Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Saving in Consumption of Energy and Water
By Industries and Mines Department, Government of Gujarat
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
This Gujarat government scheme offers financial assistance to MSMEs for adopting energy-efficient and water-saving practices through audit cost reimbursements and equipment subsidies.
- Funding amount
- ₹50,000 – ₹20.5L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Gujarat
- Registrations needed
- Udyam registration
About this subsidy
The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" is a comprehensive umbrella initiative launched by the Industries and Mines Department, Gujarat. This scheme, effective from August 7th, 2020, to August 6th, 2025, is designed to bolster the state's vibrant MSME sector, which plays a pivotal role in employment generation, GDP contribution, and exports. Its overarching goal is to empower entrepreneurs and enhance the global competitiveness of Gujarat's MSMEs.
The specific component, "Assistance for Saving in Consumption of Energy and Water," directly supports both existing and new enterprises in their efforts to reduce energy and water usage. This initiative is a strategic step towards encouraging industries to integrate sustainable practices. By providing financial assistance, the scheme aims to alleviate the cost burden associated with adopting eco-friendly technologies. It particularly focuses on reimbursing the expenses incurred for energy and water audits conducted by recognized institutions, and offering subsidies on the equipment recommended by these audits. This dual approach helps businesses identify inefficiencies and then invest in necessary upgrades, leading to tangible savings and a reduced environmental footprint.
Eligibility
See if you're eligible
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
- ₹50,000 – ₹20.5L
What You Get
This scheme provides substantial financial incentives for MSMEs committed to sustainable practices. Enterprises can receive reimbursement for 75% of the cost of energy or water audits, up to a maximum of ₹50,000 for each audit, available once during the scheme's operative period. Furthermore, a subsidy of 25% on the cost of equipment recommended by the auditing authority is provided, with a maximum assistance of ₹20,00,000 per enterprise, also available one time. This dual benefit covers both the assessment phase and the implementation of efficiency-improving technologies, significantly reducing the financial burden on businesses looking to enhance their environmental performance and operational savings.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted through the Investor Facilitation Portal will undergo a thorough review by the Industries and Mines Department, Gujarat. Eligibility criteria, including the completion of an energy/water audit by a recognized institution, proposed equipment installation, and the commitment to achieve a minimum 10% consumption reduction, will be assessed. Enterprises may be subject to further verification of their audit reports and implementation plans. Final approval and disbursement of assistance will be based on adherence to scheme guidelines and successful verification of the reported savings.
Application Process
- 1
New Investor Registration
Visit the IFP portal and click on 'New Investor Registration'.
You - 2
- 3
- 4
- 5
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 primary objective of this scheme?
The scheme aims to empower Gujarat's MSME sector by promoting energy and water efficiency through financial assistance, helping them reduce consumption and become more globally competitive.
Who is eligible to apply for this assistance?
Both existing and new MSME enterprises in Gujarat are eligible to apply, provided they meet the specific criteria related to audits and consumption reduction.
What are the financial benefits offered?
The scheme offers 75% reimbursement for energy/water audit costs (up to ₹50,000) and a 25% subsidy on the cost of recommended equipment (up to ₹20 lakh).
Is there a minimum reduction in consumption required?
Yes, enterprises must achieve a minimum 10% reduction in energy or water consumption after implementing the audit recommendations to qualify for the benefits.
How do I apply for the scheme?
Applications are processed online through the Investor Facilitation Portal (IFP) of the Gujarat government. You first need to register and then log in to complete the application with your business details and mandatory documents.
Is this scheme limited to specific industries?
No, the scheme is open to all MSMEs across various sectors in Gujarat that are committed to improving their energy and water efficiency.
Sources
Data on this page is compiled from official program and provider references.
