Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance of Capital Investment Subsidy (Manufacturing Sector)
By Industries and Mines Department, Government of Gujarat
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Quick Answer
Gujarat government offers a capital investment subsidy of up to ₹45 lakh for Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector to boost industrial growth and competitiveness.
Results & next round
Applications for this round closed on 6 August 2025. The organiser has not published a selection list that we can verify yet.
Selections for this programme are announced by Industries and Mines Department, Government of Gujarat. Official links are listed under Sources below.
We update this page when results are published, and when the next round opens.
About this subsidy
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" is a comprehensive umbrella scheme launched by the Industries and Mines Department, Government of Gujarat. This initiative, effective from August 7th, 2020, to August 6th, 2025, is strategically designed to bolster the state's vibrant MSME sector, which plays a pivotal role in employment generation, GDP contribution, and export performance.
Specifically, the component "Assistance of Capital Investment Subsidy (Manufacturing Sector)" targets MSMEs engaged in manufacturing activities. It aims to provide crucial financial support by offering a capital investment subsidy, thereby reducing the financial burden on enterprises undertaking expansion, modernization, or diversification. This subsidy encourages new investments and helps existing MSMEs upgrade their infrastructure and technology, making them more competitive in both domestic and global markets. The scheme is a testament to Gujarat's commitment to fostering a conducive environment for industrial growth and entrepreneurial development.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- Up to ₹45 Lakhs
What You Get
This scheme provides a substantial capital investment subsidy for eligible Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector in Gujarat. The quantum of incentive varies based on the category of Taluka where the enterprise is located:
- Category 1 Talukas: Eligible for 25% of the term loan amount, up to a maximum of ₹35,00,000. An additional ₹10,00,000 will be provided if the Eligible Fixed Capital Investment (FCI) exceeds ₹10,00,00,000/-, making the total potential subsidy up to ₹45,00,000.
- Category 2 Talukas: Eligible for 20% of the term loan amount, up to a maximum of ₹30,00,000. An additional ₹7,50,000 will be provided if the Eligible FCI exceeds ₹10,00,00,000/-, for a total potential subsidy of up to ₹37,50,000.
- Category 3 Talukas & Municipal Corporation Areas: Eligible for 10% of the term loan amount, up to a maximum of ₹15,00,000. An additional ₹5,00,000 will be provided if the Eligible FCI exceeds ₹10,00,00,000/-, with a total potential subsidy of up to ₹20,00,000. This subsidy aims to mitigate investment costs, encourage new industrial setups, and facilitate the expansion and modernization of existing manufacturing units.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Selection Process
Applications for the capital investment subsidy are processed through an online system. Once an application is submitted on the Investor Facilitation Portal, it is subjected to a comprehensive review to ensure compliance with all eligibility criteria, including enterprise type, sector, loan sanction details, and operational commitments. While the source does not detail a multi-stage selection process with pitches or jury rounds, it is implied that a thorough verification of submitted documents and financial records will be conducted by the Industries and Mines Department to determine eligibility and calculate the subsidy amount.
Application Process
- 1
New Investor Registration
Visit the IFP portal and click on "New Investor Registration" to start the process.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of this scheme?
The primary objective is to empower the MSME sector in Gujarat's manufacturing industry by providing capital investment subsidies, thereby boosting employment, GDP, and exports, and enhancing global competitiveness.
Which enterprises are eligible for this capital investment subsidy?
Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector, which have secured a term loan from a recognized Bank/Financial Institution (excluding NBFCs), are eligible to apply for this subsidy.
What is the maximum subsidy amount I can receive?
The maximum capital investment subsidy an enterprise can receive is ₹45,00,000, which applies to enterprises in Category 1 Talukas with Eligible Fixed Capital Investment exceeding ₹10 crore.
Is there a specific deadline to apply for the subsidy?
Yes, applications must be submitted within one year of the term loan disbursement or before commercial production begins. The overall scheme is effective until August 6th, 2025.
What is the commitment required from the enterprise after receiving the subsidy?
The enterprise must commit to remaining operational for at least 7 years post-subsidy approval and comply with all applicable pollution control measures.
Can I apply for subsidies for multiple investment types?
No, only one type of investment project (such as Forward Integration, Backward Integration, Diversification, or Expansion) will be eligible for the subsidy under this scheme.
