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Business & Entrepreneurship

Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Rehabilitation of Sick Enterprises

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

- Financial Reimbursement: 50% of the cost of preparing the Draft Rehabilitation Scheme is reimbursed, up to a maximum of ₹1,00,000/-.

Who can apply

The enterprise must be an MSME (Micro, Small, or Medium Enterprise).; The enterprise must satisfy the RBI guidelines for sickness.; The application must be submitted with audited balance sheets for verification.

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 "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.