Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance in Rent to MSEs
70% rent reimbursement up to ₹1 lakh/year for 5 years · SC/ST micro & small enterprises
Dr. Babasaheb Ambedkar Udyog Uday Yojana reimburses 70% of annual rent paid by SC/ST-owned Micro and Small manufacturing enterprises (up to ₹1 lakh/year for 5 years) — reducing the fixed cost of renting factory or workspace.
About This Scheme
Dr. Babasaheb Ambedkar Udyog Uday Yojana reimburses 70% of annual rent paid by SC/ST-owned Micro and Small manufacturing enterprises (up to ₹1 lakh/year for 5 years) — reducing the fixed cost of renting factory or workspace.
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 in Rent to MSEs" provides financial assistance to Micro and Small Enterprises (MSEs) engaged in manufacturing activities that operate from rented or leased sheds. Under this scheme, eligible enterprises can receive reimbursement of up to 70% of their rent, with a maximum limit of ₹1,00,000/- per annum.
Benefits
- Reimbursement: 70% of annual rent paid
- Maximum: ₹1,00,000 per year
- Duration: Up to 5 years
- Total benefit: Up to ₹5,00,000 over 5 years
- For: Manufacturing MSEs renting their workspace
💡 Why Startups Should Care
Rent is often the largest fixed cost for a small manufacturing unit in its early years. Getting 70% back (up to ₹1 lakh/year for 5 years) means up to ₹5 lakh in total rent relief — significant runway extension for a bootstrapped SC/ST manufacturer.
Who Can Apply (Eligibility)
SC/ST-owned Micro or Small Enterprise in manufacturing, renting premises (outside GIDC or approved estates) in Gujarat.
Exclusions
- Available only to manufacturing enterprises — service or trading activities are not eligible
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Rent Assistance component.
- Fill in enterprise details and rented premises information.
- Upload Udyam/IEM/LOI certificate, SC/ST enterprise proof, CA certificate for fixed capital investment, and shareholding pattern.
- Submit the application annually for rent reimbursement.
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 objective of the component "Assistance in Rent to MSEs"?
The component "Assistance in Rent to MSEs" provides financial assistance to Micro and Small Enterprises (MSEs) engaged in manufacturing activities that operate from rented or leased sheds.
Who is eligible to apply for the Assistance in Rent to MSEs scheme?
Any Micro or Small Enterprise (MSE) engaged in manufacturing activities and operating from a legally rented or leased shed is eligible to apply.
What percentage of rent assistance is provided under this scheme?
The scheme provides financial assistance of up to 70% of the rent paid by the enterprise, with a maximum limit of [?]1,00,000 per year.
For how many years can an enterprise receive rent assistance?
The assistance is provided for a maximum period of five years.
Are service-based and trading businesses eligible for this scheme?
No, only manufacturing enterprises are eligible. Service-based and trading businesses are not covered under this scheme.
When does the assistance become effective?
The assistance starts from the date of the rent deed or three months before the date of production, whichever is later.
Is it necessary for the rented/leased shed to have a legal ownership certificate?
Yes, the shed's owner must have legal ownership and possession of the property to qualify for the scheme.
Does the enterprise need to consume electricity to be eligible?
Yes, the manufacturing activities must involve the consumption of electricity or power as proof of production.
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
- Supporting documents for SC/ST enterprise status
- CA certificate for fixed capital investment
- Copy of self-certified shareholding pattern (if applicable)