Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance to MSEs for Shed Developed by Private Developer
35% shed cost subsidy · pay only 30% · SC/ST MSEs private-developer sheds Gujarat
This scheme supports SC/ST entrepreneurs running Micro or Small Enterprises (MSEs) in Gujarat who want to set up industrial units in private mini estates. The government covers 70% of the industrial shed cost — you pay only 30% upfront to get possession, and the developer receives the remaining assistance in two stages (35% after sale, remainder after production starts). Apply online through the Investor Facilitation Portal (ifp.gujarat.gov.in).
About This Scheme
This scheme supports SC/ST entrepreneurs running Micro or Small Enterprises (MSEs) in Gujarat who want to set up industrial units in private mini estates. The government covers 70% of the industrial shed cost — you pay only 30% upfront to get possession, and the developer receives the remaining assistance in two stages (35% after sale, remainder after production starts). Apply online through the Investor Facilitation Portal (ifp.gujarat.gov.in).
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 to MSEs for Shed Developed by Private Developer" provides SC/ST entrepreneurs for acquiring industrial sheds in mini estates developed by private developers. It encourages industrial growth by offering support for land, building, and infrastructure costs.
Benefits
- Pay only 30% of shed cost to get possession of your industrial space
- Government pays an additional 15% to the private developer on top of the total shed cost
- Government disburses 35% of the shed cost after the sale deed, and the remaining amount once production begins
- Covers costs related to land, building, and basic infrastructure of the shed
💡 Why Startups Should Care
This scheme partners with private developers to fast-track shed availability — you pay only 30% of cost, the government covers 35% directly, and developers get an extra 15% incentive to build more capacity. For SC/ST manufacturers who can't wait years for GIDC allotments, private-developer sheds are often the faster route.
Who Can Apply (Eligibility)
- Your business must be a Micro, Small, or Medium Enterprise (MSME) owned by a Scheduled Caste (SC) or Scheduled Tribe (ST) entrepreneur (51%+ stake)
- The industrial shed must be located in a government-approved mini estate developed by a private developer
- You must pay 30% of the shed cost upfront to take possession
- Trading businesses are not eligible — only manufacturing/industrial units qualify
Exclusions
- Trading activity is not eligible under the scheme
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Private Developer Shed Assistance component.
- Fill in enterprise details and shed purchase details.
- Upload MSME/Udyam registration, bank account details, proof of 30% payment, and business plan.
- Submit the application — possession follows on payment, with subsidy claims processed separately by the developer.
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.
Who is eligible to apply for this scheme?
SC/ST entrepreneurs who own a Micro or Small Enterprise (MSE) and intend to set up their business in an approved mini estate are eligible to apply.
What percentage of financial assistance is provided under this scheme?
Private developers are eligible for additional assistance of up to 15% of the total cost of the shed, in addition to the 55% assistance already provided by the government.
What components are included in the cost of the shed?
The cost of the shed includes the total cost of land, building, infrastructure facilities, stamp duty, registration charges, technical consultancy fees, and TPQA charges.
How much payment is required from the SC/ST entrepreneur to acquire the shed?
The SC/ST entrepreneur must pay 30% of the shed price to the private developer before taking possession.
When is financial assistance disbursed to the private developer?
The private developer receives 35% of the cost of the shed after the sale of the individual shed, and the remaining assistance is disbursed after the MSE begins production.
Can an entrepreneur purchase multiple sheds under this scheme?
No, a single MSE entrepreneur is allowed to purchase only one shed under this scheme.
Who qualifies as a Private Developer under this scheme?
A Private Developer can be an Industries Association, an enterprise registered under the Societies Act, Partnership Act, Trust Act, or Companies Act, or a Special Purpose Vehicle (SPV) formed for the development of a Mini Estate.
What is a Mini Estate?
A Mini Estate is an industrial estate with a total area not exceeding two hectares and constructed sheds ranging in size from 50 Sq. Mt. to 100 Sq. Mt.
What infrastructure facilities must a Private Developer provide in a Mini Estate?
The Private Developer must provide essential infrastructure facilities, including roads, stormwater drainage, domestic sewerage, streetlights, water/gas/power supply, steam/gas pipelines, and communication connectivity.
What is included in the Cost of a Shed?
The Cost of a Shed includes land cost (including stamp duty and registration charges), building costs, infrastructure facilities, technical consultancy fees, and TPQA charges, as per the prevailing government guidelines.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Business registration documents (MSME/Udyam registration)
- Bank account details
- Proof of payment (30% of allotment price)
- Business plan and proposed activities in the shed