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Business & Entrepreneurship

Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Saving in Consumption of Energy and Water

The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" launched by the Industries and Mines Department aims to position Gujarat as a global business hub, promoting sustainable manufacturing, MSME growth, and export competitiveness.

Authority

State/ UT

Region

Gujarat

Status

Verified 2026

Updated

March 2026

What you get

Reimbursement for Energy/Water Audit: | 75% cost of energy/water audit conducted by a recognized institution/ consultant subject to maximum ₹ 50,000/- for each will be reimbursed once during the operative period of the scheme. | Subsidy on Recommended Equipment: | 25% of the cost of equipment recommended by the Auditing authority subject to a maximum ₹20,00,000/- one time assistance will be eligible during the operative period of the scheme.

Who can apply

The applicant must be an existing or new enterprise.; The enterprise must conduct an energy/water audit from a recognized institution.; The enterprise must achieve a minimum 10% reduction in energy/water consumption after implementing audit recommendations.; The applicant must install equipment as per the recommendations of the auditing authority.; Enterprises with increased energy/water consumption due to production growth will be reviewed separately.

Required Paperwork

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

Common 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.