Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Rehabilitation of Sick Enterprises
By Industries and Mines Department, Government of Gujarat
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Quick Answer
This Gujarat state scheme offers financial reimbursement for up to 50% of the cost of preparing a rehabilitation scheme for eligible sick MSMEs, with a maximum of ₹1 lakh.
- Funding amount
- Up to ₹1L
- 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 an overarching initiative by the Industries and Mines Department, Gujarat, aimed at bolstering the state's vital MSME sector. MSMEs are crucial contributors to employment, GDP, and exports in Gujarat. This scheme, active from August 7, 2020, to August 6, 2025, seeks to empower entrepreneurs and enhance the global competitiveness of MSMEs. A key component of this larger scheme is "Rehabilitation of Sick Enterprises," specifically designed to provide crucial support to MSME industrial units that have been identified as 'sick' according to the criteria established by the Reserve Bank of India (RBI). The objective is to facilitate the recovery and revival of these distressed enterprises, helping them overcome financial difficulties and return to sustainable operations. By offering financial assistance for the preparation of rehabilitation plans, the government aims to reduce the burden on struggling businesses and encourage their turnaround.
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
- Up to ₹1L
What You Get
This scheme offers financial reimbursement for enterprises facing distress. Eligible sick MSMEs can receive 50% of the cost incurred in preparing their Draft Rehabilitation Scheme, with a maximum reimbursement cap of ₹1,00,000. This direct financial assistance helps alleviate the immediate burden on the struggling business, allowing them to invest in professional guidance and a structured plan to revive their operations. The reimbursement acts as a crucial support mechanism to encourage the formal rehabilitation process.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Application Process
- 1
Register on IFP
Applicant visits the Investor Facilitation Portal and completes the new investor 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 primary objective of the Rehabilitation of Sick Enterprises scheme?
The scheme aims to support Micro, Small, and Medium Enterprises (MSMEs) that have been declared 'sick' as per RBI guidelines. It provides financial assistance to help these enterprises prepare a structured rehabilitation plan and ultimately recover.
What is the maximum financial benefit an eligible MSME can receive?
An eligible MSME can receive a financial reimbursement covering 50% of the cost of preparing their Draft Rehabilitation Scheme, up to a maximum of ₹1,00,000.
Who is eligible to apply for this scheme?
Any Micro, Small, or Medium Enterprise (MSME) located in Gujarat that satisfies the RBI guidelines for sickness is eligible. Applicants must submit audited balance sheets for verification.
How do I apply for the Rehabilitation of Sick Enterprises scheme?
Applications are submitted online through the Investor Facilitation Portal (IFP) of the Gujarat government. You will first need to register as a new investor, verify your email, and then log in to complete the application with all required business details and documents.
Is there a specific deadline to apply?
The scheme is effective from August 7th, 2020 to August 6th, 2025. Applications are accepted on a rolling basis within this period, meaning there isn't a single specific deadline for submission. However, it's advisable to apply as soon as possible to benefit from the scheme.
What kind of documents are required for the application process?
While the specific list may vary, applicants typically need to provide audited balance sheets as mentioned in the eligibility criteria, along with other mandatory business documents that substantiate their MSME status and sickness as per RBI norms.
Sources
Data on this page is compiled from official program and provider references.
