Bharat Ratna Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance to Micro and Small Enterprises (MSE) of SC/ST for Plot Developed by GIDC

What is the GIDC plot assistance under Dr. Babasaheb Ambedkar Udyog Uday Yojana?

Bharat Ratna Dr. Babasaheb Ambedkar Udyog Uday Yojana is the Government of Gujarat's dedicated MSME package for Scheduled Caste and Scheduled Tribe entrepreneurs, notified by the Industries and Mines Department under Government Resolution No. MSM-102017-332-Ch dated 24 October 2017. Component 10 of that resolution is titled "Assistance to Micro and Small Enterprises (MSE) of SC/ST for plot developed by GIDC", and it addresses the single largest entry barrier a first-generation entrepreneur faces, the cost of industrial land.

According to the Government Resolution, the Gujarat Industrial Development Corporation (GIDC) allots a plot to an SC or ST entrepreneur in an estate approved under the state government scheme notified vide resolution no. MIS/102015/430906/Ch dated 10 March 2015. The enterprise is eligible for assistance up to 70% of the allotment price. On payment of the remaining 30% of the allotment price, GIDC hands over possession of the plot and submits the claim for the subsidy to the Commissioner MSME.

That structure matters. The entrepreneur does not wait for a reimbursement cheque; the subsidy flows between GIDC and the MSME Commissionerate, and what the entrepreneur experiences is a plot handed over against 30% of its price.

Who is eligible for the SC/ST GIDC plot subsidy?

You can be considered if:

• Your unit is a micro or small enterprise as defined under the MSMED Act, 2006, holding an Entrepreneurs Memorandum or Udyam registration.
• The enterprise is owned 100% by SC or ST entrepreneurs. Any individual of Scheduled Caste or Scheduled Tribe category above 18 years of age is eligible to apply for assistance under the yojana.
• The plot is in a GIDC estate approved under the state government scheme referred to in the resolution.
• The plot size does not exceed 1,000 sq m, except where an irregular size is caused by planning on the borders of the layout.
• The unit commences production within the operative period of the scheme.

You cannot apply if:

• The activity proposed is trading, which the resolution expressly excludes.
• The enterprise is not wholly owned by SC or ST entrepreneurs.
• The unit is a medium or large enterprise; this component is written for micro and small enterprises only.
• The plot is outside an approved GIDC estate or exceeds the size limit without falling in the irregular-layout exception.
• The enterprise wants cash in hand rather than a discounted allotment. The benefit is delivered through the allotment price, not as a transfer to the entrepreneur.

What documents are required?

The Commissioner MSME is supported by the resolution to prescribe the forms, the checklist and the procedure and to finalise implementation guidelines, so the exact paper set is the one published on the MSME Commissionerate incentive page at the time of application.

How to apply for a subsidised GIDC plot

1. Confirm that the GIDC estate you are interested in is one approved under the state government scheme referred to in the resolution, and that a plot of up to 1,000 sq m is available.
2. Apply to GIDC for allotment of the plot in the normal way, following the corporation's prevailing allotment policy and terms of allotment and maintenance.
3. Submit your caste certificates, Udyam registration, constitution documents and project report so that GIDC can record the allotment as an SC/ST allotment under the yojana.
4. On allotment, pay 30% of the allotment price to GIDC and take possession of the plot.
5. Allow GIDC to submit the claim for the balance of up to 70% to the Commissioner MSME.
6. Commence production within the operative period of the scheme and keep the unit running, because the assistance is tied to an operating manufacturing enterprise.

How is the assistance sanctioned and disbursed?

Sanction and disbursement of proposals under this component is done by the office of the MSME Commissionerate, not by the District Industries Centre. The resolution is explicit that disbursement of the assistance shall be released on availability of government grant, so timing depends on budget release in the financial year. The budget for the yojana sits under Demand No. 95 for Scheduled Caste beneficiaries and Demand No. 96, Tribal Area Sub Plan, for Scheduled Tribe beneficiaries.

The State Level Implementation Committee, chaired by the Commissioner MSME and including the Additional Industries Commissioner, the Financial Adviser of the Industries and Mines Department, the Deputy Secretary of the department and the President of the Gujarat Small Scale Industries Federation, is supported to decide issues and interpret the resolution. Its interpretation is final and binding. Representatives of GIDC attend as invitee members.

What else does the yojana offer alongside the plot?

An SC or ST entrepreneur who takes a GIDC plot under component 10 is usually also planning the machinery purchase and the loan. Other components of the same resolution cover that: capital investment subsidy on the term loan, interest subsidy of 6% to 8% depending on location, assistance for technology acquisition, ERP and ICT assistance, and rent assistance for units working out of rented industrial premises. A parallel component, number 11, covers multi-storeyed sheds developed by GIDC on the same 70:30 basis, and component 12 covers sheds built by private developers.

The general conditions of the resolution apply across components: at least 85% of total employment and 50% of supervisory and managerial staff must be local persons, annual information on production, sales, turnover and employment must reach the DIC before the end of September, pollution control measures prescribed by the Gujarat Pollution Control Board must be followed, and 5% of assisted enterprises are picked for random verification each financial year.

Why do cases fail?

• Ownership diluted below 100% SC/ST, often after a new partner is admitted.
• Trading activity proposed on an industrial plot.
• Plot larger than 1,000 sq m without the irregular-layout exception.
• Production not commenced within the operative period of the scheme.
• Breach of GIDC allotment conditions, since the allotment continues to be governed by the corporation's own terms of allotment and maintenance.
• Grant not available in the year of the claim, which delays rather than denies the disbursement.

Key dates and current status

Bharat Ratna Dr. Babasaheb Ambedkar Udyog Uday Yojana came into force from 1 April 2017 and the published resolution states that it remains in operation till 31 December 2019. Applications received on and after 1 April 2017 are eligible under it. Gujarat has since moved its mainstream MSME incentives to the Aatmanirbhar Gujarat Scheme for assistance to MSMEs, notified under Government Resolution No. MIS-102022-1271(1)-I(Ch) dated 5 October 2022. An SC or ST entrepreneur planning a GIDC allotment today should therefore write to the MSME Commissionerate to confirm which resolution is currently in force for plot assistance before paying any instalment.

Where do you raise a query or grievance?

• Commissioner MSME, Udyog Bhavan, Gandhinagar 382 010 — msmeinc@gujarat.gov.in.
• Gujarat Industrial Development Corporation, Gandhinagar, for allotment, possession and maintenance issues.
• Investor Facilitation Portal helpline 1800 233 1847, working days 10:30 am to 6:10 pm.
• The State Level Implementation Committee for interpretation of any provision of the resolution.