Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance in Rent to MSEs
65% rent reimbursement up to ₹1 lakh/year for 5 years · Gujarat MSEs
Gujarat Micro and Small Enterprises that rent or lease a shed for their manufacturing operations can get 65% of their annual rent reimbursed by the state government, up to ₹1 lakh per year for a maximum of 5 years. This helps small manufacturers reduce their operating costs in the early years of business. Apply through the Investor Facilitation Portal (ifp.gujarat.gov.in).
About This Scheme
Gujarat Micro and Small Enterprises that rent or lease a shed for their manufacturing operations can get 65% of their annual rent reimbursed by the state government, up to ₹1 lakh per year for a maximum of 5 years. This helps small manufacturers reduce their operating costs in the early years of business. Apply through the Investor Facilitation Portal (ifp.gujarat.gov.in).
Full official description
The scheme "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 in Rent to MSEs" provides financial assistance to Micro and Small Enterprises (MSEs) that have acquired a rented or leased shed for manufacturing activities.
Benefits
- 65% of annual rent paid for the manufacturing shed reimbursed
- Maximum reimbursement of ₹1 lakh per year
- Assistance available for up to 5 years in total
💡 Why Startups Should Care
Rent relief compounds over time — 65% back for 5 years means a meaningful reduction in your fixed monthly overhead during the critical early growth phase, when cash flow is tightest for most MSEs.
Who Can Apply (Eligibility)
- Must be a Micro or Small Enterprise (MSE) — Medium Enterprises are not eligible
- Must be engaged in manufacturing activities
- Must have a rented or leased shed specifically for manufacturing operations
- Shed owner must have legal ownership and possession of the property
- Manufacturing unit must consume electricity or power for its production activities
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, CA certificate for fixed capital investment, and rent agreement.
- Submit the application annually for rent reimbursement.
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 in Rent to MSEs"?
The component "Assistance in Rent to MSEs" provides financial assistance to Micro and Small Enterprises (MSEs) that have acquired a rented or leased shed for manufacturing activities.
Who can apply for this assistance?
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 is reimbursed under this scheme?
The scheme provides reimbursement of 65% of the rent paid by the enterprise, subject to a maximum limit of [?]1,00,000/- per annum.
For how many years can an enterprise receive this assistance?
The assistance is available for a maximum period of 5 years.
When does the rent assistance become applicable?
The assistance is provided from the date of the rent deed or three months before the start of production, whichever is later.
Are enterprises engaged in service or trading activities eligible for this assistance?
No, only manufacturing enterprises are eligible, while service and trading businesses are not covered under the scheme.
Is it mandatory for the manufacturing unit to consume electricity or power?
Yes, the enterprise must be consuming electricity or power as part of its manufacturing activities to qualify for the assistance.
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 MSE enterprise status
- CA certificate for fixed capital investment
- Copy of self-certified shareholding pattern (if applicable)