Sarkari Yojana
Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Service Sector)
About Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Service Sector)
“Dr.Babasaheb Ambedkar Udyog Uday Yojana” is a broad umbrella initiative of Gujarat’s Industries and Mines Department that seeks to strengthen the state’s dynamic MSME sector, a key contributor to jobs, GDP and exports. Valid from August 7th, 2020 to August 6th, 2025, the initiative stands behind SC/ST entrepreneurs and helps MSMEs become globally competitive. Its “Assistance for Interest Subsidy (Service Sector)” component offers micro-enterprises operating in the service sector a subsidy on the interest charged on their term loan.
Scheme Overview
State Government
Business Entity
07 Aug 2020
Scheme Details
Eligibility Requirements
To qualify for Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Service Sector), applicants must satisfy the following conditions:
Applicants must be Micro/Small/Medium enterprises whose promoter is…
Applicants must be Micro/Small/Medium enterprises whose promoter is an SC/ST entrepreneur.
The unit has to be a manufacturing enterprise
The unit has to be a manufacturing enterprise.
Eligibility is restricted to new service-sector MSMEs listed…
Eligibility is restricted to new service-sector MSMEs listed in Annexure A and B.
A term loan should have been sanctioned for…
A term loan should have been sanctioned for buying new machinery, equipment or furniture/fixtures.
That loan must have been sanctioned within one…
That loan must have been sanctioned within one year prior to the start of commercial production.
The enterprise needs valid tax and business registrations
The enterprise needs valid tax and business registrations. Note: SC/ST Enterprise: Any enterprise where the SC/ST entrepreneur's contribution stands at 51% or more is treated as an SC/ST Enterprise.
Benefits Provided
Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Service Sector) provides the following benefits to eligible applicants:
Financial Assistance: Rates of interest subsidy vary with the taluka category:
Category of Taluka:
Category I | Quantum of Incentive: 8% on the Term Loan, subject to a ceiling of ₹35,00,000/- per annum, for a period of 7 years
Category of Taluka:
Category II | Quantum of Incentive: 7% on the Term Loan, subject to a ceiling of ₹30,00,000/- per annum, for a period of 6 years
Category of Taluka:
Category III & Municipal Corporation Areas | Quantum of Incentive: 6% on the Term Loan, subject to a ceiling of ₹25,00,000/- per annum, for a period of 5 years Additional Subsidy: Registered startups in the service sector holding Udyam/MSME Registration receive an extra 1% interest subsidy.
Documents Required
Applicants should keep the following documents ready before starting the application:
The application in printed form, including the declaration…
The application in printed form, including the declaration and undertaking, signed by an authorized signatory whose name and designation appear alongside the enterprise's stamp.
Copy of the Udyog Aadhaar / Udyam Registration…
Copy of the Udyog Aadhaar / Udyam Registration acknowledgment.
Copy of the letter sanctioning the term loan
Copy of the letter sanctioning the term loan.
Copy of the term loan account statement, or…
Copy of the term loan account statement, or a bank certificate of the first disbursement.
Copy of the document constituting the enterprise (a…
Copy of the document constituting the enterprise (a registered partnership deed in the case of partnerships).
Copy of the enterprise's DPR for projects of…
Copy of the enterprise's DPR for projects of up to ₹5 crores; where the project exceeds ₹5 crores, the DIC will seek a bank appraisal report.
Shop & Establishment Certificate for service sector units…
Shop & Establishment Certificate for service sector units located in municipal corporations.
Copy of the GST registration, if applicable
Copy of the GST registration, if applicable.
Copy of the enterprise's PAN card
Copy of the enterprise's PAN card.
Copy of last financial year's ITR giving the…
Copy of last financial year's ITR giving the plant & machinery value (first-time new enterprises can submit a self-declaration).
Copy of a birth certificate or school leaving…
Copy of a birth certificate or school leaving certificate for entrepreneurs aged under 35 years as on the loan sanction date of the bank.
Copy of a caste certificate from the competent…
Copy of a caste certificate from the competent authority.
Copy of a differently abled certificate from the…
Copy of a differently abled certificate from the competent authority.
Copy of the CTE from the GPCB, if…
Copy of the CTE from the GPCB, if applicable.
Any one self-certified/certified property document, for example 7/12…
Any one self-certified/certified property document, for example 7/12 Utara, Namuna 6, copy of index or property card.
NA permission if applicable
NA permission if applicable.
Copy of a notarized rent deed (agreement), plus…
Copy of a notarized rent deed (agreement), plus the owner's proof/affidavit showing ownership of the land/property.
Copy of a lease deed (agreement), plus the…
Copy of a lease deed (agreement), plus the owner's proof of ownership of the land/property.
Copy of the receipt for property tax (for…
Copy of the receipt for property tax (for service activities).
Board resolution authorising the signatory, where the applicant…
Board resolution authorising the signatory, where the applicant is a partnership, LLP, Pvt. Ltd. or Limited Company.
Declaration and undertaking covering other investments in Gujarat
Declaration and undertaking covering other investments in Gujarat.
Balance sheet annexure giving the gross fixed capital…
Balance sheet annexure giving the gross fixed capital investment of the preceding financial year.
Certificate from a CA giving the gross fixed…
Certificate from a CA giving the gross fixed capital investment before the expansion/diversification/forward or backward integration began.
2020-08-07
How to Apply
Online Application
Applicants can apply for Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Service Sector) through the online application process outlined below.
Application Process
Registration Process:
Step-1: Go to the Investor Facilitation Portal (IFP) portal; the registration form opens when you click "New Investor Registration".
Step-2: Enter your details in the Registration Form and hit "Submit".
Step-3: A link will arrive at your registered E-mail ID; use it to verify the E-mail ID.
Step-4: With verification complete, your registration goes through successfully.
Post-Registration Process:
Step-1: Head back to the Investor Facilitation Portal (IFP) portal and click "Login".
Step-2: Key in the same email address and password used at registration.
Step-3: Your account opens after you click the "Login" button.
Step-4: Fill out the business details asked for and attach the mandatory documents to wrap up the application.
Helpdesk:
Contact
Exclusions / Who Is Not Eligible
- Enterprises whose term loan is sanctioned after one year from the commencement of commercial production.
- Enterprises defaulting on loan repayments as per RBI and bank guidelines.
- Enterprises seeking reimbursement for penal interest or other bank charges.
- Enterprises availing interest subsidy under any Central Government scheme where the total subsidy exceeds the total interest paid.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.