Aatmanirbhar Gujarat Scheme: ₹1 Lakh Aid for Sick MSMEs

The Industries and Mines Department of the Government of Gujarat runs the Aatmanirbhar Gujarat Scheme for MSMEs, a set of support measures aimed at keeping the state's micro, small and medium manufacturing base strong. This component of it — Rehabilitation of Sick Enterprise — is reserved for units that have fallen into financial distress and need help working out how to recover.

The scheme stays open from October 5, 2022 to October 4, 2027. Within that window it absorbs part of what a struggling MSME spends on getting a professional diagnosis of its troubles, along with a written plan for turning the business around.

MSMEs carry a large share of Gujarat's employment, output and exports, and the programme is tied to the wider Aatmanirbhar Gujarat and Aatmanirbhar Bharat objectives. Instead of funding routine operations, the scheme targets the earliest — and often the costliest — stage of a turnaround: paying an expert to produce the diagnostic report and the Draft Rehabilitation Scheme that advisors and lenders depend on.

By sharing that cost and adding a lump-sum grant, the programme gives sick units a real chance to pinpoint what went wrong, restructure, and continue contributing to the state's industrial economy.

• 50% of the cost of the diagnostic report and Draft Rehabilitation Scheme reimbursed
• Financial assistance of up to ₹1,00,000
• Only for MSMEs classified as sick under RBI guidelines
• Gujarat scheme; operative from October 5, 2022 to October 4, 2027
• Applications accepted on a rolling basis — no fixed last date
• Applied online through the Investor Facilitation Portal

Your unit has to be a Micro, Small or Medium enterprise, and it must hold acknowledgement or registration from the Ministry of MSME or DPIIT, whichever applies in your case.

The remaining conditions are:

• The enterprise should be a new manufacturing unit, or an existing one going in for expansion or diversification.
• Commercial production must have begun inside the scheme window of October 5, 2022 to October 4, 2027.
• The unit must qualify as a sick industrial enterprise under Reserve Bank of India norms.
• The diagnostic report that supports your case must be prepared by an expert or an expert agency.
• The application must be filed while the scheme is in force.

Aatmanirbhar Gujarat Scheme: ₹1 Lakh Aid for Sick MSMEs is open to startups at any stage. It is open to startups registered anywhere in India.

Aatmanirbhar Gujarat Scheme: ₹1 Lakh Aid for Sick MSMEs accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Two forms of support are offered to sick MSMEs.

• Half the cost of preparing the Draft Rehabilitation Scheme and the diagnostic report is reimbursed.
• A financial assistance of up to ₹1,00,000 is provided during the operative period of the scheme.

The reimbursement lowers the entry cost of bringing in expert assessment, while the assistance amount can be directed towards pressing operational expenses or the first moves of the revival plan.

This is a state subsidy, not a loan product and not an investment, so the enterprise does not repay the money or surrender any ownership in return. Both benefits sit within the same component, which is focused squarely on the recovery needs of a distressed unit.

Aatmanirbhar Gujarat Scheme: ₹1 Lakh Aid for Sick MSMEs 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.

Every application reaches the Industries and Mines Department through the Investor Facilitation Portal. It is first screened for completeness and for whether it clears the basic eligibility conditions.

Applications that get past screening are placed before a designated committee of the Industries and Mines Department, Gujarat. The committee weighs two things: whether the enterprise really is sick as defined under Reserve Bank of India guidelines, and whether the rehabilitation plan it has put forward is workable.

The decision on reimbursing the diagnostic costs and releasing the financial assistance follows that evaluation, which means support is routed to units whose prospects of a successful turnaround look credible.

Before you apply to Aatmanirbhar Gujarat Scheme: ₹1 Lakh Aid for Sick MSMEs, 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.

Aatmanirbhar Gujarat Scheme: ₹1 Lakh Aid for Sick MSMEs is best suited for startups in India seeking non-dilutive funding of ₹1L. If that describes your startup, review the eligibility criteria above before applying.