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% of rehabilitation scheme preparation costs for sick MSMEs, capped at ₹1 lakh.
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, operates the "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" as a broad framework to support the state's MSME sector, which contributes significantly to employment, GDP, and exports. The scheme is valid from August 7, 2020, to August 6, 2025, and focuses on strengthening entrepreneurs and improving the international competitiveness of MSMEs.
Within this framework, the "Rehabilitation of Sick Enterprises" component addresses MSME industrial units classified as 'sick' under the criteria set by the Reserve Bank of India (RBI). The purpose is to aid these distressed units in recovering and returning to stable operations. Financial assistance is provided for preparing rehabilitation plans, with the aim of easing the burden on struggling businesses and supporting 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 dispatched 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 set during registration. - Press the "Login" button to enter your account. - Furnish all necessary business particulars and upload 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 Micro, Small, and Medium Enterprises (MSMEs) classified as 'sick' under RBI guidelines, 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 up to ₹1,00,000, covering 50% of the expenses incurred in preparing its Draft Rehabilitation Scheme.
Who is eligible to apply for this scheme?
Any MSME in Gujarat meeting the RBI’s criteria for sickness qualifies. Applicants must provide audited balance sheets 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, log in, and then provide all 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. Apply as soon as possible to take advantage of the scheme.
What kind of documents are required for the application process?
Applicants generally need to submit audited balance sheets, as specified in the eligibility criteria, along with other mandatory business documents that confirm their MSME status and sickness in line with RBI norms.
Sectors
- Msme
- Gujarat
- Rehabilitation
- Financial Support
- Sick Enterprises
Details last verified on 3 August 2026. Source: the issuer's published information.