Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries — Frequently Asked Questions
Answers to the questions founders most often ask about Aatmanirbhar Gujarat Interest Subsidy — 7% on Term Loans for Large Industries — who qualifies, the funding amount, required documents and how the application works.
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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