Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Manufacturing Sector)
Industries and Mines Department, Government of Gujarat · Central government
Gujarat's scheme subsidises interest on term loans for manufacturing MSMEs run by SC/ST entrepreneurs, with extra benefits for women, differently-abled, startups, and youth.
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
The Industries and Mines Department, Gujarat, administers the Dr. Babasaheb Ambedkar Udyog Uday Yojana as an umbrella initiative for the state's MSME sector. The scheme, valid from August 7th, 2020 to August 6th, 2025, targets SC/ST entrepreneurs and aims to enhance the global competitiveness of MSMEs, which are key contributors to employment, GDP, and exports.
Under this umbrella, the "Assistance for Interest Subsidy (Manufacturing Sector)" component offers an interest subsidy on term loans to manufacturing enterprises. This support is intended to reduce financial strain and promote growth among eligible manufacturing businesses in Gujarat. Additional assistance is extended to women entrepreneurs, differently-abled entrepreneurs, startups, and entrepreneurs under 35 years of age, supporting inclusive economic development.
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 by an SC/ST entrepreneur. - The SC/ST entrepreneur's shareholding or contribution in the enterprise must be 51% or more. - 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. - The enterprise must pay at least 2% interest on the term loan. - The application must be filed within the prescribed timeline.
How to apply
The application process is conducted entirely online through the Investor Facilitation Portal (IFP) of Gujarat.
- **Step 1: New Investor Registration:** Go to the [Investor Facilitation Portal (IFP)](https://ifp.gujarat.gov.in/DIGIGOV/) and select "New Investor Registration" to access and complete the registration form with your details. - **Step 2: Email Verification:** After submitting the registration form, verify your E-mail ID using the unique link sent to your registered email address. This step activates your account. - **Step 3: Login and Application:** Once registration and email verification are complete, log in to the portal with your registered email and password to reach the application dashboard. - **Step 4: Complete Application:** Fill in all required information about your business and upload all mandatory supporting documents as per the scheme guidelines to finish the application process.
How applications are assessed
Applications submitted online are reviewed to confirm that they meet every eligibility requirement, including enterprise type, engagement in the manufacturing sector, SC/ST entrepreneur equity contribution of 51% or more, and term loan particulars. Selection depends on conformity with scheme guidelines and the completeness of submitted documents. If needed, shortlisted applicants may be approached for additional verification or clarification prior to final approval and release of the interest subsidy.
Frequently asked questions
What is the Dr.Babasaheb Ambedkar Udyog Uday Yojana?
The Industries and Mines Department, Gujarat, runs this umbrella scheme offering an interest subsidy to manufacturing MSMEs owned by SC/ST entrepreneurs.
Who is eligible for this interest subsidy?
Enterprises in the manufacturing sector with 51% or more ownership by SC/ST entrepreneurs, which have taken a term loan from a recognised bank or financial institution prior to commencing commercial production, are eligible. The enterprise must also pay at least 2% interest on the term 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. Depending on the category, the total subsidy over the period ranges from ₹1.25 crore to ₹2.45 crore.
Are there any special considerations for certain entrepreneurs?
Yes, additional benefits are available for women entrepreneurs, differently-abled entrepreneurs, registered startups, and young entrepreneurs under 35 years of age. These benefits are designed to support inclusive growth.
How do I apply for the scheme?
The application is submitted entirely online via the Investor Facilitation Portal (IFP) of Gujarat. After registering as a new investor and verifying your email, log in to complete the form and upload all mandatory documents within the prescribed timeline.
What is an SC/ST Enterprise under this scheme?
An SC/ST Enterprise is one where SC/ST entrepreneurs hold 51% or more of the equity or ownership. This threshold ensures that the benefit is directed primarily at businesses with substantial SC/ST ownership.
Sectors
- Manufacturing Industrial
- Interest Subsidy
- Manufacturing
- Msme
- Gujarat
- Scst Entrepreneurs
- Women Entrepreneurs
- Differentlyabled Entrepreneurs
- Startups
- Young Entrepreneurs
Details last verified on 3 August 2026. Source: the issuer's published information.