Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Rehabilitation of Sick Enterprises
50% rehabilitation plan cost up to ₹1 lakh · sick MSEs Gujarat
Gujarat-based MSMEs that are officially classified as "sick" enterprises under RBI criteria can get financial help to prepare a recovery plan. The scheme reimburses 50% of the cost of drafting a rehabilitation scheme, up to ₹1,00,000. Apply online through the Investor Facilitation Portal at ifp.gujarat.gov.in.
About This Scheme
Gujarat-based MSMEs that are officially classified as "sick" enterprises under RBI criteria can get financial help to prepare a recovery plan. The scheme reimburses 50% of the cost of drafting a rehabilitation scheme, up to ₹1,00,000. Apply online through the Investor Facilitation Portal at 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 "Rehabilitation of Sick Enterprises" aims to support MSME sick industrial enterprises that meet the RBI's criteria for sickness.
Benefits
- 50% reimbursement of the cost to prepare a Draft Rehabilitation Scheme
- Maximum reimbursement of ₹1,00,000 per enterprise
💡 Why Startups Should Care
For a struggling MSE facing NPA classification, a well-prepared rehabilitation plan is often the deciding factor in whether a bank restructures the loan or forecloses. This subsidy makes expert help affordable at the moment it matters most.
Who Can Apply (Eligibility)
- Must be a Micro, Small, or Medium Enterprise (MSME)
- The enterprise must meet RBI guidelines for classification as a "sick unit"
- Must submit audited balance sheets with the application for verification
How to Apply
- Visit ifp.gujarat.gov.in/DIGIGOV/ and register as a new investor.
- Log in and select the Rehabilitation of Sick Enterprises component.
- Fill in enterprise details in the prescribed application format.
- Upload constitution of enterprise (partnership deed/AOA/MOA), EM Part II registration, and the Draft Rehabilitation Scheme.
- Submit the application for reimbursement after document verification.
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 "Rehabilitation of Sick Enterprises"?
The component "Rehabilitation of Sick Enterprises" is designed to identify and support MSME sick industrial enterprises that meet the RBI's criteria for sickness. It provides recognition of sick status and partial reimbursement for diagnostic report preparation.
Who is eligible to apply for the scheme?
Any MSME industrial enterprise that meets the RBI's criteria for sickness and has audited financial records proving its financial distress is eligible to apply.
What benefits does the scheme provide?
The scheme provides recognition as a sick enterprise and offers financial assistance of up to 50% of the cost of a diagnostic report, with a maximum limit of [?]1 lakh.
Does receiving sick enterprise registration guarantee financial assistance from the government?
No, the registration only certifies that the enterprise is sick according to RBI guidelines. Financial assistance, if any, must be sought from banks or financial institutions based on their prevailing policies.
How does an enterprise prove that it qualifies as sick?
An enterprise must submit audited balance sheets and financial statements demonstrating that it meets the RBI's criteria for sickness.
Can a newly established enterprise apply for sick enterprise registration?
No, only enterprises with financial records proving sustained financial distress over time are eligible for registration.
Are service-based MSMEs eligible for the scheme?
No, the scheme is specifically designed for industrial MSMEs and does not cover service-based enterprises.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Application form in prescribed format
- Copy of constitution of enterprise (partnership deed / Article of Association / Memorandum of Association)
- ROC certificate
- Copy of EM Part II registration
- Draft Rehabilitation Scheme document