Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Service Sector)
Industries and Mines Department, Government of Gujarat · Central government
Gujarat’s scheme subsidises interest on term loans for new SC/ST-run service micro-enterprises, for up to 7 years.
Closed. Applications closed on 6 August 2025. The details below describe the most recent cycle.
Key facts
- Subsidy amount
- ₹1,25,00,000 – ₹2,45,00,000
- Instrument
- Subsidy
- Deadline
- 6 August 2025
- Disbursement
- Reimbursed after spend
- Scheme duration
- 5 years
About this scheme
The Industries and Mines Department of Gujarat administers the Dr. Babasaheb Ambedkar Udyog Uday Yojana, an umbrella initiative for the state’s Micro, Small, and Medium Enterprise (MSME) sector. The scheme, active from August 7th, 2020, until August 6th, 2025, targets entrepreneurs from Scheduled Castes (SC) and Scheduled Tribes (ST). Its stated purpose is to support business growth and improve the competitive position of these enterprises within Gujarat.
This component, titled "Assistance for Interest Subsidy (Service Sector)", applies to micro-enterprises in the service industry. It provides an interest subsidy on term loans, which lowers the cost of capital for new businesses acquiring machinery, equipment, or furniture and fixtures. The measure is intended to promote capital expenditure and business expansion among SC/ST entrepreneurs in service-oriented sectors. By reducing interest expenses, the government seeks to encourage formalisation and sustained job creation within this segment of the state economy.
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 firm must be classified as a Micro, Small, or Medium enterprise. - The enterprise must be owned and operated by an SC/ST entrepreneur, with the entrepreneur’s shareholding or contribution at 51% or more. - Eligibility is restricted to new MSMEs operating in the service sector. - The enterprise must have a term loan sanctioned for acquiring new machinery, equipment, or furniture/fixtures. - The term loan must be sanctioned within one year prior to the start of commercial production. - The enterprise must hold valid tax and business registrations.
How to apply
- **Step 1: New Investor Registration.** Go to the [Investor Facilitation Portal (IFP)](https://ifp.gujarat.gov.in/DIGIGOV/) and select "New Investor Registration" to open the registration form. Provide accurate personal and business details, then submit the form. This action establishes your applicant profile on the portal. - **Step 2: Email Verification.** Following form submission, a verification link is sent to your registered email address. Click the link to confirm your email. This step is essential to activate your account. - **Step 3: Login to the Portal.** After email verification, return to the [Investor Facilitation Portal (IFP)](https://ifp.gujarat.gov.in/DIGIGOV/) and click "Login". Use the email address and password set during registration to enter your personalised applicant dashboard. - **Step 4: Complete Application.** From the dashboard, locate the applicable scheme. Fill in all required business particulars, including financial data, project information, and entrepreneur profiles. Upload all necessary supporting documents—such as Udyam/MSME registration, loan sanction letters, and caste certificates—to finalise the interest subsidy application. - **Support:** For help during the application or with technical problems, consult the [Helpdesk](https://ifp.gujarat.gov.in/DIGIGOV/IFP-pages/contact.jsp?pagedisp=static) section on the portal for guidance and issue resolution.
How applications are assessed
Applications filed via the Investor Facilitation Portal (IFP) undergo scrutiny by the Industries and Mines Department, Gujarat. The review confirms that each applicant meets the prescribed eligibility conditions, such as classification as a new service-sector Micro, Small, or Medium enterprise, the required equity stake held by SC/ST entrepreneurs, and the sanctioned term loan for qualifying assets. All uploaded documentation is checked against the scheme’s guidelines.
Once the verification is complete and an application is approved, the subsidy is released to the applicant.
Frequently asked questions
What is the Dr. Babasaheb Ambedkar Udyog Uday Yojana (Service Sector) scheme?
The Industries and Mines Department, Gujarat, offers an interest subsidy on term loans to new micro-enterprises in the service sector operated by SC/ST entrepreneurs, reducing the financial burden of capital expenditure and supporting inclusive growth.
What is the maximum interest subsidy an entrepreneur can receive?
The maximum annual interest subsidy depends on the Taluka category, reaching up to ₹35,00,000 per annum for enterprises in Category I Talukas over a 7-year period. Over the full tenure, the total subsidy can amount to ₹2,45,00,000, which reduces the overall interest burden.
Are there any additional benefits for startups?
Yes, registered service-sector startups with valid Udyam/MSME Registration can receive an additional 1% interest subsidy. This extra support aims to assist new businesses and promote innovation in the service sector.
What types of businesses are eligible for this subsidy?
Eligibility is limited to new Micro, Small, or Medium service-sector enterprises where an SC/ST entrepreneur holds at least 51% ownership, and which have obtained a term loan for new machinery, equipment, or furniture/fixtures within one year of starting commercial production. The enterprise must also hold valid tax and business registrations.
How do I apply for the Dr. Babasaheb Ambedkar Udyog Uday Yojana?
Applications are submitted online via Gujarat's Investor Facilitation Portal (IFP), beginning with registration and email verification, followed by logging in to complete the detailed form with all required business information and mandatory documents. Ensure all details are accurate to avoid delays.
What is the duration of the scheme and how long can I receive benefits?
The umbrella scheme runs from August 7th, 2020, to August 6th, 2025. Depending on the Taluka category, individual beneficiaries receive interest subsidy for 5 to 7 years.
Sectors
- Interest Subsidy
- Msme
- Scst Entrepreneurs
- Service Sector
- Gujarat
Details last verified on 3 August 2026. Source: the issuer's published information.