Bharat Ratna Dr. Babasaheb Ambedkar Udyog Uday Yojana: Assistance to GIDC for Developing Multi-Storied Shed in Estates

What is the multi-storeyed shed component of Dr. Babasaheb Ambedkar Udyog Uday Yojana?

Bharat Ratna Dr. Babasaheb Ambedkar Udyog Uday Yojana is the SC/ST MSME package of the Industries and Mines Department, Government of Gujarat, notified under Government Resolution No. MSM-102017-332-Ch dated 24 October 2017. Component 11 of the resolution, "Assistance to GIDC for developing multi-storeyed shed in estates", pays for built-up workspace rather than bare land.

According to the Government Resolution, the Gujarat Industrial Development Corporation allots a shed to an SC or ST entrepreneur in a multi-storeyed shed complex 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 of the shed. On payment of 30% of the allotment price, GIDC hands over possession and submits the claim for the balance to the Commissioner MSME.

The component exists because a very small manufacturer rarely needs a plot. A job-work unit doing stitching, packaging, electronics assembly or light engineering needs a serviced room with three-phase power and a goods lift, and a multi-storeyed complex delivers that at a fraction of the land cost. The resolution therefore fixes a maximum shed size of 100 sq m, that is 1,000 sq ft, and requires the structure to carry adequate infrastructure such as electricity, water, drainage and sanitation, and a lift for transport of materials and manpower.

Who is eligible for a subsidised multi-storeyed shed?

You can be considered if:

• Your unit is a micro or small enterprise under the MSMED Act, 2006, with an Entrepreneurs Memorandum or Udyam registration.
• The enterprise is owned 100% by SC or ST entrepreneurs, and any individual of Scheduled Caste or Scheduled Tribe category above 18 years of age may apply.
• The shed is in a multi-storeyed complex approved under the state government scheme referred to in the resolution.
• The shed does not exceed 100 sq m.
• The unit commences production within the operative period of the scheme.

You cannot apply if:

• The proposed activity is trading, which the resolution excludes for this component.
• The enterprise is not wholly owned by SC or ST entrepreneurs.
• The unit is medium or large, since the component is written for micro and small enterprises.
• The premises are a private shed or a rented industrial unit rather than a GIDC multi-storeyed shed. Private developer sheds are covered by component 12 and rented premises by component 13 of the same resolution.
• The claim is made directly by the entrepreneur for a cash payout, because GIDC submits the subsidy claim to the MSME Commissioner.

What documents are required?

The Commissioner MSME is supported by the resolution to prescribe the forms, the checklist and the procedure, so the operative paper set is whatever the MSME Commissionerate has published at the time of allotment.

How to apply for a GIDC multi-storeyed shed under the yojana

1. Identify a GIDC multi-storeyed shed complex approved under the state government scheme, and check availability of a shed of up to 100 sq m.
2. Apply to GIDC for allotment under its prevailing allotment policy, declaring that the enterprise is owned 100% by SC or ST entrepreneurs.
3. Submit caste certificates, Udyam registration, constitution documents and the project report so the allotment is recorded under the yojana.
4. Pay 30% of the allotment price fixed by GIDC and take possession of the shed.
5. Let GIDC file the subsidy claim of up to 70% with the Commissioner MSME.
6. Commence production within the operative period and comply with the allotment and maintenance conditions of the corporation.

How is the assistance sanctioned and paid?

Sanction and disbursement for this component sits with the office of the MSME Commissionerate, unlike capital subsidy, interest subsidy, rent assistance and market development assistance, which the District Industries Centre sanctions. The resolution states that disbursement of the assistance shall be released on availability of government grant, with expenditure met from Demand No. 95 for Scheduled Caste beneficiaries and Demand No. 96 under the Tribal Area Sub Plan for Scheduled Tribe beneficiaries.

The State Level Implementation Committee, chaired by the Commissioner MSME, monitors implementation and interprets the resolution. Its decision and interpretation are final and binding on all concerned, and GIDC attends as an invitee member.

What happens after possession?

The general conditions of the yojana continue to apply once the shed is occupied. The enterprise must employ at least 85% of its total staff and 50% of supervisory and managerial staff from local persons, furnish information on production, sales, turnover and employment to the District Industries Centre annually before the end of September, observe pollution control measures prescribed by the Gujarat Pollution Control Board, and give an undertaking that all government dues have been paid. Every financial year 5% of assisted enterprises are picked for random verification in addition to the regular inspection carried out before disbursement.

An enterprise that has taken assistance under this component is not entitled to benefit under another State Government scheme for the same purpose unless that scheme specifically allows it, though central government schemes may be availed where the state has not funded the same item.

Why do allotments or claims fail?

• Ownership below 100% by SC or ST promoters at the time of allotment.
• Trading or a purely commercial use proposed for the shed.
• Shed larger than 100 sq m, which falls outside the component.
• Production not commenced within the operative period.
• Breach of GIDC allotment and maintenance terms, such as unauthorised transfer or subletting of the shed.
• Government grant not released in the year of claim, which delays payment to GIDC rather than cancelling the entitlement.

Key dates and current status

The yojana came into force on 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's later MSME incentive framework is the Aatmanirbhar Gujarat Scheme for assistance to MSMEs under Government Resolution No. MIS-102022-1271(1)-I(Ch) dated 5 October 2022. Because built-up-space components are re-notified from policy to policy, an entrepreneur should ask the MSME Commissionerate in writing which resolution governs multi-storeyed shed assistance in the current year before paying the first 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, lift and maintenance issues in the complex.
• Investor Facilitation Portal helpline 1800 233 1847, working days 10:30 am to 6:10 pm.
• State Level Implementation Committee for interpretation of the resolution.