Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries: Assistance of Interest Subsidy
7% interest subsidy up to 1.2% eFCI/year for 10 years · mega industries Gujarat
Large manufacturing companies investing ₹2,500 crore or more in Gujarat's priority sectors can claim a 7% interest subsidy on their term loans for 10 years. The annual reimbursement is capped at 1.2% of eligible fixed capital investment. Apply online through the Gujarat Investor Facilitation Portal at ifp.gujarat.gov.in.
About This Scheme
Large manufacturing companies investing ₹2,500 crore or more in Gujarat's priority sectors can claim a 7% interest subsidy on their term loans for 10 years. The annual reimbursement is capped at 1.2% of eligible fixed capital investment. Apply online through the Gujarat Investor Facilitation Portal at ifp.gujarat.gov.in.
Full official description
The "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state's dynamic mega-industry sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2032, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat." The component "Assistance of Interest Subsidy" offers a fixed quantum of interest subsidy for new industrial setups or expansion projects, facilitating industrial investments and encouraging economic development.
Benefits
- 7% interest subsidy on term loans taken for fixed capital investment
- Maximum annual benefit capped at 1.2% of eligible fixed capital investment
- Subsidy available for 10 years from commencement of commercial production
💡 Why Startups Should Care
For genuinely large-scale manufacturing investments, this scheme offers a decade-long interest subsidy — meaningful savings when your term loan runs into hundreds of crores. If you're planning a mega industrial project in Gujarat, this materially improves the project's financing economics.
Who Can Apply (Eligibility)
- Must be a manufacturing unit in one of Gujarat's defined thrust sectors (see Aatmanirbhar Gujarat policy)
- Minimum investment of ₹2,500 crore in plant and machinery
- Must create direct employment for at least 2,500 people
- Must have a term loan from a recognized financial institution for fixed capital investment
- Must continue paying at least 2% interest even after claiming this subsidy
- Applicable to new industrial units or expansion projects
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Mega Industries Interest Subsidy component.
- Fill in enterprise and term loan details.
- Upload bank certificates for the claim period, term loan account statements, and IEM Part-B/IL/LOP documents.
- Submit annually for interest subsidy reimbursement.
Frequently Asked Questions
What is the "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries"?
The "Aatmanirbhar Gujarat Scheme for Assistance to Mega Industries" is a state initiative designed to support and strengthen the Mega Industry 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, 2032, covering a period of 10 years.
What are the objectives of the scheme?
The scheme aims to boost Mega 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?
Mega 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 purpose of the "Assistance of Interest Subsidy" component?
The component aims to reduce the financial burden on industrial units by subsidizing a portion of the interest on term loans for fixed capital investments.
Who is eligible for this scheme?
New industrial units and expansion projects availing term loans for fixed capital investment are eligible.
What is the interest subsidy rate?
The interest subsidy is @7%, subject to a maximum of 1.2% of the eligible fixed capital investment per annum.
How long is the subsidy provided?
The subsidy is provided for up to 10 years.
What is the minimum investment required to qualify for the scheme?
The manufacturing unit must have an investment of at least INR 2,500 crore in plant and machinery.
How many jobs must a unit create to be eligible?
The unit must directly employ at least 2,500 persons to qualify for the subsidy.
What sectors are eligible under the scheme?
The unit must belong to one of the thrust sectors defined in the state's industrial policy.
Can units apply for the subsidy before commercial production starts?
No, the subsidy is disbursed only after the commencement of commercial production.
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
- IEM Part-B / IL / LOP of industrial undertaking
- Constitution of enterprise