Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Saving in Consumption of Energy and Water
75% energy audit + 25% equipment cost · Gujarat MSMEs energy/water savings
Gujarat MSMEs that invest in reducing their energy or water consumption can receive financial support for audit costs and for purchasing recommended energy/water-saving equipment. To qualify, the business must achieve at least a 10% reduction in consumption after implementing the audit recommendations. Apply online through the Investor Facilitation Portal (ifp.gujarat.gov.in).
About This Scheme
Gujarat MSMEs that invest in reducing their energy or water consumption can receive financial support for audit costs and for purchasing recommended energy/water-saving equipment. To qualify, the business must achieve at least a 10% reduction in consumption after implementing the audit recommendations. Apply online through the Investor Facilitation Portal (ifp.gujarat.gov.in).
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 Saving in Consumption of Energy and Water" provides financial assistance to both existing and new enterprises that take measures to reduce their energy and water consumption. The initiative encourages industries to adopt energy-efficient and water-saving practices by reimbursing audit costs and providing subsidies on recommended equipment.
Benefits
- 75% reimbursement of energy/water audit cost, up to ₹50,000 per audit type (one-time during scheme period)
- 25% subsidy on equipment recommended by the auditor, up to ₹20 lakh (one-time)
💡 Why Startups Should Care
For any manufacturing MSME, energy and water are recurring costs that compound over years. This scheme funds the diagnostic (audit) and a quarter of the fix (equipment), making sustainability upgrades a low-risk investment with a fast payback period.
Who Can Apply (Eligibility)
- Must be an existing or new Micro, Small, or Medium enterprise (MSME)
- Must conduct an energy or water audit from a recognized institution or consultant
- Must achieve at least 10% reduction in energy or water consumption after implementing audit recommendations
- Must install equipment as recommended by the auditing authority
- Enterprises where consumption has increased due to production growth will be reviewed separately
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Energy & Water Saving component.
- Get an energy/water audit conducted by a recognized institution/consultant.
- Upload the audit report, CA certificate for fixed capital investment, and equipment invoices.
- Submit the application for reimbursement of audit and equipment costs.
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 Saving in Consumption of Energy and Water"?
The component "Assistance for Saving in Consumption of Energy and Water" provides financial assistance to both existing and new enterprises that take measures to reduce their energy and water consumption.
Who is eligible to apply for this scheme?
Any existing or new enterprise that conducts an energy/water audit through a recognized institution and achieves at least a 10% reduction in consumption is eligible to apply.
What is the maximum financial assistance provided under this scheme?
The scheme provides reimbursement of 75% of the audit cost, up to a maximum of [?]50,000/-, and a subsidy of 25% on the cost of recommended equipment, up to [?]20,00,000/-.
Can a newly established enterprise apply for this scheme?
Yes, a newly established enterprise can apply if it undertakes measures to reduce energy or water consumption and meets the eligibility criteria.
What happens if an enterprise fails to achieve the required 10% reduction in consumption?
If an enterprise does not achieve at least a 10% reduction in energy or water consumption, it will not be eligible for assistance on the cost of equipment.
Can an enterprise apply if its energy or water consumption increases due to higher production?
Yes, if consumption increases due to production growth, the claim will be reviewed separately by a committee constituted by SLEC.
What type of institutions or consultants can conduct the energy/water audit?
The audit must be conducted by a recognized institution or consultant approved by the relevant authorities.
How will the reimbursement and subsidy be disbursed to the enterprise?
The approved financial assistance will be directly transferred to the registered bank account of the enterprise.
Can an enterprise conduct an audit before registration and still be eligible for assistance?
No, the enterprise must be legally registered before conducting an audit to be eligible for assistance under this scheme.
Is GST registration mandatory to apply for this scheme?
Yes, GST registration is mandatory for enterprises to avail of financial assistance under this scheme.
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
- Copy of self-certified shareholding pattern
- CA certificate for fixed capital investment
- Certified copy of latest balance sheet/audit report