MSME refers to the Micro Small and Medium Enterprises. For the development of state, presence of MSME is a necessity. Financial Assistances to be provided by the Gujarat government on the capital and interest to be paid by the MSMEs. The characterstic features of the policy:
- Assistance of Capital and Interest Subsidy for MSMEs:
Period of Operation:
1st January 2015 to 31st December 2019
- The Enterprise registered as an industrial unit under MSME development Act, 2006 with respective DIC as manufacturing enterprise.
- For setting up new enterprise during operative period of the scheme such enterprise has to commence production during the operative period.
- For carrying out expansion or diversification by existing enterprise with investment in fixed capital more than 50% of its existing gross fixed capital investment as on date of initiation of expansion/diversification. However, such investment should be minimum 60% only in plant and machinery. Such expansion/diversification should have been completed and it should commence production during operative period.
- For carrying out modernization of existing unit with investment in plant- machinery and equipment by more than 25% of its existing gross fixed capital investment, such modernization should be carried out by way of adopting new technology/production process and/or improving quality of products.
- Only one expansion/diversification and one modernization during operative period is eligible to new unit set up during operative period of the scheme. Similarly, one expansion/diversification and one modernization during operative period shall be eligible to existing enterprises as on 1st January 2015.
- Old & Second hand machinery will not be eligible for assistance.
- Capital Investment Subsidy will be eligible only on loan amount disbursed by the bank/institution
- In Municipal Corporation Areas: Subsidy @ 10 % of term loan amount disbursed by the bank/financial institution with maximum amount of 15 lakhs.
- Area outside municipal corporation limit: Subsidy @ 15 % of term loan amount disbursed by the bank/financial institution with maximum amount of 25 lakhs.
- 1 % additional interest subsidy if enterprise is set up by youth/s having age less than 35 years as on the date of the sanction of the term loan.
- 1 % additional interest subsidy if enterprise is set up by SC/ST/Physically Challenged and Women Entrepreneurs as on the date of the sanction of the term loan
- Maximum rate of interest shall not exceed 7% in municipal corporation areas and 9% in other areas.
- Interest subsidy after payment to the Bank/Institution:
|Area||Rate of Interest Subsidy||Maximum Limit||No. of Years|
|Municipal Corporation Limit||5 % on outstanding term loan||Rs. 25 Lakhs per annum||5 Years|
|Other areas outside Municipal Corporation Limit.||7 % on outstanding term loan||Rs. 30 Lakhs per annum||5 Years|
- Assistance for Reimbursement of CGTMSE fees for MSME:
- MSME registered as an industrial unit under MSME Development act, 2006 with respective DIC as manufacturing enterprise.
- Women Entrepreneurs, SC, ST and Physically Challenged entrepreneurs who area availing collateral free term loan up to Rs. 1 Crores from financial institutions/Bank under CGTMSE will be eligible.
- Assistance as reimbursement @ 100% annual service fees paid to Bank/Financial Institution for collateral free term loan under CGTMSE, for the period of five years
Name : MR. N.M. Trivedi
Designation: Jt. Commissioner of Industries (Incentive)
Address : Block No. 1, 4th Floor, Udyog Bhavan, Sector 11, Gandhinagar-382 017
Phone : + 91 79 23252594, 23252588, 23252584, 23252581, 23252593
For More Info: Click Here
For Application form of scheme: Click Here