Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy
A Gujarat government capital investment subsidy of up to ₹50 lakh for SC/ST-run manufacturing micro-enterprises, released against a term loan. Applications close on August 6, 2025.
- Funding amount
- ₹50L (subsidy)
- Funding type
- Subsidy
- Provider
- Industries and Mines Department, Government of Gujarat (Government)
- Application deadline
- Closed (6 Aug 2025)
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Dr.Babasaheb Ambedkar Udyog Uday Yojana is an umbrella scheme run by the Industries and Mines Department, Government of Gujarat. Its purpose is to build up the state's MSME sector — a segment that carries a large share of jobs, industrial output and exports — and, within that, to bring Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs into the industrial mainstream while helping MSMEs compete better globally.
One component of that umbrella is the Assistance of Capital Investment Subsidy to Micro enterprises. It is aimed at micro manufacturing units and delivers direct capital investment support, softening the financial load on an entrepreneur who is establishing or expanding a production facility.
The scheme operates from August 7, 2020 to August 6, 2025. The subsidy is linked to a term loan, is not repayable, and can reach a maximum of ₹50 lakh, with the rate and the ceiling depending on the category of taluka in which the enterprise is located.
Highlights
- Capital investment subsidy of up to ₹50 lakh
- Open to SC/ST entrepreneurs with 51% or more contribution
- For manufacturing enterprises in Gujarat
- Subsidy rate of 15% to 30% of the term loan, by taluka category
- Applications close on August 6, 2025
- Non-repayable, but released against a term loan
Who can apply
A Micro, Small or Medium enterprise in which SC/ST entrepreneurs hold a contribution of 51% or more qualifies as an SC/ST enterprise under this scheme. That threshold is the central test, and the enterprise must be engaged in manufacturing activity.
- Commercial production must have started before the subsidy can be claimed.
- The term loan must be sanctioned before commercial production begins.
- The application has to be filed online within one year of whichever of these dates falls last: the first disbursement of the term loan, the day commercial production commenced, or the GR issue date.
- In every case, the application must be submitted before the scheme's final operative date of August 6, 2025.
- If the enterprise also receives a Central Government subsidy, the state and central subsidies combined must not exceed the total loan amount that was disbursed.
Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy 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
The most recent application window for Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy closed on 6 Aug 2025. Many programmes run repeat cohorts, so it is worth checking the official site for the next round.
What the funding covers
The capital investment subsidy is worked out as a percentage of the term loan raised by the unit, and the applicable rate depends on the taluka category where the enterprise operates.
- Category 1 talukas: 30% of the term loan, subject to a cap of ₹40 lakh. Where the Eligible Fixed Capital Investment (FCI) crosses ₹10 crore, an additional ₹10 lakh is given.
- Category 2 talukas: 25% of the term loan, capped at ₹35 lakh, plus an extra ₹7.5 lakh if the Eligible FCI goes beyond ₹10 crore.
- Category 3 talukas and Municipal Corporation areas: 15% of the term loan, capped at ₹15 lakh, plus an extra ₹5 lakh if the Eligible FCI exceeds ₹10 crore.
The most favourable combination — a Category 1 location with Eligible FCI above ₹10 crore — totals a maximum of ₹50 lakh (₹40 lakh + ₹10 lakh).
This is a non-repayable subsidy, so the amount received does not have to be returned. It is, however, released against a term loan, and that loan remains the entrepreneur's own liability to the bank.
About the provider
Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy 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.
Documents you’ll need
Before you apply to Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy, 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 — ₹50L Capital Subsidy is best suited for startups in India seeking non-dilutive funding of ₹50L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much subsidy can an enterprise actually receive under this scheme?
It depends on where your unit is located and how much you invest. Category 1 talukas pay 30% of the term loan up to ₹40 lakh, Category 2 talukas pay 25% up to ₹35 lakh, and Category 3 talukas along with Municipal Corporation areas pay 15% up to ₹15 lakh. Units whose Eligible Fixed Capital Investment crosses ₹10 crore get an additional ₹10 lakh, ₹7.5 lakh or ₹5 lakh respectively, which pushes the overall ceiling to ₹50 lakh.
Who is eligible to apply for this Gujarat subsidy?
The enterprise must be one in which SC/ST entrepreneurs contribute 51% or more, and it must be a manufacturing unit. It should have begun commercial production, and the term loan must have been sanctioned before production started.
What is the last date to submit the application?
The scheme stops operating on August 6, 2025, so your application has to be in before that date. Separately, you must file online within one year of whichever of three dates comes last — the first disbursement of your term loan, the start of commercial production, or the issue date of the relevant GR.
Is this a grant, a loan, or does the government take equity?
It is a capital investment subsidy, so the amount paid is non-repayable and no stake in your business is taken. The term loan that the subsidy is calculated against is a separate borrowing that you repay to your bank.
Do I need to be in commercial production before applying?
Yes. Commercial production must have commenced for the enterprise to claim the subsidy, and your term loan needs to have been sanctioned before commercial production began.
Can I claim a Central Government subsidy as well?
Yes, you can. The only condition is that the State and Central Government subsidies put together must not add up to more than the total term loan that was disbursed to your enterprise.
What does an SC/ST enterprise mean for this scheme?
An SC/ST enterprise is one in which the contribution of SC/ST entrepreneurs is 51% or more. That level of contribution is what makes the applicant firm eligible.
Can a small or medium unit apply, or is the scheme only for micro-enterprises?
The eligibility criteria are written for Micro, Small and Medium enterprises run by SC/ST entrepreneurs, while this capital investment subsidy component is described as assistance to micro-enterprises in manufacturing. If your unit falls in the small or medium bracket, it is worth confirming your position with the Industries and Mines Department before you file.
How and where do I apply for the capital investment subsidy?
Applications are made online through Gujarat's Investor Facilitation Portal. Go to https://ifp.gujarat.gov.in/DIGIGOV/ and use the New Investor Registration option, submit the form, then verify your email through the link sent to your registered address. Log back in with your email address and password, open your account, fill in the required details and upload the mandatory business documents to complete the subsidy application. The registration page is at https://ifp.gujarat.gov.in/IC/digigov.htm?actionFlag=loadCitizenRegPage.
Is DPIIT recognition required for Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy, though having it can strengthen your application and unlock other benefits.
Who offers Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy?
Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.
How do I apply for Dr.Babasaheb Ambedkar Udyog Uday Yojana — ₹50L Capital Subsidy?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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