Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Power Connection Charges
By Industries and Mines Department, Government of Gujarat
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Quick Answer
Gujarat MSMEs outside GIDC or approved industrial parks get 35% of LT/HT power service line charges reimbursed, up to ₹5,00,000.
- Funding amount
- Up to ₹5L
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Gujarat
- Registrations needed
- Udyam registration
About this subsidy
MSMEs in Gujarat located outside GIDC or an approved industrial park get back 35% of the charges they paid for Low Tension (LT) or High Tension (HT) service lines for a power connection, up to ₹5,00,000.
The Industries and Mines Department, Gujarat runs the scheme. It covers charges paid to the distribution licensee between August 7th, 2020 and August 6th, 2025. Apply for reimbursement within one year of payment.
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
- Up to ₹5L
What You Get
The scheme provides significant financial relief to Micro, Small, and Medium Enterprises (MSMEs) by offering a reimbursement of 35% of the charges paid for Low Tension (LT) or High Tension (HT) service lines for power connection. This assistance is capped at a maximum of ₹5,00,000. The benefit helps MSMEs reduce their initial infrastructure costs, making it easier for them to establish or expand operations, especially those located outside designated industrial zones. This direct financial support aims to bolster the competitiveness and growth of the MSME sector in Gujarat, enhancing their operational efficiency and reducing financial burden.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
New Investor Registration
Visit the Investor Facilitation Portal (IFP) and complete the registration form.
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 purpose of the Scheme for Assistance to MSME?
The scheme aims to empower Gujarat's dynamic MSME sector by providing financial assistance, thereby contributing to employment, GDP, and exports, and making MSMEs globally competitive.
Which specific component of the scheme is 'Assistance for Power Connection Charges'?
This component provides financial assistance to MSMEs for charges paid to distribution licensees for Low Tension (LT) or High Tension (HT) service lines.
What is the maximum financial assistance available under this component?
MSMEs can receive up to 35% of the charges paid, with a maximum limit of ₹5,00,000/-.
Are there any location restrictions for eligible units?
Yes, the unit must be located outside GIDC (Gujarat Industrial Development Corporation) or other approved industrial parks.
What is the timeframe for applying for reimbursement?
The application for reimbursement must be submitted within one year of the payment date of the power connection charges, provided the payment was made during the scheme's operative period (August 7th, 2020 to August 6th, 2025).
How can an MSME apply for this scheme?
Applications are submitted online through the Investor Facilitation Portal (IFP) of Gujarat. New users must register first, then log in to complete the application by filling in required details and uploading mandatory documents.
Sources
Data on this page is compiled from official program and provider references.
News
- Gujarat offers MSMEs interest aid, power subsidies and support for AI adoptionedexlive.com · 2 weeks ago
Source: Google News aggregated
