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Business & Entrepreneurship

Aatmanirbhar Gujarat Scheme for assistance to MSMEs: Assistance for Interest Subsidy to Micro, Small and Medium Enterprise (Manufacturing Sector)

The "Aatmanirbhar Gujarat Scheme for assistance to MSMEs" aims to empower the state's dynamic MSME sector, which significantly contributes to employment, GDP, and exports.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Financial Assistance | Category of Taluka Quantum of Incentive Category 17% on Term Loan with a maximum amount of ₹35,00,000/- per annum for a period of 7 yearsCategory 2 6% on Term Loan with a maximum amount of ₹30,00,000/- per annum for a period of 6 years Category 3 & Municipal Corporation Areas5% on Term Loan with a maximum amount of ₹25,00,000/- per annum for a period of 5 years

Who can apply

The firm must be a Micro/Small/Medium enterprise.; The enterprise must have obtained acknowledgment or registration from the Ministry of MSME or the Department for Promotion of Industry and Internal Trade (DPIIT), as applicable.; New enterprises or existing enterprises undertaking expansion or diversification are eligible.; The enterprise must commence commercial production or rendering services during the scheme's operative period.; The enterprise must submit an application online within one year of the first loan disbursement, commencement of commercial production/services, or GR issue date, whichever is later.; Applications must be submitted before the scheme's last operative date.; The enterprise must pay regular installments and interest to the bank/financial institution.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs"?

The "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs" is a state initiative designed to support and strengthen the MSME sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.

When is the scheme operative?

The scheme is operative from October 5, 2022, to October 4, 2027, covering a period of five years.

What are the objectives of the scheme?

The scheme aims to boost MSME growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.

What are some initiatives included in the scheme?

The scheme includes the establishment of new industrial estates, sector-specific parks, and infrastructure projects, along with amendments to the Gujarat Industrial Policy 2020 to further support MSME growth.

Who is eligible to benefit from the scheme?

MSMEs established and operating within Gujarat are eligible to benefit from the scheme, as per the criteria defined in the policy framework.

How is the incentive amount calculated?

The incentive is calculated based on the lower of the Gross Fixed Capital Investment (GFCI) made in the project or the cost appraised by a bank or financial institution.

What is the incentive rate for enterprises in Category 1 areas?

Enterprises in Category 1 areas can receive 7% of the term loan amount, with a maximum of [?]35,00,000/- per annum, for a period of 7 years.

What is the incentive rate for enterprises in Category 2 areas?

Enterprises in Category 2 areas can receive 6% of the term loan amount, with a maximum of [?]30,00,000 per annum, for a period of 6 years.

What is the incentive rate for enterprises in Category 3 and municipal corporation areas?

Enterprises in Category 3 and municipal corporation areas can receive 5% of the term loan amount, with a maximum of [?]25,00,000/- per annum, for a period of 5 years.

What happens if the GFCI exceeds the cost appraised by the bank or financial institution?

In such cases, the lower of the two amounts will be considered for calculating the incentive.

What types of projects are covered under this scheme?

Both new projects and expansion/diversification projects in the manufacturing or services sector are eligible, provided they meet the eligibility criteria.

Can an enterprise in a municipal corporation area receive benefits under this scheme?

Yes, enterprises in municipal corporation areas are eligible for incentives at 5% of the term loan amount, with a maximum of [?]25,00,000/- per annum for 5 years.

What is the additional interest subsidy available for differently-abled entrepreneurs, women entrepreneurs, and registered startups?

Differently-abled entrepreneurs, women entrepreneurs, and registered startups in the manufacturing sector are eligible for an additional 1% interest subsidy on their term loan.

Is there an additional benefit for young entrepreneurs?

Yes, young entrepreneurs below the age of 35 years on the date of sanction of the term loan are eligible for an additional 1% interest subsidy.

What is the minimum interest rate that an eligible enterprise must bear?

An eligible enterprise must bear a minimum of 2% interest on the term loan, regardless of the subsidies availed.

Can an existing enterprise install renewable power plants and receive interest subsidies?

Yes, existing enterprises installing new solar power plants or other renewable power plants for captive consumption on their premises are eligible for interest subsidies based on the enterprise's location.

Can an enterprise avail the renewable power subsidy more than once?

No, the incentive for renewable power installations is available only once. Enterprises that have availed this subsidy under a previous scheme are not eligible under the current scheme.

Are startups eligible for both the 1% additional interest subsidy and the general interest subsidy?

Yes, registered startups in the manufacturing sector can avail both the general interest subsidy and the additional 1% subsidy.