Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Manufacturing Sector)
Industries and Mines Department, Government of Gujarat · Central government
Gujarat offers an interest subsidy on term loans to manufacturing MSMEs run by SC/ST entrepreneurs, with extra benefits for women, differently-abled, startup and young owners.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- ₹1,25,00,000 – ₹2,45,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
**Dr. Babasaheb Ambedkar Udyog Uday Yojana** is an umbrella scheme of the Industries and Mines Department, Gujarat. It is intended to strengthen the state's MSME sector, which is a major contributor to employment, GDP and exports. The scheme remains in force from 7 August 2020 to 6 August 2025 and extends support to SC/ST entrepreneurs while helping MSMEs compete globally.
**Assistance for Interest Subsidy (Manufacturing Sector)** is one component of the scheme. Under it, manufacturing enterprises receive an interest subsidy on term loans, which lowers their financial burden and supports growth and competitiveness among the targeted manufacturing businesses of Gujarat.
Women entrepreneurs, differently-abled entrepreneurs, startups and young entrepreneurs below 35 years of age can avail additional benefits under this component.
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 enterprise owned and operated by an entrepreneur belonging to the Scheduled Caste or Scheduled Tribe. - The SC/ST entrepreneur must hold a stake of at least 51% in the enterprise. - The enterprise must operate in the manufacturing sector. - The term loan must be obtained from a recognised bank or financial institution. - The loan must be sanctioned prior to the commencement of commercial production by the enterprise. - The enterprise must pay a minimum of 2% interest on the term loan. - The application must be filed within the prescribed timeline.
How to apply
Applications are submitted wholly online through Gujarat's Investor Facilitation Portal (IFP).
- **Step 1: Register as a new investor:** Go to the [Investor Facilitation Portal (IFP)](https://ifp.gujarat.gov.in/DIGIGOV/) and select "New Investor Registration" to open the registration form and enter your details. - **Step 2: Verify your email:** Send in the completed registration form, then confirm your E-mail ID through the unique link delivered to the email address you registered. Your account becomes active once this is done. - **Step 3: Log in and begin the application:** Once registration and email verification are complete, sign in to the portal with your registered email and password to reach the application dashboard. - **Step 4: Fill in the application:** Enter all the required particulars about your business and attach every mandatory supporting document laid down in the scheme guidelines, thereby completing the application.
How applications are assessed
Once an application is filed online, it is examined against each eligibility condition — the type of enterprise, involvement in the manufacturing sector, equity held by SC/ST entrepreneurs at 51% or more, and the particulars of the term loan. Selection depends on how far the application meets the scheme guidelines and whether the supporting documents are complete.
Where required, shortlisted applicants may be approached to verify details or seek clarification. Only after this stage is the interest subsidy finally approved and disbursed.
Frequently asked questions
What is the Dr.Babasaheb Ambedkar Udyog Uday Yojana?
Gujarat's Industries and Mines Department runs this umbrella scheme, which offers an interest subsidy to manufacturing-sector MSMEs, with a focus on enterprises led by SC/ST entrepreneurs.
Who is eligible for this interest subsidy?
SC/ST entrepreneurs holding at least 51% ownership in a micro, small or medium manufacturing enterprise qualify if they have taken a term loan from a recognised bank or financial institution before commencing commercial production, provided the enterprise pays a minimum of 2% interest on that loan.
What is the maximum interest subsidy available?
The maximum annual interest subsidy is ₹35 lakh for 7 years in Category I Talukas, ₹30 lakh for 6 years in Category II Talukas, and ₹25 lakh for 5 years in Category III and Municipal Corporation Areas, giving a total subsidy of ₹1.25 crore to ₹2.45 crore depending on the category.
Are there any special considerations for certain entrepreneurs?
Yes. Women entrepreneurs, differently-abled entrepreneurs, registered startups, and entrepreneurs under 35 years of age can access extra benefits designed to encourage inclusive growth.
How do I apply for the scheme?
Apply through Gujarat's Investor Facilitation Portal (IFP), which handles the entire process online: register as a new investor, verify your email ID, then log in to complete the detailed application form and upload all mandatory business documents within the prescribed timeline.
What is an SC/ST Enterprise under this scheme?
An enterprise qualifies as an SC/ST Enterprise when SC/ST entrepreneurs hold 51% or more of its equity or ownership, a threshold that ensures the benefit reaches businesses where SC/ST ownership is substantial.
Sectors
- Manufacturing Industrial
- Interest Subsidy
- Manufacturing
- Msme
- Gujarat
- Scst Entrepreneurs
- Women Entrepreneurs
- Differentlyabled Entrepreneurs
- Startups
- Young Entrepreneurs
Details last verified on 18 September 2026. Source: the issuer's published information.