Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Power Connection Charges
35% power connection cost reimbursement up to ₹5 lakh · Gujarat MSMEs
Gujarat MSMEs located outside GIDC industrial areas or approved industrial parks can get 35% of their electricity connection charges reimbursed — covering LT and HT service line costs paid to the distribution company. This helps small businesses outside industrial zones reduce their infrastructure setup costs. Apply through the Investor Facilitation Portal (ifp.gujarat.gov.in) within one year of paying the power connection charges.
About This Scheme
Gujarat MSMEs located outside GIDC industrial areas or approved industrial parks can get 35% of their electricity connection charges reimbursed — covering LT and HT service line costs paid to the distribution company. This helps small businesses outside industrial zones reduce their infrastructure setup costs. Apply through the Investor Facilitation Portal (ifp.gujarat.gov.in) within one year of paying the power connection charges.
Full official description
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" 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 entrepreneurs and strengthens MSMEs, making them globally competitive. The component "Assistance for Power Connection Charges" provides financial assistance to MSMEs (Micro, Small & Medium Enterprises) that are located outside GIDC (Gujarat Industrial Development Corporation) or other approved industrial parks.
Benefits
- 35% reimbursement of LT (Low Tension) or HT (High Tension) power connection charges paid to the distribution company
- Maximum reimbursement up to ₹5 lakh
💡 Why Startups Should Care
Power connection charges for a new manufacturing unit can run into lakhs depending on load requirements. At 35% reimbursement (up to ₹5 lakh), this eases one of the less glamorous but essential setup costs for any Gujarat MSME.
Who Can Apply (Eligibility)
- Must be a Micro, Small, or Medium enterprise (MSME)
- Unit must be located outside GIDC (Gujarat Industrial Development Corporation) or an approved industrial park
- Must have paid power connection charges to the electricity distribution licensee during the scheme period
- Apply within one year of making the payment
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, CA-certified balance sheet, and land documents.
- Submit the application for reimbursement after connection is established.
Frequently Asked Questions
What is the "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)"?
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" aims to position Gujarat as a global business destination by promoting sustainable manufacturing, inclusive development, and balanced regional growth.
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 for Power Connection Charges"?
The component "Assistance for Power Connection Charges" provides financial assistance to MSMEs (Micro, Small & Medium Enterprises) that are located outside GIDC (Gujarat Industrial Development Corporation) or other approved industrial parks.
Who is eligible to apply for this scheme?
Any MSME located outside GIDC or an approved industrial park that has paid power connection charges to the distribution licensee is eligible to apply.
What is the maximum financial assistance that an applicant can receive?
An eligible applicant can receive a maximum financial assistance of [?]5,00,000/- under this scheme.
Who is eligible to apply for this component?
Any registered business, startup, or institution involved in ICT-related projects is eligible to apply for the scheme.
What percentage of the power connection charges is reimbursed under this scheme?
The scheme provides reimbursement of 35% of the charges paid to the distribution licensee.
Can an existing consumer apply for assistance under this scheme?
Yes, an existing consumer can apply if they have paid for additional load (expansion) or shifting of a service line.
What is the time limit for submitting an application for reimbursement?
The applicant must submit the application within one year from the date of payment to the distribution licensee.
Are MSMEs located inside GIDC or other approved industrial parks eligible for this scheme?
No, MSMEs located within GIDC or any approved industrial park are not eligible for assistance under this scheme.
Can an MSME apply for assistance if the payment for power connection charges was made before the scheme started?
No, only payments made during the operative period of the scheme are eligible for reimbursement.
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/annual audit report (if applicable)
- CA certificate for capital investment
- Land document (NA permission or ownership proof)