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Business & Entrepreneurship

Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance of Capital Investment Subsidy

The scheme "Dr.Babasaheb Ambedkar Udyog Uday Yojana" aims to support SC/ST entrepreneurs and strengthen MSMEs, making them globally competitive.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Financial Assistance: | Category of TalukaQuantum of Incentive Category 130% of term loan amount upto ₹40,00,000/-; If the Eligible FCI is over 10,00,00,000/-, additional 10,00,000/- will be given.Category 225% of term loan amount upto ₹35,00,000/-; If the Eligible FCI is over 10,00,00,000/-, additional 7,50,000/- will be given.Category 3 & Municipal Corporation Areas15% of term loan amount upto ₹15,00,000/-; If the Eligible FCI is over 10,00,00,000/-, additional 5,00,000/- will be given.

Who can apply

The firm must be a Micro/Small/Medium enterprise run by SC/ST entrepreneur.; The enterprise must be a manufacturing enterprise.; Applications must be submitted online within one (1) year of the first loan disbursement date, the date of commercial production commencement, or the GR issue date, whichever is later, and before the scheme's last operative date.; The term loan should be sanctioned before the commencement of commercial production.; The enterprise must have started commercial production to avail of the subsidy.; If availing of a Central Government subsidy, the combined subsidy from the State and Central Governments should not exceed the total loan amount disbursed.; SC/ST Enterprise: SC/ST Enterprise means the enterprise in which contribution of SC/ST entrepreneur is 51% or more.

Required Paperwork

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

Common Questions

What is the "Dr. Babasaheb Ambedkar Udyog Uday Yojana"?

It is a special scheme introduced under the Industrial Policy 2020 to provide financial assistance and support to Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs in the MSME sector.

What sectors are prioritized under the Industrial Policy 2020?

The policy prioritizes industries such as Auto and Auto Components, Chemicals and Petrochemicals, Pharmaceuticals, Cement, Textiles, Engineering, Gems and Jewellery, and Ceramics.

How does the scheme promote export competitiveness?

The scheme emphasizes "Vocal for Local to become Global," strengthening integrated value chains and encouraging MSMEs to enhance their export potential.

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 of Capital Investment Subsidy"?

The component "Assistance of Capital Investment Subsidy" provides financial assistance to eligible SC/ST entrepreneurs to support their capital investment and encourage industrial growth.

Who is eligible to apply for the subsidy?

Any SC/ST entrepreneur that has availed a term loan and commenced commercial production within the specified time frame is eligible to apply, provided all other conditions are met.

What happens if an enterprise applies after the one-year deadline?

If an enterprise applies after one year from the first loan disbursement, its application will not be considered for the subsidy.

Can an enterprise receive the subsidy before starting commercial production?

No, the subsidy will only be disbursed after the enterprise begins commercial production.

Can an enterprise avail of subsidies from both the Central and State Governments?

Yes, an enterprise can receive subsidies from both the Central and State Governments; however, the total subsidy amount cannot exceed the total loan amount disbursed by the bank or financial institution.

How is the subsidy amount determined?

The subsidy amount is determined based on the approved guidelines, the amount of the term loan, and other relevant factors set by the government.

What happens if an enterprise does not start commercial production?

If an enterprise does not commence commercial production, it will not be eligible to receive the subsidy.

What is the maximum capital investment subsidy an enterprise can receive?

An enterprise can receive a subsidy of up to [?]40,00,000/- under Category 1 Taluka, [?]35,00,000/- under Category 2 Taluka, and [?]15,00,000/- under Category 3 (Municipal Corporation areas), based on the percentage of the term loan amount.

Is there any additional subsidy for enterprises with a Fixed Capital Investment (FCI) above ₹10 crores?

Yes, enterprises with an eligible FCI above [?]10,00,00,000/- receive an additional subsidy: | [?]10,00,000/- in Category 1 Taluka | [?]7,50,000/- in Category 2 Taluka | [?]5,00,000/- in Category 3 (Municipal Corporation Areas)

How is the Fixed Capital Investment (FCI) calculated?

The Fixed Capital Investment includes the cost of land, building, plant, machinery, and other fixed assets required for business operations.