Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance of Capital Investment Subsidy
Capital subsidy 30%+ of term loan up to ₹40 lakh+ · SC/ST enterprises Gujarat
Dr. Babasaheb Ambedkar Udyog Uday Yojana gives SC/ST-owned manufacturing MSMEs in Gujarat a capital investment subsidy of 30% of the term loan amount (up to ₹40 lakh) in Category 1 talukas — a direct cash subsidy on top of the loan.
About This Scheme
Dr. Babasaheb Ambedkar Udyog Uday Yojana gives SC/ST-owned manufacturing MSMEs in Gujarat a capital investment subsidy of 30% of the term loan amount (up to ₹40 lakh) in Category 1 talukas — a direct cash subsidy on top of the loan.
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 of Capital Investment Subsidy to Micro enterprises" provides a capital investment subsidy to support micro-enterprises in manufacturing.
Benefits
Capital Investment Subsidy (SC/ST manufacturing MSMEs):
| Taluka Category | Subsidy | Maximum |
|---|---|---|
| Category 1 | 30% of term loan | ₹40,00,000 |
| Category 2 | 25% of term loan | ₹35,00,000 |
| Category 3 | 15% of term loan | ₹15,00,000 |
Extra ₹10 lakh if Fixed Capital Investment > ₹10 crore (Category 1).
💡 Why Startups Should Care
At 30% of term loan value (with an extra ₹10 lakh bonus for investments over ₹10 crore), this is one of Gujarat's most generous capital subsidies — specifically reserved for SC/ST entrepreneurs. It directly reduces your effective project cost, improving your debt-to-equity position from day one.
Who Can Apply (Eligibility)
SC/ST-owned manufacturing MSME in Gujarat. Apply online within 1 year of commencement of commercial production.
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Capital Investment Subsidy component.
- Fill in enterprise details and term loan details.
- Upload the signed application form, Udyog Aadhaar/Udyam certificate, and supporting financial documents.
- Submit and note your Reference Number for tracking.
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 of Capital Investment Subsidy"?
The component "Assistance of Capital Investment Subsidy" provides financial assistance to eligible SC/ST entrepreneurs to support their capital investment and encourage industrial growth.
Who is eligible to apply for the subsidy?
Any SC/ST entrepreneur that has availed a term loan and commenced commercial production within the specified time frame is eligible to apply, provided all other conditions are met.
What happens if an enterprise applies after the one-year deadline?
If an enterprise applies after one year from the first loan disbursement, its application will not be considered for the subsidy.
Can an enterprise receive the subsidy before starting commercial production?
No, the subsidy will only be disbursed after the enterprise begins commercial production.
Can an enterprise avail of subsidies from both the Central and State Governments?
Yes, an enterprise can receive subsidies from both the Central and State Governments; however, the total subsidy amount cannot exceed the total loan amount disbursed by the bank or financial institution.
How is the subsidy amount determined?
The subsidy amount is determined based on the approved guidelines, the amount of the term loan, and other relevant factors set by the government.
What happens if an enterprise does not start commercial production?
If an enterprise does not commence commercial production, it will not be eligible to receive the subsidy.
What is the maximum capital investment subsidy an enterprise can receive?
An enterprise can receive a subsidy of up to [?]40,00,000/- under Category 1 Taluka, [?]35,00,000/- under Category 2 Taluka, and [?]15,00,000/- under Category 3 (Municipal Corporation areas), based on the percentage of the term loan amount.
Is there any additional subsidy for enterprises with a Fixed Capital Investment (FCI) above ₹10 crores?
Yes, enterprises with an eligible FCI above [?]10,00,00,000/- receive an additional subsidy:
[?]10,00,000/- in Category 1 Taluka [?]7,50,000/- in Category 2 Taluka [?]5,00,000/- in Category 3 (Municipal Corporation Areas)
How is the Fixed Capital Investment (FCI) calculated?
The Fixed Capital Investment includes the cost of land, building, plant, machinery, and other fixed assets required for business operations.
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 stamp)
- Copy of acknowledgment of Udyog Aadhaar / Udyam registration
- Term loan sanction letter
- CA certificate for fixed capital investment
- Constitution of enterprise