Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance of Capital Investment Subsidy
Industries and Mines Department, Government of Gujarat · Central government
Gujarat offers SC/ST entrepreneurs up to ₹50 lakh in capital investment subsidy to set up or expand manufacturing micro-enterprises.
Closed. Applications closed on 6 August 2025. The details below describe the most recent cycle.
Key facts
- Subsidy amount
- Up to ₹50,00,000
- Instrument
- Subsidy
- Deadline
- 6 August 2025
- Disbursement
- Reimbursed after spend
About this scheme
The Industries and Mines Department, Gujarat, runs an umbrella scheme called the Dr. Babasaheb Ambedkar Udyog Uday Yojana. It seeks to strengthen the state's MSME sector, which contributes significantly to employment, GDP and exports. The scheme operates from 7 August 2020 to 6 August 2025. Two of its stated aims are to support entrepreneurs belonging to Scheduled Castes (SC) and Scheduled Tribes (ST), and to improve the global competitiveness of MSMEs.
One component under this umbrella is "Assistance of Capital Investment Subsidy to Micro enterprises". It extends direct capital investment support to micro-enterprises carrying out manufacturing activity.
By lowering the financial load on entrepreneurs, the subsidy encourages investment and growth within the state's industrial landscape.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Required
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Gujarat
- The enterprise must be a Micro, Small or Medium manufacturing enterprise owned and operated by an SC/ST entrepreneur, with SC/ST individuals holding a contribution of 51% or more. - The enterprise must be engaged in manufacturing. - The application must be filed online no later than one (1) year from the later of these three dates: the first loan disbursement date, the date commercial production commenced, or the GR issue date. In any case, it must be filed before the scheme's final operative date, August 6, 2025. - The term loan must be sanctioned prior to the commencement of commercial production. - Commercial production must have commenced for the enterprise to claim the subsidy. - Where a Central Government subsidy is also being availed, the total subsidy received from the State and Central Governments together must not exceed the total loan amount disbursed.
How to apply
1. **Register as a new investor**: Go to the Investor Facilitation Portal (IFP) at https://ifp.gujarat.gov.in/DIGIGOV/. Select "New Investor Registration" and complete the registration form. 2. **Verify your email**: Once the form is submitted, a link will be sent to your registered email address. Use it to confirm your email ID. 3. **Log in**: Having registered and verified your email, go back to the IFP portal, select "Login", and sign in with your registered email address and password. 4. **Finish the application**: Open your account, enter all the details sought, and upload the mandatory documents relating to your business so that the capital investment subsidy application is complete.
Frequently asked questions
What is the primary objective of the Dr.Babasaheb Ambedkar Udyog Uday Yojana?
The scheme supports MSMEs in the state, with particular emphasis on SC/ST entrepreneurs and micro-enterprises in manufacturing, to help them compete globally.
Who is considered an SC/ST Enterprise under this scheme?
An enterprise qualifies as an SC/ST Enterprise when SC/ST entrepreneurs hold a stake of at least 51%.
What are the financial incentives offered?
Capital investment subsidy under this scheme ranges from 15% to 30% of the term loan amount, capped at ₹50 lakh, and the applicable rate depends on the taluka category and the total Fixed Capital Investment (FCI).
When must applications be submitted?
Submit your application online no later than one year from whichever of these falls last: the first loan disbursement, the start of commercial production, or the GR issue date. In any case, it must be filed before the scheme closes on August 6, 2025.
Can I avail other government subsidies concurrently?
Yes, though the total subsidy received from both State and Central Governments must not go beyond the loan amount disbursed to the enterprise.
What are the key eligibility criteria for this subsidy?
To qualify, a manufacturing enterprise must fall in the Micro, Small or Medium category and be run primarily by SC/ST entrepreneurs, who must hold a contribution of 51% or more. The applicant should also have secured a term loan and commenced commercial production prior to applying for the subsidy.
Sectors
- Manufacturing Industrial
- Gujarat Msme
- Sc St Entrepreneurs
- Manufacturing Subsidy
- Capital Investment
Details last verified on 18 September 2026. Source: the issuer's published information.