Types of subsidy / incentives available to MSMEs in Gujarat

Types of subsidy / incentives available to MSMEs in Gujarat.

Promotion of Micro, Small and Medium Enterprises (MSMEs)

MSMEs play a vital role in achieving balanced growth and in creating employment opportunities. They also form an integral part of the value chain of the larger industrial ecosystem. As part of this policy, a focused scheme has been developed to further strengthen the MSME ecosystem in the state. Some of the initiatives already taken by the Government are enlisted below:

1. a) Institutionalization of MSME Commissionerate
2. b) Implementation of Gujarat Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019
3. c) Establishment of MSME facilitation desks in 11 districts
4. d) Online sanction of incentives

 

While the MSME growth has been commendable, interventions are required to be explored in areas such as: sub-optimal scale of operation, need for increasing exports, need for integration with the global supply chain, access to global markets, effective management of working capital, availability of skilled manpower and increasing domestic & global competition. The new definition for MSMEs as introduced by the Government of India will encourage MSMEs to expand their operations and increase investment, turnover and exports.

As per The Mirco, Small and Medium Enterprise Development Act, 2006 and updated criteria for MSMEs which have been redefined as per the Gazette Notification issued on 1^st June 2020 which has further been superseded by S.O.2119(E) dated 26.06.2020 w.e.f.01.07.2020.

The new MSME definition focuses on composite criteria of investment and turnover and is represented in the following table:

New MSME Classification w.e.f July 1st, 2020 Composite Criteria : Investment in Plant & Machinery or Equipment and Turnover
Composite Criteria : Investment in Plant & Machinery or Equipment and Turnover
Classification	Micro	Small	Medium
Manufacturing & Services	Investment does not exceed Rs 1 Cr. and Turnover does not exceed Rs 5 Cr.	Investment does not exceed Rs 10 Cr. and Turnover does not exceed Rs 50 Cr.	Investment does not exceed Rs 50 Cr. and Turnover does not exceed Rs 250 Cr

 

In view of the strategy under New Industrial Policy 2020 the State Government is pleased to introduce following Scheme:

1. The scheme shall be known as “Scheme for Assistance to Micro, Small and Medium Enterprise (MSME)”
2.  The operative period of the scheme shall be from the date 07/08/2020 (i.e. date of announcement of Industrial Policy 2020) to 06/08/2025.

The following Micro, Small and Medium Enterprise is eligible for Subsidies:

 

Sr. No	MSME	Description
1.	New Enterprise	An Enterprise obtained “Udyog Aadhaar Memorandum / Udyam Registration and commences commercial production during the Operative period (i.e. 07/08/2020 (i.e. date of announcement of Industrial Policy 2020) to 06/08/2025)
2.	Existing Enterprise	An Existing Enterprise means MSME which has commenced commercial production before the date of announcement of the scheme i.e. 07/08/2020
a)	Expansion	Expansion means where an existing/ New enterprise increases its investment in gross fixed capital by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing gross fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme.
b)	Integration	All types of integration like backward integration, forward integration and diversification is eligible for assistance under this scheme.

 

The following incentives / Subsidies available to MSMEs:

Scheme 1: Capital Investment Subsidy for Manufacturing Sector

Scheme 2: Interest Subsidy for both Manufacturing Sector as well as Service Sector

Scheme 3: Quality Certification

Scheme 4: Financial Support to MSMEs in ZED Certification

Scheme 5: Assistance in implementation of Information & communication Technology adoption

Scheme 6: Technology Upgradation & Acquisition Support

Scheme 7: Assistance for Patent Registration

Scheme 8: Assistance for Saving in Consumption of Energy and Water

Scheme 9: Market Development Assistance

Scheme 10: Raising capital through SME Exchange

Scheme 11: MSME Awards

Scheme 12: Reimbursement of CGTMSE fees

Scheme 13: Energy & Water Conservation

Scheme 14: Service line & Power connection charges

Scheme 15: Rehabilitation of Sick Enterprise

Scheme 16: Assistance in Rent to MSEs

Click on the name of all the above subsidy / incentives available to MSMEs in Gujarat state to know more like amount of subsidy, time period of subsidy, eligibility and other detailed terms and conditions.