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Revised GR 01 04 2017 08112017
Revised GR 01 04 2017 08112017
Revised GR 01 04 2017 08112017
Government of Gujarat
lndustries and Mines Department,
Sachivalaya, Gandhinagar.
Resolution No.MSM-102O17-688-Ch
Dated:24/7O/20t7.
Read :
Preamble:-
The industrial polialof 2015 aims at promotion of ,Gujarat' as a globally competitive and
innovative industrial destination that stimulates sustainable
development and inclusive
growth. Make in lndia is also a major national initiative,
devised to transform lndia into a
global design and manufacturing hub. This initiative
will boost the primary mission of the
lndustrial policy 2015 which incrudes the proactive support
for the Deveropment of
MSMEs in the state. During the imprementation of
the scheme, it is observed that MsME
sector needs more support to invite more investment in MSME
sector as it prays very
important role in terms of economy and employment generation.
Resolutionr
1.0 Definitions
fl}
of lndia, introduction of new provision from time to time,
as amended/ revised/
and having acknowledgement of Entrepreneurs' Memorandum /Udyog Aadhaar'
1,5 Modernization:
Existing MSMES carrying out modernization by way of adopting new technology/
production process and/or improving quality of products with an investment of
more than 25% ol its existing Sross fixed capital investment in plant and
machinery on the date of initiating modernization and commencing production of
said modernization during operative period of the scheme shall be termed as
modernization. only one modernization will be eligible for assistance during the
operative period of the scheme.
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under this scheme. The loan sanctioned and disbursed on second hand assets will
not be eligible for incentives under this scheme.
1,9 Eligibility:
An enterprise which has obtained first disbursement of term loan on or after
O7/04/2OL7 and commenced commercial production during operative period of
the scheme, shall be eligible for Capital tnvestment Subsidy under this scheme.
The enterprise which has obtained first disbursement of term loan before
O1/O4/20L7 shall be considered eligible under GR SSt/102014/924940/CH Ot.
19.01.2015 subject to condition that the enterprise commences commercial
production bel orc 3t/ 3 / 2OL8.
2.2.1 For lnvestment from Rs.50 lakhs up to Rs.2 Cror€ in plant and Machineries:
i. Capital lnvestment Subsidy@ LZ % of term loan amount disbursed by Bank/
Financial lnstitute with the maximum amount of Rs. 15 lakhs in Municipal
Corporations area.
ii. Capital lnvestment Subsidy@ 17 % ol tetm loan amount disbursed by Bank/
Financial lnstitute with the maximum amount of Rs. 25 lakhs in other area
outside the municipal corporationd area.
2.3 For lnvestment from Rs.2 Crore up to Rs.lO Crore in plant and Machineries:
a) Capital lnvestment Subsidy@ LO % of loan amount disbursed by Bank/
Financial lnstitute with the maximum amount of Rs. 15 lakhs in Municipal
Corporations area.
b) Capital lnvestment Subsidy @ tS % of loan amount disbursed bV Bank/
Financial hstitution with the maximum amount of Rs.25 lakhs in other areas
outside the municipal corporations, area.
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c) Capital lnvestment subsidy will be paid only after commencement of
commercial production of the enterprise.
d) The enterprise will be eligible under this scheme, if term loan is sanctioned
after one year from the date of commencement of commercial production or
before expiry of this scheme whichever is eadier
e) Total quantum of capital investment subsidy (State + Central) in any case
should not exceed the total loan amount disbursed by Bank/ Financial
institution.
f) Enterprise will have to remain in production for 5 years from the date of
commercial production and if it fails to continue production for five years
then amount of capital investment subsidy disbursed will be recovered as
arrears of land revenue.
ii. lnterest subsidy @ 7% with the maximum amount of Rs. 30 lakhs per
annum for period of 5 year for in the other areas outside the municipal
corporations' area.
vi. Only new MSME of Service sector as listed in Annexure -1 will be eligible
for lnterest subsidy @5% with the maximum amount of Rs. 25 lakhs per
annum for 5 years on the term loan of machinery and equipment
anywhere in the state.
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c. Late submission of application
will be considered subject to deduction of late
submission periodafter commercial production and deduction of
proportionate amount of interest subsidy from maximum ceiling.
d. Reimbursement of interest subsidy will be made only after commencement
of commercial production of the enterprise.
e. The enterprise will not be eligible for interest subsidy under this scheme if,
term loan is sanctioned after one year from the date of commencement of
commercial production.
f. lf the enterprise becomes defaulter in payment of interest or instalment of
term loan to Bank/Financial institution as per guidelines of RBl, such
default period will be deducted from the period of five years.
g. lnterest subsidy will not available for penal interest or any other charges.
h. Total quantum of interest subsidy (State + Central) in any case shall not
exceed the total interest paid to Bank/ Financial institution.
i. Enterprise will have to remain in production for 5 years from the date of
commercial production
3,2 General conditions applicable to capital lnvestment subsidy and lnterest subsidy
(-.F 5
4.0 Assistance for venture Capitalr
a) The entrepreneur setting up an MSME with innovative technology will be
assisted to raise promoter contribution in the form of equity or loan.
b) The entrepreneur shall apply to lndustries commissioner along with project
details of innovative technology.
c) The GVFL will consider extending support to such entrepreneur to formulize
the project and preparation of project report.
d) MSME commissioner will appoint a technical committee to scrutinize the
proposal in consultation with GVFL.
e) GVFL will appraise the project and extend support to get loan from
commercial bank.
f) The Assistance as promoter's contribution will be @20% of project cost
maximum up to Rs. 50 Lakhs.
g) GVFL will release this assistance from the fund placed as disposal of GVFL by
MSME Commissioner.
h) GVFL will create a separate fund for this scheme.
i) The Assistance for Venture capital through GVFLwould be subject to specified
guidelines to be worked out and get approved.
5.3 5O% of all charges including consultancy fee up to a maximum amount of Rs.
5O000 paid for obtaining ISO certification. No assistance will be given for
expenditure incurred on the testing equipment/machineries under ISO
certification.
5.4 50/' ol all charges upto a maximum amount of Rs. 5 lakhs paid for obtaining of
each certification for tSt/WHO-GMp/Hallmark certifications & other
national/lnternational certification approved by euality Council of lndia.
5.5 50"/o of fee payable to Recognized lnternational certification Authority and sv/o
cost of terting equipment and machinery required for that certification, totalling
up to maximum amount of Rs. 10 lakhs.
5.6 The cost for certificate will include:-
5.6.1 Fees charged by certification agency (excruding travel, hotel & surveillance
charges)
5.6.2 Cost of testing equipment and machinery as required for certifications
5.6.3 Calibration charges of equipment
5,7 MSME will not be eligible if any certification referred at 5.3 to 5.5 above are
required as part of statutory provision.
5.8 MSME in the manufacturing sector will be eligible for the assistance.
(Tb ,7
5.9 This Quality certification scheme will be supplementary to such scheme of
Government of tndia. However, in no case total assistance from GOG and GOI
should exceed more than actual expenditure incurred by MSME for said purpose.
5.10 The testing equipment and machinery purchased after the issuance of Quality
certificate shall not be eligible for assistance.
5.11 Expenditure incurred for renewal of certificate shall not be eligible for assistance
under the scheme.
b). For investment from Rs.sO lakhs up to Rs.2 Crore in Plant and
Machineries:
Assistance for the acquisition of appropriate technology from recognised
institution by MSME for its product/ process during the operative period
of the scheme will be @ 60% of the cost payable to the institution,
maximum pf Rs. 50 lakh, including royalty payment for first two years.
c). For lnvestment from Rs. 2 Crore up to Rs' 10 Crore in Plant and
Machineries:
Assistance for the acquisition of appropriate technology from recognised
institution by MSME for its product/ process during the operative period
of the scheme will be @ 50% of the cost payable to the institution,
maximum of Rs. 50 lakh, including royalty payment for first two years.
6.1 Conditions:
a) MSME shall have to obtain prior approval of MSME Commissioner after
signing MoU with Technology provider.
b) Assistance available to set up a new enterprise with new
will be
technology. Existing enterprise will also be eligible for new product or for
improvement of production process.
c) Assistance will not be eligible for purchase of any plant and machinery or
equipment.
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expenditure (excluding travel, hotel charges) for obtaining patent
registration.
d) The Assistance will be disbursed after the publication / notification of the
patent.
e) Applicant shall have to submit application within one year from the date of
publication / notification of the patent.
f) Application submitted after one year from the date of publication /
notification will not be eligible for assistance.
The existing as well as new enterprise taking action for saving in consumption of
Energy and Water will be eligible for assistance under this scheme.
a) 75% cost of energy / water audit conducted by a recognized institution /
consultant subject to maximum Rs. 50,000/- for each will be reimbursed once
during the operative period of the scheme.
b) 25% oI cost of equipment recommended by the auditing authority subject to
maximum Rs 20 lakhs one time assistance will be eligible during the operative
period of the scheme
c) The assistance on cost of equipment will be eligible subject to the condition that
saving in energy / water minimum by !0o/o ol average monthly consumption of
previous 12 months before audit.
d) Even after taking all steps as mentioned above for efficient use of energy / water,
if consumption is increasing with reference to increase in production than such
claim will be examined separately by the committee to be constituted by MSME
Commissioner.
9.0 Assistance to SME for raising Equity capital through SME Exchange
Ot I
10,0 Assistance for Reimbursement of CGTMSE fee.
10.1 Conditions:
a) The MSE has apply to concerned District MSME Centre in prescribed
to
Application Form on sanctioning of the Term loan from Bank/Fl under the
Credit Guarantee Scheme of CGTMSE within one year from the date of first
disbursement of Term loan or on or before the date of commencement of
commercial production, whichever is later.
b) The assistance will be disbursed with lnterest subsidy once in a year.
c) The service activity and trading activity will not be eligible under the scheme'
d) The detailed standard of procedures and guidelines for giving assistance in the
Credit Guarantee Scheme of CGTMSE would be provided by the MSME
Commissionerate office and will be final and binding to all the concerned
stakeholders.
a) MSME Sick lndustrial enterprise satisfying the criteria of sick enterprise as per
the RBI guidelines will apply to MSME commissionerate for Sick Enterprise
registration.
b) MSME Commissioner will scrutinize the application on the basis of the
balance sheets.
c) After scrutiny of the application sick enterprise registration will be issued.
d) This registration issued by MSME Commissioner shall only indicate that the
enterpriseissickasperRBlguidelineanddoesnotqualifyforanyassistance
or oTS from state Government. However the sick enterprise may be assisted
by banks/financial institutions as per their prevailing poliry'
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e) For Preparing the diagnostic report from expert / expert agency and
expenditure thereof will be reimbursed @5O% of cost of Draft Rehabilitation
Scheme as assistance subject to maximum of Rs. 1 lakh to sick enterprise.
Lz.t Eligibility:
MSME, located in other than GtDC/approved industrial park area, which has paid
charges to distribution licensee, for new connection or for gefting additional load
in case of existing consumer (in case of expansion) or for shifting of connection or
service line, will be eligible for assistance under the scheme.
12.3 Conditions:
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13,1 Sanction and disbursement of assistance with verification on proposals under
scheme no. 2,3,5,8,10 and 12 will be done by General Manager, District lndustries
Centre.
13.2 The State Level lmplementation Committee will also monitor the implementation
of all schemes including assistance sanctioned by DlCs.
13.3 Sanction and disbursement of assistance with verification on proposals under
scheme no.4,6,29, and 11 will be done bythe office of MSME Commissioner.
13,4 State Level lmplementation Committee is authorized for interpretation of any
provision and to give clarification / decision with reference to any provision under
this resolution, keeping in view the objective of the scheme and it will be final &
binding to all the concerned.
14. Genenl Conditions:
a) The effective date of implementation of the scheme would be from
OtlO4l2OLT with issuance of the Government Resolution.
b) Application received on and after the date 0llM/2oL7 is eligible to get the
assistance.
c) For all the above schemes, random verification of 5% of the total assisted
enterprises to be carried out in a financial year. This is to be done in addition
to the regular inspection and verification carried out before claim
disbursement.
15.0 Budget Provision: The expenditure on this account will be met from the
sanctioned grant of the respective financial year under the following budget
head:
Budget Head
Demand No. 49 Major
Head 2851, Village & Small lndustries
102-(16) IND-1 - Financial Assistance to lndustries
3135 Grant in Aid (C) others
issued with the concurrence of Finance Department dated
This G. R. is
tGhOl2OLT received on the even number file of this Department.
afAh,--
(Anand Bihola)
Deputy secretary
lndustries and Mines DePartment
Copy to
1 Secretary to Hon'ble Governor of Gujarat'
ncipal Secretary to Hon. Chief Minister'
3 Personal Sec.etary to all Hon. Ministers
4 Deputy Secretary to chief secretary
5 Additional chief secretary, Finance Department
5 Personal Secretary to P.S. l&M.
7 lndustries Commissioner, Gandhinagar
8 VC & MD, GIDC, Gandhinagar
9 commissioner MSME, Gandhinagar
10 Accountant General Rajkot/Ahmedabad.
11 Select File.
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Annexure -1
List of eligible services activities
(G.R. No. MSM-102017-688<h, Dt.24l tOlzOL7.l
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