Dr.Babasaheb Ambedkar Udyog Uday Yojana: Assistance for Interest Subsidy (Manufacturing Sector)
By Industries and Mines Department, Government of Gujarat
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Quick Answer
Gujarat interest subsidy on term loans for manufacturing MSMEs run by SC/ST entrepreneurs, with extra benefits for women, differently-abled, startups and young entrepreneurs.
- Funding amount
- ₹1.25Cr – ₹2.45Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Gujarat
- Registrations needed
- Udyam registration
About this subsidy
This Gujarat scheme gives an interest subsidy on term loans to manufacturing MSMEs run by SC/ST entrepreneurs. It was launched by the Industries and Mines Department, Gujarat, and runs from August 7th, 2020 to August 6th, 2025.
The subsidy is 6-8% on term loans for 5 to 7 years. The maximum annual subsidy is ₹25 lakh to ₹35 lakh, depending on the taluka category. Additional benefits are available for women entrepreneurs, differently-abled entrepreneurs, startups, and young entrepreneurs below 35 years of age.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Industries & Mines Department (IMD) of the Government of Gujarat is the state department that makes industrial and MSME policy. Its executive arm, the Industries Commissionerate, implements those policies, both the state's and the central government's, and runs the Startup…
Learn moreBenefits & Funding
- Amount
- ₹1.25Cr – ₹2.45Cr
What You Get
- Interest Subsidy: Receive an interest subsidy of 6-8% on term loans for manufacturing enterprises. The maximum annual subsidy ranges from ₹25 lakh to ₹35 lakh, depending on the taluka category.
- Long-term Support: The subsidy is provided for a period of 5 to 7 years, offering significant long-term financial relief and reducing the overall cost of borrowing for eligible businesses.
- Targeted Benefits: Additional benefits are available for women entrepreneurs, differently-abled entrepreneurs, startups, and young entrepreneurs below 35 years of age, encouraging diverse participation in the manufacturing sector.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted online will undergo a thorough review process to verify adherence to all eligibility criteria, including the enterprise type, manufacturing sector engagement, SC/ST entrepreneur contribution (51% or more equity), and details of the term loan. The selection will be based on compliance with scheme guidelines and the completeness of the documentation provided. Shortlisted applicants may be contacted for further verification or clarification if necessary, before final approval and disbursement of the interest subsidy.
Application Process
- 1
Register on IFP
Visit the Investor Facilitation Portal and complete the new investor registration.
You - 2
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the Dr.Babasaheb Ambedkar Udyog Uday Yojana?
It is an umbrella scheme launched by the Industries and Mines Department, Gujarat, providing an interest subsidy to Micro, Small, and Medium Enterprises (MSMEs) in the manufacturing sector, specifically those led by SC/ST entrepreneurs.
Who is eligible for this interest subsidy?
Micro/Small/Medium enterprises with 51% or more contribution from SC/ST entrepreneurs, engaged in the manufacturing sector, and who have availed a term loan from a recognized bank or financial institution before starting commercial production. The enterprise must also bear a minimum of 2% interest on the term loan.
What is the maximum interest subsidy available?
The maximum annual interest subsidy is ₹35 lakh for a period of 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. The total subsidy over the period can range from ₹1.25 crore to ₹2.45 crore depending on the category.
Are there any special considerations for certain entrepreneurs?
Yes, additional benefits are available for specific groups including women entrepreneurs, differently-abled entrepreneurs, registered startups, and young entrepreneurs below 35 years of age. These additional benefits aim to promote inclusive growth.
How do I apply for the scheme?
The application process is entirely online through the Investor Facilitation Portal (IFP) of Gujarat. You must first complete a new investor registration, verify your email ID, and then log in to fill out the detailed application form and upload all mandatory business documents within the prescribed timeline.
What is an SC/ST Enterprise under this scheme?
An SC/ST Enterprise is defined as an enterprise in which the contribution (equity/ownership) of SC/ST entrepreneurs is 51% or more. This ensures the benefit is primarily directed towards businesses with significant SC/ST ownership.
Sources
Data on this page is compiled from official program and provider references.
