Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Power Connection Charges
Industries and Mines Department, Government of Gujarat · Central government
Gujarat provides MSMEs up to ₹5,00,000 towards LT/HT power service line charges.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Industries and Mines Department, Gujarat, introduced the Scheme for Assistance to Micro, Small and Medium Enterprises (MSME) as an umbrella scheme. It came into force on August 7th, 2020, and remains valid until August 6th, 2025. The scheme addresses the state's MSME sector, which contributes substantially to employment, GDP and exports, by extending support to entrepreneurs and helping MSMEs compete at a global level.
One component under this scheme, Assistance for Power Connection Charges, offers financial assistance to eligible MSMEs situated outside GIDC or other approved industrial parks. The purpose is to help these units meet infrastructure costs.
By providing this direct financial support, the scheme seeks to bring down operational expenses for such businesses and to encourage industrial growth and competitiveness within the state's MSME sector.
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 fall under the Micro, Small or Medium category. - The unit's location must be outside a GIDC or an approved industrial park. - Power connection charges must have been paid by the applicant to the distribution licensee between August 7th, 2020 and August 6th, 2025, the scheme's operative period. - The reimbursement application must be filed within one year of the payment.
How to apply
**Registration Process:** - Go to the [Investor Facilitation Portal (IFP)](https://ifp.gujarat.gov.in/DIGIGOV/). - Select "New Investor Registration" to open the registration form. - Complete the Registration Form and select "Submit". - Use the link sent to your registered E-mail ID to verify your E-mail ID. - Once verification is complete, your registration is successful.
**Post-Registration Process:** - Go to the [Investor Facilitation Portal (IFP)](https://ifp.gujarat.gov.in/DIGIGOV/) and select "Login". - Provide the email address and password you used during registration. - Select the "Login" button to access your account. - Enter the required details and upload the mandatory documents about your business to complete the application process.
Frequently asked questions
What is the purpose of the Scheme for Assistance to MSME?
The scheme provides financial assistance to MSMEs in Gujarat, with the objectives of supporting employment, GDP and exports, and improving their competitiveness internationally.
Which specific component of the scheme is 'Assistance for Power Connection Charges'?
MSMEs can claim financial assistance under this component for charges paid to distribution licensees towards Low Tension (LT) or High Tension (HT) service lines.
What is the maximum financial assistance available under this component?
MSMEs are eligible for reimbursement of up to 35% of the charges they have paid, subject to a ceiling of ₹5,00,000.
Are there any location restrictions for eligible units?
No. To qualify, the unit has to be situated outside a GIDC estate or any other approved industrial park.
What is the timeframe for applying for reimbursement?
Submit the reimbursement application within one year of the date on which the power connection charges were paid, provided that payment fell within the scheme's operative period of 7th August 2020 to 6th August 2025.
How can an MSME apply for this scheme?
Apply online via Gujarat's Investor Facilitation Portal (IFP): register as a new user, log in, then complete the form with the required details and upload the mandatory documents.
Sectors
- Power Connection
- Electricity Subsidy
- Msme Support
Details last verified on 18 September 2026. Source: the issuer's published information.