Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Rehabilitation of Sick Enterprises
Industries and Mines Department, Government of Gujarat · Central government
Gujarat reimburses up to 50% (max ₹1 lakh) of rehabilitation-plan preparation costs for eligible sick MSMEs.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹1,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
About this scheme
The Industries and Mines Department, Gujarat, runs an overarching initiative titled "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)". MSMEs form a significant part of the state's employment, GDP, and export landscape. The scheme is valid from August 7, 2020, to August 6, 2025, and is designed to support entrepreneurs while improving the international competitiveness of these units.
Within this framework sits the "Rehabilitation of Sick Enterprises" component. It targets MSME industrial units classified as 'sick' under the criteria set by the Reserve Bank of India (RBI). The purpose is to aid such distressed businesses in recovering and returning to stable operations.
Financial assistance is provided for the preparation of rehabilitation plans. Through this support, the government seeks to lessen the burden on struggling units and encourage their revival.
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 classified as a Micro, Small, or Medium Enterprise (MSME). - The enterprise must meet the Reserve Bank of India (RBI) guidelines for 'sickness'. - The application must include audited balance sheets for verification purposes.
How to apply
**Registration Process:** - Go to the Investor Facilitation Portal (IFP) at https://ifp.gujarat.gov.in/DIGIGOV/. - Select "New Investor Registration" to open the registration form. - Complete all fields in the Registration Form. - Press "Submit" to forward your registration. - Activate your E-mail ID by clicking the link sent to your registered email address. - Once activation is done, your registration is finalised.
**Post-Registration Process:** - Return to the Investor Facilitation Portal (IFP) at https://ifp.gujarat.gov.in/DIGIGOV/. - Choose "Login". - Provide the email address and password created during registration. - Press the "Login" button to enter your account. - Furnish all necessary information about your enterprise and attach the required documents to finish the application for the "Rehabilitation of Sick Enterprises" scheme.
Frequently asked questions
What is the primary objective of the Rehabilitation of Sick Enterprises scheme?
The scheme supports MSMEs classified as 'sick' under RBI guidelines by offering financial assistance to prepare a structured rehabilitation plan and aid their recovery.
What is the maximum financial benefit an eligible MSME can receive?
An eligible MSME can claim reimbursement of 50% of the cost incurred in preparing its Draft Rehabilitation Scheme, capped at ₹1,00,000.
Who is eligible to apply for this scheme?
Any MSME in Gujarat meeting the RBI’s sickness criteria qualifies. Audited balance sheets must be submitted for verification.
How do I apply for the Rehabilitation of Sick Enterprises scheme?
Applications are submitted online via the Gujarat government’s Investor Facilitation Portal (IFP). You must register as a new investor, verify your email, and log in to provide the required business details and documents.
Is there a specific deadline to apply?
The scheme runs from August 7th, 2020 to August 6th, 2025, with applications accepted on a rolling basis throughout this period. There is no single submission deadline, but applying early is advisable to avail of the benefits.
What kind of documents are required for the application process?
Applicants generally need to submit audited balance sheets, as noted in the eligibility criteria, along with other required business documents that confirm their MSME status and sickness under RBI norms.
Sectors
- Msme
- Gujarat
- Rehabilitation
- Financial Support
- Sick Enterprises
Details last verified on 7 September 2026. Source: the issuer's published information.