Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges
A Gujarat government subsidy that reimburses 50% of power connection charges, up to ₹5 lakh, for SC/ST-led MSMEs located outside GIDC and approved industrial park areas.
- Funding amount
- ₹5L (subsidy)
- Funding type
- Subsidy
- Provider
- Industries and Mines Department, Government of Gujarat (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
Dr. Babasaheb Ambedkar Udyog Uday Yojana is an umbrella initiative of the Industries and Mines Department, Government of Gujarat, created to widen MSME ownership among entrepreneurs from Scheduled Caste and Scheduled Tribe communities. Its notified window runs from 7 August 2020 to 6 August 2025, and support is delivered as a reimbursement rather than an upfront grant.
The "Assistance for Power Connection Charges" component deals specifically with electricity infrastructure. Bringing power to a new unit, raising the sanctioned load for expansion, or shifting an existing line all cost money before a single product is made. Under this component, the state shares that cost with the enterprise.
The scheme sits within Gujarat's broader effort to make its MSME sector more inclusive and competitive. Because the support is a reimbursement against charges already paid to the distribution licensee, an entrepreneur funds the connection first and then claims back the eligible share.
Highlights
- Reimburses 50% of power connection charges paid to the distribution licensee
- Maximum support of ₹5,00,000 per enterprise
- Only for SC/ST-led MSMEs with 51% or more SC/ST contribution
- Unit must be located outside GIDC areas and approved industrial parks
- Claim must be filed within one year of paying the charges
- Applied online through the Gujarat Investor Facilitation Portal (IFP)
Who can apply
The applicant must be a micro, small or medium enterprise in which an SC/ST entrepreneur holds 51% or more of the contribution — whether through equity or ownership.
Location matters. The unit has to be situated outside GIDC areas and approved industrial parks. Enterprises located inside those zones are not covered by this component.
The enterprise must have actually incurred the expense: charges paid to a distribution licensee for a new power connection, for an increase in sanctioned load, or for shifting a connection or service line.
Timing is a hard condition. The reimbursement claim has to be filed within one year from the date the charges were paid to the distribution licensee.
Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges 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
Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges 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.
What the funding covers
Eligible enterprises get back 50% of the charges they have paid to an electricity distribution licensee, subject to a ceiling of ₹5,00,000.
Spends that fall within this component:
- A new Low Tension (LT) or High Tension (HT) power connection
- Additional load taken on for business expansion
- Shifting of an existing connection or service line to a different location
This is a subsidy, not a loan and not an equity investment — nothing is repaid and no stake in the business is taken. The approved amount reaches the enterprise's bank account after verification.
Practically, the money acts as capital expenditure relief on utility infrastructure, which is often one of the first significant outlays an SC/ST founder faces before the unit can begin operations.
About the provider
Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges 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
Applications are filed online through the Investor Facilitation Portal (IFP) of the Government of Gujarat. The flow is:
- New Investor Registration — open the portal, click on 'New Investor Registration', fill in the registration form and submit it.
- Email verification — confirm your email address using the link sent to your registered ID; registration is complete only after this step.
- Login — return to the portal, click 'Login' and sign in with your registered email address and password.
- Application submission — enter the required business details and upload the mandatory documents to file the power connection charges claim.
Once submitted, the department verifies the application against the scheme guidelines. The check covers enterprise registration, the SC/ST ownership share, the location of the unit outside a GIDC area or approved industrial park, and proof of payment of the power connection charges.
If the claim clears verification, the approved reimbursement is credited directly into the enterprise's bank account.
Documents you’ll need
Before you apply to Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges, 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.
Who this is best for
Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges is best suited for startups in India seeking non-dilutive funding of ₹5L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much funding does the power connection charges component give?
You can claim back half of what you paid the distribution licensee, capped at ₹5,00,000. So if your eligible charges are ₹6 lakh, the reimbursement works out to ₹3 lakh; if they are ₹20 lakh, you receive the full ₹5 lakh ceiling.
Which power-related expenses are covered?
Three kinds of spend qualify: charges for a brand new Low Tension (LT) or High Tension (HT) power connection, charges for increasing your existing load when you expand, and charges incurred in shifting a connection or service line to another location.
Who is eligible to apply?
Your unit must be a micro, small or medium enterprise, an SC/ST entrepreneur must hold 51% or more of the contribution, and the enterprise has to be located outside GIDC areas and approved industrial parks.
What counts as an SC/ST enterprise for this scheme?
It is an enterprise where the contribution of the SC/ST entrepreneur or entrepreneurs — whether measured as equity or ownership — is 51% or more. Anything below that threshold does not meet the definition.
Is there an application deadline?
The scheme runs on a rolling basis, so there is no fixed last date to register. Two time limits do apply, though: the notified scheme window lasts until 6 August 2025, and your reimbursement claim must be submitted within one year of the date you paid the charges to the distribution licensee.
Does the scheme take equity in my company?
No. This is a subsidy paid as a reimbursement against charges you have already incurred. No equity is diluted and no repayment is required — the approved amount is simply transferred to your enterprise's bank account.
Can an enterprise located inside a GIDC area apply?
No. Units situated within Gujarat Industrial Development Corporation areas or any approved industrial park fall outside this component. Only enterprises operating outside those zones can claim the reimbursement.
How do I apply for the reimbursement?
Applications go through the Gujarat government's Investor Facilitation Portal (IFP). You first create a new investor registration, verify your email address through the link sent to you, log back in with your registered email and password, and then fill in your business details and upload the mandatory documents to submit the claim.
What happens after I submit the application, and how is the money paid?
The department reviews the claim and verifies the documents and details against the scheme guidelines — enterprise registration, SC/ST ownership, location outside GIDC or an industrial park, and proof of payment of the power connection charges. If the claim clears this check, the approved reimbursement is credited straight into your enterprise's bank account.
What documents do I need to submit?
The portal asks you to enter your business details and upload the mandatory documents it specifies. Since eligibility turns on having paid the distribution licensee, your proof of payment of the power connection charges is the central record the department examines during verification.
Is DPIIT recognition required for Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges, though having it can strengthen your application and unlock other benefits.
Who offers Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges?
Dr. Babasaheb Ambedkar Udyog Uday Yojana — ₹5L for Power Connection Charges is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.
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