MSME Policy 2020

Scheme for assistance to MSME

“Industries & Mines Department Government of Gujarat”

Benefits available to:-

New Unit
Expansion

Definitions:-

New Enterprise: New enterprise means msme commences commercial production during the operative period of this scheme. (Having valid udhyam registration )
Expansion: "50% Increase in investment in gross fixed capital (Out of that at least 60% of investment is made in plant & machinery for which expansion is carried out ) "
Gross Fixed Capital: Means and includes Building, Plant & Machinery, Electrifications, Tools & Equipment, Accessories and Utilities ( Excluding Land )

NO.1: Capital Investment Subsidy

Only For Manufacturing Unit

CATEGORY OF TALUKA	% OF TERM LOAN	MAXIMUM
CATEGORY 1	25%	35 LAKH
CATEGORY 2	20%	30 LAKH
CATEGORY 3 & MUNICIPAL CORPORATION AREAS	10%	10 LAKH

Enterprise will not eligible for this assistance, if loan is sanctioned after one year from date of commencement of production

if unit availed any benefit under central scheme then total quantum of capital subsidy from state & central shall not exceed total loan amount disbursed by f.i.

NO.2: Interest Subsidy

For Manufacturing Unit and New Service Enterprise

CATEGORY OF TALUKA	% ON TERM LOAN	MAXIMUM	PERIOD
CATEGORY 1	7%	35 LAKH P.A.	7 YEAR
CATEGORY 2	6%	30 LAKH P.A.	6 YEAR
CATEGORY 3 & MUNICIPAL CORPORATION AREAS	5%	25 LAKH P.A.	5 YEAR

ADDITIONAL 1% INTEREST SUBSIDY TO SPECIFIED ENTERPRISE

Conditions:-

Only New MSMEs of Service Sector listed in Annexure-A and B will be eligible .
Service Enterprise must have GST Registration.
Service Enterprise shall have to give permanent employment to minimum 10(ten) persons.
Penal Interest/Other charges not consider as interest for availment of Subsidy.

When to apply

“Within one year from the date of first disbursement of term loan or date of commencement of commercial production, whichever is later.”

Plant & Machinery

New plant & machinery is eligible. Imported Second hand machinery would be eligible for assistance.

Location of Machinery

Anywhere in Gujarat

Qualified lending institution

Term loan from financial insitution / bank (Except NBFC) for acquisition of GFCI of enterprise.

Disbursement

Term Loan should not be disbursed after one year from Date of Commencement of Commercial Production.

Production date

During the operative period of scheme.

Machinery life as Commercial Production

The beneficiary unit will have to remain in commercial production for Seven years after installation of plant & machinery.

Benefits under other scheme:-

lnterest Subsidy will be in addition to any other incentives available under any other scheme of Govemment of lndia. However, total lnterest Subsidy from State and Centre should not exceed the actual interest paid by the enterprise.

Where subsidy be credited/Kept

Subsidy amount will be directly credited in account of beneficiary.

OTHER INCENTIVE SCHEME

Assistance of Quality Certification
Financial Support to MSMEs in ZED Certification
Assistance in implementation of information and communication technology ( ICT )
Assistance for Technology Acquisition
Assistance for Patent Registration
Assistance for saving in consumption of energy and water
Assistance for raising capital through SME Exchange
Assistance for reimbursement of CGTMSE fee
Rehabilitation of sick enterprises
Assistance for power connection charges
Assistance in rent to MSEs