Scheme of Assistance for Common Environment Infrastructure: Common Boiler Project by SPV Constituted by Minimum 10 MSMEs
35–50% common boiler project cost up to ₹2 crore · MSME clusters Gujarat
MSMEs that use steam in their manufacturing process can jointly set up a shared, energy-efficient boiler through a Special Purpose Vehicle (SPV) and receive 35–50% subsidy on the project cost. At least 10 MSMEs must form the SPV together, and the new boiler must be certified as energy-efficient. Apply offline by submitting a Detailed Project Report to the Industries Commissionerate, Gandhinagar.
About This Scheme
MSMEs that use steam in their manufacturing process can jointly set up a shared, energy-efficient boiler through a Special Purpose Vehicle (SPV) and receive 35–50% subsidy on the project cost. At least 10 MSMEs must form the SPV together, and the new boiler must be certified as energy-efficient. Apply offline by submitting a Detailed Project Report to the Industries Commissionerate, Gandhinagar.
Full official description
The scheme "Scheme of Assistance for Common Environment Infrastructure" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Industrial Policy. Effective from August 7th, 2020 to August 6th, 2025, it aims to boost industrial growth through financial assistance, modern technologies, and enhanced facilities for industrial parks and clusters. The component “Common Boiler Project by SPV Constituted by Minimum 10 MSME’s” aims to promote energy efficiency and cost reduction in MSMEs by setting up a Common Boiler Project. A Special Purpose Vehicle (SPV) consisting of at least 10 MSMEs using steam in their process can apply. The project encourages the use of energy-efficient boilers that consume less fuel while maintaining energy output.
Benefits
- 35% subsidy on project cost for solid fuel boilers, capped at ₹2 crore
- 50% subsidy on project cost for cleaner fuel boilers (CNG, PNG, biofuel, etc.), capped at ₹2 crore
💡 Why Startups Should Care
Shared boiler infrastructure across a cluster of MSMEs cuts individual energy costs dramatically compared to standalone units. With cleaner-fuel boilers getting 50% funding, this scheme rewards both cost efficiency and environmental compliance simultaneously.
Who Can Apply (Eligibility)
- At least 10 MSMEs that currently use steam in their operations must form an SPV together
- Each MSME in the SPV must already have an independent boiler on their premises
- The new shared boiler must be certified as energy-efficient by the Office of the Boiler Inspector
- All statutory permissions for operating the boiler and distributing steam must be obtained before applying
How to Apply
- Prepare a Detailed Project Report (DPR) for the common boiler project.
- Fill out the prescribed application form (available at ic.gujarat.gov.in).
- Attach legal status documents (MOA/AOA, registration certificate, list of directors).
- Form the SPV with a minimum of 10 participating MSMEs.
- Submit for review and phased fund disbursement.
Frequently Asked Questions
What is the objective of the "Scheme of Assistance for Common Environment Infrastructure"?
The scheme "Scheme of Assistance for Common Environment Infrastructure" under the Gujarat Industrial Policy aims to provide incentives for environmental compliance to ensure long-term economic and ecological balance.
What is the purpose of the "Common Boiler Project by SPV Constituted by Minimum 10 MSME’s" component?
The objective of the component is to promote energy efficiency and cost reduction by encouraging MSMEs to use a common boiler instead of maintaining individual boilers.
Who is eligible to apply for this scheme?
The scheme is open to an SPV consisting of a minimum of 10 MSMEs that use steam in their manufacturing process and currently have independent boilers.
What type of financial assistance is provided under this scheme?
The scheme provides financial assistance of 35% of the project cost (up to [?]2 crore) if solid fuel is used, and 50% of the project cost (up to [?]2 crore) if cleaner fuels like CNG, PNG, or biofuel are used.
Can an individual MSME apply for this scheme?
No, an individual MSME cannot apply. Only an SPV with at least 10 MSMEs using steam in their processes is eligible.
What kind of boiler is eligible for financial assistance?
Only energy-efficient boilers certified by the Office of the Boiler Inspector are eligible under the scheme.
Are statutory approvals required before applying for the scheme?
Yes, all necessary statutory approvals for the operation of the boiler and distribution pipeline must be obtained before submitting the application.
Can an existing boiler be replaced or upgraded under this scheme?
No, the scheme supports only the installation of a new common boiler for the SPV, not the replacement or upgradation of existing boilers.
How is the financial assistance disbursed?
The financial assistance is disbursed after the project is approved, implemented, and verified by the concerned authority.
Can an MSME be part of multiple SPVs under this scheme?
No, an MSME can be a member of only one SPV under this scheme.
What happens if the project cost exceeds the subsidy limit?
If the project cost exceeds the maximum assistance limit, the additional cost must be borne by the SPV and participating MSMEs.
Is land or space allocation necessary for installing the common boiler?
Yes, the SPV must allocate sufficient land or space for the installation of the common boiler and obtain the necessary permissions.
Are MSMEs that have already received assistance for a boiler eligible to apply?
No, MSMEs that have already received financial assistance for a boiler under another scheme are not eligible to apply for this scheme.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Copy of legal status of applicant (MOA/AOA, company registration, or society/trust act registration)
- List of directors/members
- Detailed Project Report for the boiler project