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Bank certificate for the claim period
- Bank/financial institute certified term loan account statement
- First sale bill (with first claim only)
- Purchase bills for eligible plant and machinery