Interest Subsidy for maintenance and repair of machinery and equipment Units in Gujarat
Interest Subsidy for New Maintenance and Repair Units in Gujarat – A Golden Opportunity for Service Entrepreneurs
The Government of Gujarat continues to boost the service sector with powerful financial incentives, especially for new MSMEs involved in the maintenance and repair of machinery and equipment. If you’re planning to set up a new unit in this domain, you could benefit significantly from the Interest Subsidy Scheme under the state’s initiative for the service sector.
Here’s a complete breakdown of the scheme and how you can take advantage of it:
✅ Who is Eligible?
Only new MSMEs operating under selected service categories (as per Annexure A & B) are eligible for this interest subsidy. One such eligible category includes:
Maintenance and repair of machinery and equipment
This includes enterprises offering:
- Repair of industrial machinery
- Servicing of factory and utility equipment
- Maintenance and repair of computers, electronics, and communication systems
- Repair of household goods and appliances
💸 Interest Subsidy Benefits
The scheme provides a subsidy on the term loan interest taken for new machinery, equipment, a nd furniture/fixtures (excluding land and building).
Based on Taluka Category:
📍 Category 1 Talukas:
- 7% Interest Subsidy
- Maximum: ₹35 lakhs per annum
- Duration: 7 years
📍 Category 2 Talukas:
- 6% Interest Subsidy
- Maximum: ₹30 lakhs per annum
- Duration: 6 years
📍 Category 3 Talukas & Municipal Corporation Areas:
- 5% Interest Subsidy
- Maximum: ₹25 lakhs per annum
- Duration: 5 years
(Click here to get Category-wise classification of Taluka)
🎁 Extra Benefits
You get additional 1% interest subsidy if your enterprise falls under any of the following:
- Registered Start-Up (recognized by DPIIT or Govt. of Gujarat)
- Women Entrepreneur (100% women-owned)
- Young Entrepreneur (below 35 years, 100% youth ownership)
- Differently-abled Entrepreneur (100% ownership)
That means a maximum subsidy of up to 8% per year is possible!
📌 Important Conditions to Fulfill
To qualify and continue receiving the subsidy, you must: Register as an MSME (Udyam Registration)
- Have a valid GST registration
- If located in a Municipal Corporation area, get Shop & Establishment registration
- Hire at least 10 permanent employees
- 85% must be local (from Gujarat)
- 60% of managerial/supervisory staff must be local
- Ensure the loan is from a bank/financial institution recognized by RBI
- Loans from NBFCs are not eligible
- Choose a date of eligibility: either
- Date of first disbursement of loan OR
- Date of commercial start of services
📝 Application must be submitted online within 1 year from the chosen date of eligibility.
❌ Disqualifications
You are not eligible if:
- Your unit is not new
- You delay your application beyond the permitted window
- The term loan is sanctioned more than 1 year after service commencement
- You default on loan repayments (interest or installments)
⏱ Application Timeline
- Apply on the government online portal
- Ensure timely submission within 1 year from the first loan disbursement or commercial launch – whichever is later
- Reimbursement starts only after commercial operations begin
🧠 Final Thoughts
This subsidy scheme is a fantastic opportunity for entrepreneurs planning to launch a maintenance and repair service unit in Gujarat. With up to 8% interest subsidy available annually, you can significantly reduce your loan burden and increase profitability during your crucial early years.
🔗 Need Expert Help?
book your consultation At Adroit Corporation, we help you:
📧 Email: sales@adroitcorporation.in
📞 Call: 7203010101 or 8734010101
🌐 Visit: dev1.adroitcorporation.in
