Aatmanirbhar Gujarat Scheme for assistance to MSMEs: Assistance for Reimbursement of CGTMSE Fees

What is the CGTMSE fee reimbursement under the Aatmanirbhar Gujarat Scheme?

Assistance for Reimbursement of CGTMSE Fees is Scheme-12 within the Aatmanirbhar Gujarat Scheme for assistance to MSMEs, notified by the Industries and Mines Department, Government of Gujarat, through Government Resolution No. MIS-102022-1271(1)-I(Ch) dated 5 October 2022. The umbrella scheme is operative from 5 October 2022 to 4 October 2027, that is, five years from the date the resolution was issued.

The component exists because of a specific cost that small borrowers face. The Government Resolution records that the Government of India instructed financial institutions to sanction collateral-free loans up to Rs 2 crore by charging an additional fee on such loans. That fee is the CGTMSE guarantee fee, and it is charged by the bank to the borrower every year. Gujarat's answer is to refund it.

What the scheme pays

• 100% reimbursement of the annual service fee paid to the bank or financial institution by the entrepreneur for availing a collateral-free term loan under CGTMSE.
• The reimbursement runs for a period of five years.
• The GR records the fee structure the reimbursement is measured against: first year 1.8% plus risk premium, and 0.85% from the second year onwards, or as amended by the CGTMSE trust or the RBI from time to time.

Because the reimbursement is a percentage of the guarantee fee rather than a flat grant, the money involved scales with the loan. On a Rs 1 crore collateral-free term loan, an annual guarantee fee of 0.85% is Rs 85,000 a year, which is the kind of running cost this component is designed to take off a micro or small enterprise's books.

Who is eligible for the CGTMSE fee reimbursement in Gujarat?

An enterprise can claim if:

• It is a micro or small enterprise (MSE). The Government Resolution defines micro as fixed capital investment in plant and machinery of up to Rs 1 crore, and small as more than Rs 1 crore and up to Rs 10 crore.
• It has obtained acknowledgement or registration from the Ministry of MSME or DPIIT, in practice, a valid Udyam registration.
• It is an enterprise in the GR's sense: a company, a partnership firm including an LLP, a society, a trust, an industrial cooperative society or a proprietary concern.
• It has taken a collateral-free term loan sanctioned under the Credit Guarantee Scheme of CGTMSE from a bank or financial institution, and is actually paying the annual guarantee service fee.
• It is engaged in manufacturing.

An enterprise is not eligible if:

• It is a trading business. The GR states expressly that trading activity is not eligible under this component.
• It is a service enterprise. Service activity is also excluded from Scheme-12, even though several other components of the Aatmanirbhar Gujarat MSME scheme do cover the eligible service activities listed in Annexure A of the resolution.
• It is a medium enterprise. The component is written for MSEs, that is, micro and small enterprises.
• Its loan is not under the CGTMSE guarantee, or is a collateralised loan. No guarantee fee means nothing to reimburse.
• It applied late, that is, more than one year after the first disbursement of the term loan and after the date of commencement of commercial production.
• It is availing incentive for the same purpose under another State Government scheme. Under the GR, an enterprise eligible under this scheme or any other sector-specific state incentive scheme may opt for either, not both, unless specifically provided.

Enterprises that had opted in under the earlier scheme are not left out: the GR allows eligible enterprises opting under its para 7.2 to claim assistance for expenditure incurred in this regard during the operative period of the previous scheme, up to the date of issue of this GR.

What documents are required?

How to apply for the CGTMSE fee reimbursement in Gujarat

1. Get your Udyam registration in order first. Without acknowledgement or registration from the Ministry of MSME or DPIIT, the application does not qualify at the first scrutiny.
2. Take the collateral-free term loan under CGTMSE from your bank or financial institution, and obtain the sanction letter that names the Credit Guarantee Scheme.
3. Note the date of first disbursement of the term loan. Your application window is one year from that date, or up to the date of commencement of commercial production, whichever is later.
4. Register on the Investor Facilitation Portal at ifp.gujarat.gov.in, which the MSME Commissionerate lists as the route to apply for incentive schemes, and open the Aatmanirbhar Gujarat Scheme for assistance to MSMEs application.
5. Fill the application and attach the checklist documents; sanction letter, fee payment proof, constitution papers, PAN, cancelled cheque, board resolution and the undertaking on other assistance.
6. Submit the application to the concerned District Industries Centre, which is the office named in the GR for this component, and keep the acknowledgement.
7. Respond to DIC scrutiny queries quickly. The GM-DIC is the sanctioning and disbursing authority and will raise queries on the loan documents before sanction.
8. Claim each year's fee, since reimbursement runs for five years and is released once a year along with the interest subsidy.

How to apply offline

1. Visit the District Industries Centre of the district where the manufacturing unit is located.
2. Collect the application form and checklist for the Aatmanirbhar Gujarat Scheme for assistance to MSMEs, or download them from the MSME Commissionerate page at msmec.gujarat.gov.in.
3. Submit the signed and stamped application with self-certified copies of the checklist documents, page-numbered as the checklist requires.
4. Collect the inward acknowledgement with the date, which is what proves you applied inside the one-year window.

How is the money paid, and when?

The GR states two things clearly about payment. First, the assistance will be disbursed with the interest subsidy once in a year, so an enterprise claiming both interest subsidy and CGTMSE fee reimbursement receives them together on the annual cycle rather than fee by fee. Second, the detailed standard operating procedures and guidelines for this component are issued by the MSME Commissionerate office and are final and binding on all stakeholders, which is why the DIC may ask for a document the GR itself does not name.

Assistance is credited to the enterprise's own bank account. There is no cash payment and no payment to the bank on the enterprise's behalf.

How to check your application status

1. Log in to ifp.gujarat.gov.in with the credentials used to file the application and open the application tracking screen.
2. Note the application or file number from the DIC acknowledgement: DIC staff track physical files by that number.
3. Follow up with the General Manager, District Industries Centre of your district for scrutiny stage and sanction status.
4. For unresolved delays, escalate to the MSME Commissioner, Gandhinagar, which supervises the schemes under this resolution.

Common reasons claims are rejected, and the fix

• Application filed after the one-year window. Diarise the date of first disbursement of the term loan the day it hits your account.
• Trading or service turnover in the applied unit. The component covers manufacturing only; keep separate books if the entity does more than one thing.
• Loan is not CGTMSE-guaranteed. Ask the bank for written confirmation that the facility is covered under the Credit Guarantee Scheme before you apply.
• Fee payment proof missing. A sanction letter proves the guarantee exists; a debit advice proves you actually paid the fee. The scheme reimburses the second.
• Double-dipping declaration missing. If the same expenditure is supported under another state scheme, the claim fails under the GR's general conditions.
• Signatory not authorised. File the board resolution or power of attorney with the first application, not after a query.

Key dates and conditions to remember

• 5 October 2022; date of GR No. MIS-102022-1271(1)-I(Ch) and start of the operative period.
• 4 October 2027 — end of the operative period of the Aatmanirbhar Gujarat Scheme for assistance to MSMEs.
• One year from first disbursement, or up to the date of commencement of commercial production, whichever is later, the application deadline.
• Five years, the period for which annual CGTMSE service fees are reimbursed.
• 18% per annum, the interest at which incentives are recovered as an arrear of land revenue if any condition of the GR is breached.

Gujarat announced the Viksit Gujarat Industrial Policy 2026 in June 2026, valid for five years from 1 June 2026. Scheme-level resolutions under that policy were still being notified when this guide was fact-checked, so confirm on ic.gujarat.gov.in which resolution governs a claim you are filing now.

Help and grievance redressal

• Office of the Industries Commissionerate, Block No. 1, 2nd Floor, Udyog Bhavan, Gandhinagar 382010 to phone 079-23252683 or 079-23252617, email iccord@gujarat.gov.in
• General Manager, District Industries Centre of your district; first point of contact for this component
• MSME Commissioner, Gandhinagar: supervisory authority for the MSME schemes under this GR
• State Level supported Committee (SLEC), chaired by the MSME Commissioner, monitors the MSME schemes

Any dispute about interpretation of the resolution is referred to the committee constituted under the chairmanship of the Chief Minister, whose decision the GR makes final and binding.