Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Technology Acquisition
70% technology acquisition cost up to ₹50 lakh · SC/ST MSMEs Gujarat
Dr. Babasaheb Ambedkar Udyog Uday Yojana reimburses 70% of technology acquisition costs (up to ₹50 lakh) for SC/ST-owned MSMEs in Gujarat — covering technology transfer fees and royalty payments to help them upgrade manufacturing or processes.
About This Scheme
Dr. Babasaheb Ambedkar Udyog Uday Yojana reimburses 70% of technology acquisition costs (up to ₹50 lakh) for SC/ST-owned MSMEs in Gujarat — covering technology transfer fees and royalty payments to help them upgrade manufacturing or processes.
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 Technology Acquisition" supports enterprises in acquiring appropriate technology for their product or process, covering up to 70% of the cost including royalty payments for the first 2 years.
Benefits
- Reimbursement: 70% of technology acquisition cost
- Maximum: ₹50,00,000
- Covers: Technology transfer fees, royalty payments (included)
- Applies to: New and existing manufacturing/process enterprises
💡 Why Startups Should Care
At 70% — higher than the general MSME rate of 65% — this is a strong incentive for SC/ST manufacturers to license proven technology rather than reinvent it. For a ₹50 lakh technology acquisition, that's ₹35 lakh in government support.
Who Can Apply (Eligibility)
SC/ST-owned MSME (new or existing) in Gujarat, acquiring technology through a formal agreement for manufacturing or process improvement.
Exclusions
- Not available for purchase of plant, machinery, or equipment
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Technology Acquisition component.
- Fill in enterprise details and technology licensing details.
- Upload Udyam/IEM/LOI certificate, constitution of enterprise, power of attorney/board resolution, and technology transfer agreement.
- Submit the application for reimbursement after cost 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 primary objective of the "Assistance for Technology Acquisition" scheme-component?
The scheme-component aims to support enterprises by providing financial assistance for acquiring appropriate technology to enhance their products or processes.
Who is eligible to apply for the Assistance for Technology Acquisition scheme?
Any new or existing enterprise engaged in manufacturing or process improvement is eligible to apply for the scheme.
What percentage of the technology acquisition cost does the scheme cover?
The scheme covers 70% of the total cost of technology acquisition, subject to a maximum of [?]50 lakh.
Does the scheme provide financial assistance for royalty payments?
Yes, the scheme includes assistance for royalty payments for the first two years.
Can an enterprise use the scheme to purchase machinery or equipment?
No, the scheme does not provide assistance for the purchase of plant, machinery, or equipment.
What is the time limit for signing an MoU, agreement, or contract with a technology provider?
The enterprise must sign an MoU, agreement, or contract within one year of receiving approval.
Is prior approval from the MSME Commissionerate required before applying?
Yes, enterprises must obtain prior approval from the MSME Commissionerate before applying for the scheme.
Are service-based businesses eligible to apply for this scheme?
No, the scheme is only applicable to manufacturing and process improvement enterprises.
Can an enterprise acquire technology from a foreign company under this scheme?
Yes, the scheme allows enterprises to acquire patented technology from both Indian and foreign companies.
What happens if an enterprise fails to sign an agreement within one year?
If an enterprise fails to sign the agreement within one year, it will not be eligible for assistance under the scheme.
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 enterprise (MOA, partnership deed, etc.)
- Power of attorney / board resolution of authorised signatory
- Signed and stamped MOU or technology transfer agreement