Aatmanirbhar Gujarat Scheme for Assistance to MSMEs: Assistance for Technology Acquisition

What is Assistance for Technology Acquisition in Gujarat?

Assistance for Technology Acquisition is one of the incentive components of the Aatmanirbhar Gujarat Scheme for assistance to MSMEs, the MSME limb of the Aatmanirbhar Gujarat Scheme 2022 announced by the Industries and Mines Department, Government of Gujarat. The MSME Commissionerate lists the component alongside capital investment subsidy, interest subsidy, net SGST reimbursement, quality certification, ERP, ZED certification, ICT, patent registration, energy and water conservation, SME Exchange listing support, power connection charges, rent assistance, solar power interest subsidy and EPF reimbursement.

According to the application form and checklist published by the MSME Commissionerate, the component is governed by Government Resolution No. MIS-102022-1271(1)-I(CH) dated 5 October 2022. The purpose is narrow and useful: a manufacturing MSME that buys technology from a recognised institution, rather than buying a machine, gets part of that payment back from the state, including the royalty it pays in the first two years of the agreement.

The Industries Commissionerate's published description of the same component under the earlier Gujarat Industrial Policy 2015 window described the benefit as a grant of 50% of the cost of technology acquisition, including royalty payments for the first two years, subject to a maximum of Rs 50 lakh, with plant and machinery expressly excluded. The SC/ST version of the component under Bharat Ratna Dr. Babasaheb Ambedkar Udyog Uday Yojana used investment slabs to 75%, 70% and 50% of the cost, again up to Rs 50 lakh. Enterprises applying today should read the exact slab in the 5 October 2022 resolution, because the rate structure is revised from policy to policy.

Who is eligible for technology acquisition assistance?

You can apply if:

• Your enterprise carries out manufacturing activity in Gujarat and holds Udyam, IEM or LOI registration.
• You are acquiring appropriate technology from a recognised institution for a product or a process.
• You are either a new enterprise being set up with new technology, or an existing enterprise acquiring technology for a new product or to improve the production process.
• You have signed an MoU, agreement or contract with the technology provider and obtained the prior approval of the MSME Commissioner.
• The expenditure is actually incurred and evidenced by bills and bank statements.

You cannot apply if:

• You are buying plant, machinery or equipment. Assistance is not eligible for the purchase of any plant and machinery or equipment.
• The enterprise is a trading firm or a pure service unit. The undertaking in the application form requires the applicant to confirm manufacturing activity.
• The technology was acquired before prior approval was obtained from the MSME Commissioner.
• The claim is for renewal of a certification, which the undertaking expressly excludes.
• The actual expenditure is lower than the assistance claimed. The applicant undertakes that in no case does the assistance from the state and central governments exceed the expenditure incurred.

What documents are required?

How to apply for technology acquisition assistance

1. Identify the recognised institution that will transfer the technology and agree the scope, the fee and the royalty for the first two years in writing.
2. Sign the MoU, agreement or contract with the technology provider.
3. Apply for and obtain the prior approval of the MSME Commissioner before the technology transfer begins. Under the earlier published procedure the Commissionerate prepared an agenda note for the State Level Implementation Committee and issued the sanction or rejection after the committee decided.
4. Download the application form and checklist for Assistance for Technology Acquisition from the MSME Commissionerate incentive page and fill in the enterprise details, Udyam number, date of commencement of commercial production, technology note, MoU details, royalty percentage and bank account.
5. Register on the Investor Facilitation Portal at ifp.gujarat.gov.in and submit the incentive application there, or submit the offline form with the checklist to the MSME Commissionerate at Udyog Bhavan, Gandhinagar.
6. Complete the technology transfer and pay the institution, keeping bills and a highlighted bank statement.
7. File the disbursement claim with expenditure details, the CA certificate of fixed capital investment and the technology provider report.
8. Allow the Commissionerate's verification of the claim, after which payment is processed.

How do you track the application?

Gujarat routes industrial incentive applications through the Investor Facilitation Portal, described by the state as a centralised system to monitor applications with the minimum of paperwork. After registering as a new investor you can submit the common application form, track the real-time status of the file and download scheme user manuals. The portal publishes a helpline on 1800 233 1847, available 10:30 am to 6:10 pm on working days. Scheme-level questions go to the MSME incentive branch of the Industries Commissionerate at msmeinc@gujarat.gov.in.

Why are technology acquisition claims rejected?

• No prior approval of the MSME Commissioner before the technology was acquired. This is a condition of the component, not a formality.
• The invoice is for a machine rather than for technology, know-how or royalty.
• No signed MoU with the technology provider, or an MoU that does not identify the technology and the royalty terms.
• Payment not evidenced by bills and a bank statement, or payment made in cash.
• The enterprise cannot show it is in manufacturing, or its Udyam registration shows a trading activity.
• Double funding, where the same expenditure has been claimed under a central government scheme so that the combined assistance would exceed actual expenditure.
• Missing CA certificate of fixed capital investment, which is what decides the applicable slab.

Key dates and current status

The Aatmanirbhar Gujarat Scheme 2022 was announced in three parts, for large industries and thrust sectors, for mega industries, and for MSMEs. The MSME resolution and guideline, along with the application form and checklist for each component, are published by the Industries Commissionerate and the MSME Commissionerate. The technology acquisition form and checklist cite the resolution dated 5 October 2022, and the current published forms carry a 2023 revision date. The Industries Commissionerate has separately issued clarifications on the classification of talukas for various incentive schemes and on the reconstitution of sanctioning authorities in 2024, both of which affect how incentive files are decided.

No fixed annual last date is announced for this component. What controls timing is the prior approval requirement: the approval must be in place before the technology is acquired, and the disbursement claim follows the actual payment to the institution.

Where do you get help?

• MSME Commissionerate, Udyog Bhavan, Gandhinagar 382 010 — msmeinc@gujarat.gov.in.
• Deputy Commissioner of Industries (MSME Incentive), Block 1, 4th Floor, Udyog Bhavan, Sector 11, Gandhinagar 382 017 to +91 79 23258381.
• Investor Facilitation Portal helpline 1800 233 1847 for registration, submission and tracking problems.
• The State Level Implementation Committee decides and interprets scheme provisions, and its decision is binding on applicants.