Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries
A Gujarat government subsidy that refunds 7% interest on term loans for 6 to 10 years to new and expanding large industrial undertakings in the state.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Industries and Mines Department, Government of Gujarat (Government)
- Application deadline
- 4 Oct 2027
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Industries and Mines Department of the Government of Gujarat runs the Aatmanirbhar Gujarat Scheme for assistance to Large Industries and Thrust Sector — an umbrella policy built around the state's heavyweight industrial base. This page deals with one arm of it, the Assistance of Interest Subsidy.
The logic behind the component is straightforward. Instead of writing an upfront cheque, the state pays back a share of the interest a company owes on its term loan, which lightens the debt-servicing load on a project.
The scheme opened on 5 October 2022 and stays in force until 4 October 2027. Large industries carry a big share of Gujarat's employment, GDP and export numbers, and the policy is meant to pull in fresh investment and keep existing units scaling up, in step with the wider Aatmanirbhar Gujarat and Aatmanirbhar Bharat goals.
Highlights
- 7% interest subsidy on term loans for eligible large industries
- Subsidy tenure of 6 to 10 years, set by Taluka category and Thrust sector status
- Annual payout up to 1% of eFCI for General industries and 1.2% of eFCI for Thrust Category 1
- Open to new large units as well as existing ones expanding or diversifying in Gujarat
- Scheme operative from 5 October 2022 to 4 October 2027
- Applications filed online via Gujarat's Investor Facilitation Portal
Who can apply
Two applicant profiles fit here. One is a brand-new large industrial undertaking setting up in Gujarat. The other is an existing large industrial undertaking that goes in for expansion and/or diversification.
A second condition is registration: the undertaking must have obtained acknowledgment or registration, as applicable, from DPIIT.
There is also a timing rule. Commercial production has to begin during the scheme's operative period, that is between 5 October 2022 and 4 October 2027.
Since this is a state-level programme run by the Industries and Mines Department, the project has to be based in Gujarat.
Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
Applications for Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries are open and the current deadline is 4 Oct 2027. Deadlines can change — always reconfirm on the official source before submitting.
What the funding covers
The core incentive is an interest subsidy of 7% on term loans taken by the eligible undertaking.
Tenure is not fixed. It stretches from 6 to 10 years, and which end of that range applies depends on the category of Taluka the unit sits in and on whether the industry is classified as a Thrust sector.
A yearly ceiling applies on top of the rate:
- General category industries: up to 1% of eligible Fixed Capital Investment (eFCI) per year.
- Thrust Category 1 industries: up to 1.2% of eFCI per year.
By absorbing part of the loan interest, the scheme eases the financing burden on new plants, capacity additions and diversification projects across the state.
About the provider
Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries is offered by Industries and Mines Department, Government of Gujarat, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
Every application arrives through Gujarat's Investor Facilitation Portal (IFP), after which the Industries and Mines Department takes over.
- The department verifies the submission and checks the undertaking's eligibility along with the project details against the scheme guidelines.
- Disbursal of the interest subsidy follows only once the stipulated conditions are met and the unit has started commercial production.
Documents you’ll need
Before you apply to Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
What does the Assistance of Interest Subsidy actually give an industry?
It refunds a portion of the interest a large industrial undertaking pays on its term loan, which brings down the overall financing burden on a project. It works as a subsidy rather than a loan or an equity investment.
How much is the interest subsidy?
The subsidy rate is 7% on term loans. On top of that, the yearly payout is capped at up to 1% of eligible Fixed Capital Investment (eFCI) for General category industries and up to 1.2% of eFCI for Thrust Category 1 industries.
For how many years can an industry claim this subsidy?
Between 6 and 10 years. The exact tenure depends on the category of Taluka where the unit is located and on whether it belongs to a Thrust sector.
Who is eligible to apply?
A new large industrial undertaking in Gujarat, or an existing large industrial undertaking that is expanding and/or diversifying. The unit must hold DPIIT acknowledgment or registration, and it must start commercial production between 5 October 2022 and 4 October 2027.
Is DPIIT registration compulsory for this scheme?
Yes. The undertaking needs acknowledgment or registration from DPIIT, as applicable, to qualify under this scheme.
Does the Gujarat government take equity in my company for this subsidy?
No. This is a subsidy that reduces the interest owed on a term loan, so there is no equity dilution involved.
What is the deadline to apply?
The scheme remains operative until 4 October 2027, having started on 5 October 2022. Both the application and the start of commercial production need to fall within that window.
How do I apply for the interest subsidy?
Apply online through Gujarat's Investor Facilitation Portal (IFP). You begin with a new investor registration, submit the form, verify your email using the link sent to your inbox, then log back in with your registered email address and password. Once inside your account, you complete the application form.
Which documents do I need to submit?
The final step of the online application asks you to fill in all required details and upload the mandatory documents about your business, which completes the submission on the portal.
Is this scheme open to all types of businesses, and does it cover the whole country?
No on both counts. It is meant specifically for large industrial undertakings, so small units and other business types fall outside its scope, and it applies only to projects in Gujarat since it is a scheme of the Industries and Mines Department, Government of Gujarat.
Who offers Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries?
Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.
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Not sure Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries is the right fit, or already applied? These are other subsidies open to Indian startups that founders shortlist alongside it.
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