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:
- a) Institutionalization of MSME Commissionerate
- b) Implementation of Gujarat Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019
- c) Establishment of MSME facilitation desks in 11 districts
- 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for MSMEs which have been redefined as per the Gazette Notification issued on 1st June 2020 which has further been superseded by S.O.2119(E) dated 26.06.2020 w.e.f.01.07.2020.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:
- The scheme shall be known as “Scheme for Assistance to Micro, Small and Medium Enterprise (MSME)”
- 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.
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