Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Power Connection Charges
50% power connection cost reimbursement up to ₹5 lakh · SC/ST MSMEs Gujarat
Dr. Babasaheb Ambedkar Udyog Uday Yojana reimburses 50% of power connection charges (up to ₹5 lakh) for SC/ST-owned MSMEs setting up outside GIDC estates in Gujarat — reducing the upfront cost of getting electricity to a new factory.
About This Scheme
Dr. Babasaheb Ambedkar Udyog Uday Yojana reimburses 50% of power connection charges (up to ₹5 lakh) for SC/ST-owned MSMEs setting up outside GIDC estates in Gujarat — reducing the upfront cost of getting electricity to a new factory.
Full official description
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 Power Connection Charges" provides financial assistance to Micro, Small, and Medium Enterprises (MSMEs) located outside Gujarat Industrial Development Corporation (GIDC) or approved industrial park areas. The scheme reimburses a portion of the charges paid to the distribution licensee for obtaining a new power connection, additional load, shifting of connection, or service line expansion.
Benefits
- Reimbursement: 50% of power connection charges paid to distribution licensee
- Maximum: ₹5,00,000 per enterprise
- Applies to: LT (Low Tension) and HT (High Tension) service line connections
- For units outside GIDC industrial areas only
💡 Why Startups Should Care
Getting an LT/HT power connection for a new factory or workshop is a hidden upfront cost many first-time entrepreneurs underestimate. This scheme covers half of that cost (up to ₹5 lakh), freeing up capital for machinery or working capital instead.
Who Can Apply (Eligibility)
SC/ST-owned MSME located outside GIDC industrial areas or approved industrial estates in Gujarat. Applicable on new LT or HT power connections.
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Power Connection Charges component.
- Fill in enterprise details and power connection cost details.
- Upload Udyam/IEM/LOI certificate, enterprise constitution, CA certificate, and land documents.
- Submit the application — reimbursement follows after verification.
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 purpose of the "Assistance for Power Connection Charges" component?
The purpose of the "Assistance for Power Connection Charges" component is to provide financial assistance to MSMEs for the charges paid to the distribution licensee when obtaining a new power connection, additional load, or shifting a service line.
Who is eligible to apply for assistance under this scheme?
An enterprise is eligible if it is registered as an MSME, is located outside GIDC or an approved industrial park, and has paid charges to the distribution licensee for a power connection.
What is the maximum financial assistance that can be availed under this scheme?
An eligible MSME can receive the assistance of 50% of the charges paid, with a maximum limit of [?]5,00,000/-.
What type of power connection charges are covered under this scheme?
The scheme covers charges paid for obtaining a new power connection, additional load for business expansion, and shifting of service lines.
Can an enterprise located within a GIDC area or an approved industrial park apply for this scheme?
No, only MSMEs located outside GIDC or an approved industrial park are eligible to apply.
What is the deadline for applying for reimbursement under this scheme?
The application for reimbursement must be submitted within one year from the date of payment to the distribution licensee.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Copy of Udyam / IEM / LOI registration certificate
- Constitution of the enterprise
- CA-certified balance sheet or annual audit report (if applicable)
- CA certificate for capital investment
- Land document (NA permission or ownership proof)