Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance in Rent to MSEs
The “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)” launched by the Industries and Mines Department aims to position Gujarat as a global business hub, promoting sustainable manufacturing, MSME growth, and export competitiveness.
About This Scheme
The scheme “Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)” is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state’s dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from August 7th, 2020 to August 6th, 2025, this initiative supports entrepreneurs and strengthens MSMEs, making them globally competitive.
The component “Assistance in Rent to MSEs” provides financial assistance to Micro and Small Enterprises (MSEs) that have acquired a rented or leased shed for manufacturing activities.
Benefits
Financial Support: Reimbursement of 65% of rent paid, up to ₹1,00,000/- per annum.
Long-term Assistance: Available for a maximum period of 5 years.
Eligibility Criteria
The enterprise must be a Micro or Small Enterprise (MSE).
The enterprise must be engaged in manufacturing activities.
The business must have acquired a rented/leased shed for its operations.
The shed owner must have legal ownership and possession of the property.
The manufacturing unit must be consuming electricity/power for its activities.
The assistance will be applicable from the rent deed date or three months prior to production, whichever is later.
Application Process
Apply Online
Registration Process:
Step-1: Visit the
Investor Facilitation Portal (IFP)
portal. Click on “New Investor Registration” to access the registration form.
Step-2: Fill in the Registration Form. Click on “Submit”.
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Post-Registration Process:
Step-1: Visit the
Investor Facilitation Portal (IFP)
portal. Click on “Login”.
Step-2: Enter the email address and password you used during registration.
Step-3: Click the “Login” button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.
Helpdesk:
Contact Here.
Micro, Small and Medium Enterprise
An Enterprise which satisfies the conditions of Micro, Small and Medium Enterprises as per the definition under the MSME Development Act, 2006 and subsequently amended from time to time by Government of India and has obtained acknowledgement of “Udyog Aadhaar Memorandum / Udyam Registration.
New Enterprise
New Enterprise means MSME, which has filled Udyog Aadhar / Udyam Registration as prescribed by the Government of India and commences commercial production during the operative period of the scheme.
Existing Enterprise
An Existing Enterprise means MSME which has commenced commercial production before the date of announcement of the scheme.
Expansion
Expansion means where an existing/New Enterprise increases its investment in gross fixed capital by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing gross fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme.
Gross Fixed Capital Investment (GFCI)
Gross Fixed Capital Investment means the investment made in building, plant and machinery, utilities, tools and equipment, and other assets (excluding Land) to manufacture the end product.
Forward integration, Backward Integration and Diversification
Forward Integration: An Investment made in GFCI for the product which is raw material of the enterprise will be termed as backward integration.
Backward Integration: An Investment made in GECI for the further value addition in the end product of the enterprise will be termed as forward integration.
Diversification: An investment made in GFCI for the product other than the end product of the enterprise will be termed as diversification.
Term Loan
Term loan means loan sanctioned by the financial institution / Bank (Except NBFC) for the acquisition of GFCI of the enterprise. However, only the amount actually disbursed against the sanctioned will be considered for the incentives under the scheme.
Pipeline Enterprises
The Enterprises which have obtained first disbursement of term loan as effective step and could not start commercial production on or before 07/08/2020, shall be considered eligible as pipeline enterprise for incentive under previous scheme. Such enterprise should commence commercial production on or before 31/03/2021.However the enterprise which has obtained first disbursement on or before 07/08/2020 may opt for new scheme. Term Loan disbursement made during the policy period will be eligible for the enterprise which has opted for this scheme.
Official Source: View on myScheme.gov.in
Eligibility Criteria
The enterprise must be a Micro or Small Enterprise (MSE).
The enterprise must be engaged in manufacturing activities.
The business must have acquired a rented/leased shed for its operations.
The shed owner must have legal ownership and possession of the property.
The manufacturing unit must be consuming electricity/power for its activities.
The assistance will be applicable from the rent deed date or three months prior to production, whichever is later.
Benefits
Financial Support: Reimbursement of 65% of rent paid, up to ₹1,00,000/- per annum.
Long-term Assistance: Available for a maximum period of 5 years.
Application Process
Apply OnlineRegistration Process:
Step-1: Visit the Investor Facilitation Portal (IFP)
portal. Click on "New Investor Registration" to access the registration form.
Step-2: Fill in the Registration Form. Click on "Submit".
Step-3: Verify the E-mail ID using the link sent on your registered E-mail ID.
Step-4: After verification, you will be registered successfully.
Post-Registration Process:
Step-1: Visit the Investor Facilitation Portal (IFP)
portal. Click on "Login".
Step-2: Enter the email address and password you used during registration.
Step-3: Click the "Login" button to access your account.
Step-4: Now fill in the required details and mandatory documents about your business to complete the application process.
Helpdesk: Contact Here.
References & Official Links
Scheme Details
| Full Name | Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance in Rent to MSEs |
| Short Title | SAMSMEARM |
| Level | State |
| Scheme For | Infra |
| Categories | Business & Entrepreneurship |
| States | Gujarat |
| Gender | All |
| Age Range | 50 — Any years |
| Area | Both |
| Source | myScheme.gov.in ↗ |