Aatmanirbhar Gujarat Scheme for assistance to MSMEs: Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Manufacturing Sector)
6–7% interest subsidy up to ₹35L/year · MSME manufacturing sector · Gujarat 7 years
Aatmanirbhar Gujarat Scheme gives manufacturing MSMEs in Gujarat an interest subsidy on term loans — up to 7% subsidy for up to 7 years in priority talukas. The benefit depends on where your factory is located.
About This Scheme
Aatmanirbhar Gujarat Scheme gives manufacturing MSMEs in Gujarat an interest subsidy on term loans — up to 7% subsidy for up to 7 years in priority talukas. The benefit depends on where your factory is located.
Full official description
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 (Manufacturing Sector)" provides an interest subsidy on the term loan to support micro-enterprises in manufacturing.
Benefits
Interest subsidy on term loans (manufacturing MSMEs):
| Taluka Category | Subsidy Rate | Max per year | Duration |
|---|---|---|---|
| Category 1 | 7% | ₹35,00,000 | 7 years |
| Category 2 | 6% | ₹30,00,000 | 6 years |
| Category 3 | 5% | ₹25,00,000 | 5 years |
| Municipal Corp areas | 5% | ₹25,00,000 | 5 years |
💡 Why Startups Should Care
For a Gujarat manufacturing MSME with a ₹5 crore term loan in a Category 1 taluka, a 7% interest subsidy translates to ₹35 lakh back per year for 7 years — a total of ₹2.45 crore over the scheme period. This makes expanding production capacity significantly cheaper than anywhere else in India.
Who Can Apply (Eligibility)
Micro, Small, or Medium manufacturing enterprise registered with MSME/Udyam in Gujarat, with commercial production commenced after the scheme's eligibility date.
Exclusions
- Available only to registered manufacturing MSMEs in Gujarat
- Incentive rates vary by taluka category (Category 1: 7% up to ₹35L/year for 7 years; Category 2: 6%; Category 3 & Municipal Areas: lower rates)
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and click "New Investor Registration".
- Complete registration and log in to the Investor Facilitation Portal (IFP).
- Select the Aatmanirbhar Gujarat MSME scheme — Interest Subsidy (Manufacturing Sector).
- Fill in enterprise details, investment details, and banking information.
- Upload the printed application form (signed and stamped), Udyam/IEM/LOI certificate, CA certificate for fixed capital investment, and other required documents.
- Submit and note your Reference Number.
- Incentive is processed on a reimbursement basis after verification.
Frequently Asked Questions
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.
How is the incentive amount calculated?
The incentive is calculated based on the lower of the Gross Fixed Capital Investment (GFCI) made in the project or the cost appraised by a bank or financial institution.
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 happens if the GFCI exceeds the cost appraised by the bank or financial institution?
In such cases, the lower of the two amounts will be considered for calculating the incentive.
What types of projects are covered under this scheme?
Both new projects and expansion/diversification projects in the manufacturing or services sector are eligible, provided they meet the eligibility criteria.
Can an enterprise in a municipal corporation area receive benefits under this scheme?
Yes, enterprises in municipal corporation areas are eligible for incentives at 5% of the term loan amount, with a maximum of [?]25,00,000/- per annum for 5 years.
What is the additional interest subsidy available for differently-abled entrepreneurs, women entrepreneurs, and registered startups?
Differently-abled entrepreneurs, women entrepreneurs, and registered startups in the manufacturing sector are eligible for an additional 1% interest subsidy on their term loan.
Is there an additional benefit for young entrepreneurs?
Yes, young entrepreneurs below the age of 35 years on the date of sanction of the term loan are eligible for an additional 1% interest subsidy.
What is the minimum interest rate that an eligible enterprise must bear?
An eligible enterprise must bear a minimum of 2% interest on the term loan, regardless of the subsidies availed.
Can an existing enterprise install renewable power plants and receive interest subsidies?
Yes, existing enterprises installing new solar power plants or other renewable power plants for captive consumption on their premises are eligible for interest subsidies based on the enterprise's location.
Can an enterprise avail the renewable power subsidy more than once?
No, the incentive for renewable power installations is available only once. Enterprises that have availed this subsidy under a previous scheme are not eligible under the current scheme.
Are startups eligible for both the 1% additional interest subsidy and the general interest subsidy?
Yes, registered startups in the manufacturing sector can avail both the general interest subsidy and the additional 1% subsidy.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Printed application form with declaration (signed by authorised person with designation and stamp)
- Udyam registration / IEM / LOI certificate
- CA certificate for fixed capital investment
- Copy of term loan sanction letter
- Bank statement / loan repayment schedule
- Constitution of enterprise (MOA, partnership deed)
- PAN card of enterprise and promoters