Last updated: June 6th, 2019 3:45 AM

Ambedkar Udhyog Uday Yojna

The Gujarat State Government has introduced a Special Scheme called "Bharat Ratna Dr. Baba Saheb Ambedkar Udhyog Uday Yojna" for entrepreneurs of Micro Small and Medium Enterprises (MSME) belonging to the Scheduled Caste and Scheduled Tribe in Gujarat.

Objective of Yojna

The Bharat Ratna Dr. Baba Saheb Ambedkar Udhyog Uday Yojna provides subsidy on Capital Investment and Term Loans for SC/ST entrepreneurs for the setting up, expansion and modernization of their enterprises. It supports the Stand-up India Scheme within Make in India initiatives. It is aligned with the Industrial policy 2015 which includes the mission to provide “proactive support for the Development of MSMEs in the State comprehensively with special sustainable assistance to Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs”.

Important Dates

Date Announced	24th October 2017
Beginning date of Enforcement	1st April 2017
End date of Operation	31st December 2019

Eligibility Criteria

• The applicant should be from Scheduled Caste/Scheduled Tribe category
• The Enterprise should satisfy the conditions of Micro, Small and Medium Enterprises as per the definition under the MSMED Act 2006
• The Entrepreneur should have Udyog Aadhaar.
• The MSME should be setup and owned 100% by the SC/ST entrepreneur.
• The age of applicant should be above 18.
• The Application should be received on or after 1^st April 2017.
• The enterprises should have obtained first disbursement of term loan on or after 1^st April 2017.
• Also, the enterprise should have started commercial production during the operative period of the scheme.

Terms and Conditions

• Only one expansion/diversification will be eligible for assistance.
• Only one modernization will be eligible for assistance.
• For Term Loans, only the actually disbursed amount will be considered for the incentives under this scheme. Also, loans that have been sanctioned or disbursed on second hand assets will not be eligible for incentives under this scheme.
• Only Loan sanctioned by Banks or Financial Institutions (FIs) as per RBI guidelines will be eligible for any incentive under this resolution. (Non-Banking Financial Institutes are not acceptable)
• If an enterprise has availed assistance under this scheme, it will not be entitled to avail benefit under any other scheme of State Government, unless and otherwise specified under that scheme.
• For assistance under this resolution, the investment made in the state of Gujarat shall be clubbed to decide the status of MSME.
• Enterprises need to furnish details of production, sales, turnover, and employment etc. annually to concerned DIC before end of September.
• Enterprise will have to observe Pollution Control measures as prescribed by GPCB or other competent authority.
• The enterprise shall have to obtain NOC from Municipal Corporation for doing business if the enterprise is located in the area of Municipal Corporation.
• Only new MSME of Service sector as listed in Annexure -1 will be eligible for Interest subsidy @6% with the maximum amount of Rs. 25 lakhs per annum for 5 years on the term loan of machinery and equipment anywhere in the state. Refer below link.
• Enterprise will have to employ at least 85% of the total employment and 50% of supervisory and managerial staff from local persons.
• Enterprise has to give the undertaking to confirm that he has paid all Government dues on his letterhead signed by authorized signatory.
• Enterprise can avail benefit under such schemes of Government of India if any.
• The detailed standard of procedures and implementation guidelines will be issued by the MSME Commissionerate office and will be final and binding to all the concerned stakeholders.

Types of Assistance

Assistance of Capital Investment Subsidy

1. Up to Rs. 50 Lakhs in Plant and Machineries

• • Municipal Corporations area: 20% of term loan amount not exceeding Rs. 25 lakhs
  • Outside Municipal Corporations’ area: 25% of term loan amount not exceeding Rs. 35 lakhs.

2. Between Rs. 50 Lakhs to Rs. 2 Crores in Plant and Machineries

• • Municipal Corporations area: 10% of term loan amount not exceeding Rs. 25 lakhs
  • Outside Municipal Corporations’ area: 15% of term loan amount not exceeding Rs. 35 lakhs.

3. Between Rs. 2 Crores to Rs. 10 Crores in Plant and Machineries

• • Municipal Corporations area: 10% of term loan amount not exceeding Rs. 25 lakhs
  • Outside Municipal Corporations’ area: 15% of term loan amount not exceeding Rs. 35 lakhs.

Conditions for Capital Investment Subsidy:

• Service sector will not be eligible under this scheme.
• Enterprise shall have to apply to concerned DIC either within one year from the date of the first disbursement of loan or on or before the date of commencement of commercial production whichever is later.
• Capital Investment subsidy will be paid only after the commencement of commercial production of the enterprise.
• The enterprise will be eligible under this scheme if term loan is sanctioned after one year from the date of commencement of commercial production or before the expiry of this scheme whichever is earlier.
• Total quantum of capital investment subsidy (State plus Central) in any case should not exceed the total loan amount disbursed by Bank/ Financial institution.
• Enterprise will have to remain in production for 5 years from the date of commercial production failing which amount of capital investment subsidy disbursed will be recovered as an arrear of land revenue.

Assistance of Interest Subsidy

Quantum of Interest Subsidy:

• Municipal Corporations area: Interest subsidy of 6% with the maximum amount of Rs. 25 lakhs per annum for the period of 5 years
• Outside Municipal Corporations’ area: Interest subsidy of 8% with the maximum amount of Rs. 30 lakhs per annum for a period of 5 years.
• 1% additional interest subsidy to young entrepreneur below the age of 35 years as on the date of sanction of loan
• Maximum rate of Interest subsidy to an enterprise will not be more than 9% & 7% where the rate of interest subsidy is 8%, &6% respectively.

Conditions for Interest Subsidy:

• Enterprise shall have to apply to concerned DIC either within one year from the date of first disbursement of loan or on or before the date of commencement of commercial production whichever is later.
• Enterprise shall opt for date of eligibility of interest subsidy either from the date of first disbursement of loan or from the date of commencement of commercial production.
• Late submission of application will be considered subject to deduction of late submission period after commercial production and deduction of proportionate amount of interest subsidy from maximum ceiling.
• Interest subsidy will be reimbursed only after commencement of commercial production of the enterprise.
• The enterprise cannot avail of interest subsidy under this scheme if term loan is sanctioned after one year from the date of commencement of commercial production.
• If the enterprise becomes defaulter in payment of interest or instalment of term loan to Bank/Financial institution as per guidelines of RBl, such default period will be deducted from the period of five years.
• Interest subsidy will not be available for penal interest or any other charges.
• Total quantum of interest subsidy (State plus Central) in any case shall not exceed the total interest paid to Bank/Financial institution.
• Enterprise will have to remain in production for 5 years from the date of commercial production.

For more information please click this link.