Incentive Scheme

Assistance to Micro, Small and Medium Enterprises MSME

Gujarat has developed itself as a manufacturing powerhouse for different sectors such as Auto and Auto Components, Chemicals and Petrochemicals, Drugs and Pharmaceuticals, Cement, Textiles, Engineering, Gems, and Jewellery and Ceramics. Under various regulatory reforms, the Government of Gujarat has established Gujarat Micro, Small, and Medium Enterprises Act 2019. The central goal of this act is to facilitate ease of doing business in the State of Gujarat for the MSME sector. Considering the contributions made by MSMEs for the economy and employment generation, The Industrial Policy 2020 includes specific interventions for the development of MSMEs.

Schemes you can avail under MSME Act 2019:

• Scheme 1: Assistance of Capital Investment Subsidy for Manufacturing Sector
• Scheme 2: Assistance for Interest Subsidy for the Manufacturing Sector
• Scheme 3: Assistance for Quality Certification
• Scheme 4: Financial Support to MSMEs in ZED Certification
• Scheme 5: Assistance in the implementation of Information and Communication Technology (ICT)
• Scheme 6: Assistance for Technology Acquisition
• Scheme 7: Assistance for Patent Registration
• Scheme 8: Assistance for Saving in Consumption of Energy and Water
• Scheme 9: Assistance for Raising Capital through SME Exchange
• Scheme 10: Assistance for reimbursement of CGTMSE fees
• Scheme 11: Rehabilitation of Sick Enterprises
• Scheme 12: Assistance for Power Connection Charges
• Scheme 13: Assistance in Rent to MSEs

Contact us for discussion on Registration/Stamp Duty Concession Scheme

Assistance to MSEs for Shed developed by Private Developer

Medium and Small Enterprises (MSEs) Sector has been evolved to be important for the Indian Economy, contributing enormously to employment generation, Low Capital Investment, Innovation, and growth of Economy. As a result of significant development in urban areas, there is a sharp increase in the costs of land and construction in our country. Therefore, MSEs having very limited financial resources, have to face difficulties establishing units in developed industrial areas. In this context, Government has introduced a Scheme of Assistance to MSEs for Shed developed by a Private Developer.

What Assistance do you get under this Scheme?

• The assistance of 55% of the total cost of land, building, other infrastructure facilities, Technical Consultancy Fees and TPQA charges up to 5 Crores
• Disbursement assistance of 30% cost of Shed after the sale of individual Shed and the remaining 25% assistance shall be disbursed to Private Developer after the commencement of the production by MSEs.
• The private developer will transfer this assistance to the allottee at the time of allotment

Assistance for Start-Ups Innovation

For the collection of inputs for the new scheme for the promotion of startups and innovation which aims to provide a further boost in promoting startups and strengthening the ecosystem in Gujarat, a task force was constituted comprising of leading stakeholders in the Gujarat Startup ecosystem. The major objective of Gujarat Industrial Policy 2020 is to encourage R&D, start Innovation, and Entrepreneurship. Hence, the new scheme “Scheme for Assistance for Startups / Innovation” is being introduced in order to support startups and innovation at different levels of a startup cycle.

Quantum of Assistance to Start-ups:

• Sustenance Allowance: Allowance of Rs 20,000 /month per startup will be provided for a period of 1 year. In case of startups having at least one-woman co-founder, Rs 25,000 /month will be provided
• Seed Support: Up to 30 Lakhs will be provided to the startups based on conditions on approval by SLEC
• Assistance to Start-Ups having a significant impact on Society: Extra support up to 10 Lakhs will be provided to startups having innovative projects which holds a strong influence on society, based on conditions on approval given by SLEC
• Pre-Series A Funding: For the startups which have just begun generating revenue till the time where its products/services get market control, will be assisted to get venture capital. Initially, to support such mid-level Pre series A funding to startups, an individual fund shall be created under
  Gujarat Venture Finance Limited (GVFL) to cater startups that have already received seed support from the government under various schemes for the promotion of startups.
• Interest Subsidy: The startups approved under this scheme are eligible to get an additional interest subsidy of 1% to 9% on term loans under the provision of the scheme for assistance to MSMEs
• Assistance for Acceleration Program: Allowance up to 3 Lakhs will be provided to enroll and participate in the National / International acceleration program
• Assistance for Skill Development: Financial assistance of up to 1 Lakh shall be provided to each approved startup enrolled in skill development training programs for managerial skills, financial skills, marketing skills, etc.
• Mentoring Assistance: Up to 1 Lakh mentoring assistance shall be provided for each approved startup to Nodal Institution for mentoring service. (Up to 15 Lakhs /Annum per Institute)

Capital Subsidy to Large Industries and Thrust Sector

In order to provide incentives to attract maximum investments to the state in the manufacturing sector to create more employment opportunities, for balanced regional growth, and ultimately for the development of the state, the Government has introduced a scheme for capital subsidy to large industries and thrust sector under Gujarat Industrial Policy.

Quantum of Incentive:

An eligible industrial undertaking will be provided with capital subsidy according to the Classification of Taluka

The amount of subsidy is mentioned in the table below:

Market Development Assistance to MSMEs

In India, there are a significant number of National and International Trade Fairs organised in the Industries and Machinery manufacturing sector. As time passes by, it has been observed that the Machinery Manufacturing Industries are facing challenges in exploring business opportunities to maximum potential and participating in various National and International Exhibitions / Seminars relative to their respective sectors. Therefore, looking forward to the opportunities in Machine Manufacturing Industries in Gujarat for both, Domestic as well as the International market, The Industrial Policy 2020 Government has introduced Market Development Assistance to MSMEs to provide extended support to promote the manufacturing sector with an approach to the overall development of the State.

List of Schemes:

• Scheme 1: Assistance to MSME Manufacturing sector participation in the Exhibition (National and International)
  • • State Level Exhibition: Assistance of 75% up to 50,000. Expenditure incurred for product Literature and Display material would be limited to 10,000.
    • National Level Exhibition: Assistance of 75% up to 1 Lakh, whichever is lesser. Expenditure incurred for product Literature and Display material would be limited to 10,000.
    • International Level Exhibition (In India): Assistance of 75% up to 2 Lakhs, whichever is lesser. Expenditure incurred for product Literature and Display material would be limited to 20,000.
    • Enterprises will be entitled to a maximum of 5 times of participation in State, National, and International level in India in total.
    • International Level Exhibition (Out of India): Assistance of 60% up to 5 Lakhs. Enterprises will be entitled to a maximum of 3 times during the operation period of the scheme. Maximum expenses of product Literature and Display material is capped at 50,000.
    • Assistance will be provided in the form of Reimbursement.

• Scheme 2: Assistance to Organisers for organising industrial exhibitions in Gujarat
  • • The assistance of 60% for Electricity bill during the period of the exhibition including electricity consumption during the period of preparation
    • Assistance would be provided in the form of reimbursement based on actual expenditure incurred to the organisers

Quality Certification Scheme for MSME units

The scheme of Quality Certification for MSME units has been implemented under MSME act 2019, as extended support to MSMEs to obtain quality certification to launch a quality product in this market of competition

The Manufacturing sector is eligible for assistance listed below:

1) ERP Assistance

The assistance of 65% of the capital cost for implementing Enterprise Resource Planning (ERP) System up to a maximum amount of 1 Lakh
(a) ERP system for facilitating details of production, inventory control, sales, purchase, accounting, and HR management, etc. including server and software.
(b) The Capital cost relative to ERP systems including installation charges, software, and annual service cost.
(c) For deployment of a Software-as-a-Service (SaaS) of ERP system, annual charges would be taken into consideration

2) Quality Certification
(a) The assistance of 50% of the fees payable to certification for National/ International certificate and 50% cost of testing equipment and machinery required for the certification up to a maximum of 10 Lakhs
(b) The assistance with the cost of certificate inclusive of fees of certification agency, cost of testing equipment/ machinery as required for certifications and calibration charges of equipment
(c) The Enterprise shall apply within 1 year from the date of issuance of the certificate

Contact us for Discussion on below schemes:

• Capital Investment Subsidy for Reefer Vehicles
• Air & Sea Freight Subsidy
• Capital Subsidy for Cold Chain, Food Irradiation Processing Plants, and Pack House.
• Capital Investment Subsidy for Setting up/Expansion and Diversification/Modernization of Agro and Food Processing units