Industries and Mines Department, Government of Gujarat
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Dr. Babasaheb Ambedkar Udyog Uday Yojana: 70% Shed Subsidy for SC/ST MSEs — Frequently Asked Questions

FAQ

Answers to the questions founders most often ask about Dr. Babasaheb Ambedkar Udyog Uday Yojana: 70% Shed Subsidy for SC/ST MSEs — who qualifies, the funding amount, required documents and how the application works.

Frequently asked questions

What exactly is the Dr. Babasaheb Ambedkar Udyog Uday Yojana, and who runs it?

It is an umbrella programme of the Industries and Mines Department, Government of Gujarat, aimed at building up the state's MSME sector. The component described here, "Assistance to MSEs for Shed Developed by Private Developer", is the part of the programme that helps SC and ST entrepreneurs buy industrial sheds in privately developed mini estates. The overall programme started on 7 August 2020 and is valid until 6 August 2025.

How much does the scheme actually pay towards the shed?

The government covers 70% of the shed price. The SC/ST entrepreneur pays the other 30% to take possession. That is the headline benefit of this component, and it applies to the cost of acquiring the shed in a government-approved mini estate.

Who is eligible to apply?

The applicant must be a Micro, Small or Medium enterprise run by a promoter from the Scheduled Caste or Scheduled Tribe community. For the firm to qualify as an SC/ST enterprise, SC/ST entrepreneurs must hold a contribution of 51% or more. The shed being purchased also has to be located in a government-approved mini estate and must have been developed by a private developer.

What does "SC/ST enterprise" mean for this scheme?

It refers to an enterprise in which the contribution of SC/ST entrepreneurs is 51% or more. Meeting that threshold is what makes the firm eligible for the subsidy under this component.

Does the money come to me, or to the developer?

It is disbursed to the developer. The release is phased — 35% is paid after the sale is completed, and the remaining portion follows once production commences at the unit. For the entrepreneur, the practical effect is that only the 30% share has to be arranged to obtain possession.

Where must the industrial shed be located?

The shed must sit inside a mini estate that has received government approval. Sheds outside an approved mini estate do not qualify for assistance under this component.

Is there a deadline I should be aware of?

Yes. The scheme is in force from 7 August 2020 to 6 August 2025, and applications are accepted during that period. The listed closing date for this component is 6 August 2025.

How do I apply?

Applications are made online through the Gujarat government's Investor Facilitation Portal (IFP) at https://ifp.gujarat.gov.in/DIGIGOV/. You begin with "New Investor Registration" and complete the registration form, then verify your email ID through the link sent to your registered address. After logging in with your registered email and password, you fill in the required business details and upload the supporting documents about your enterprise. Helpdesk contact details are available on the portal if you need assistance.

How are applications evaluated?

The Industries and Mines Department, Government of Gujarat, reviews each application. It verifies the promoter's SC/ST status, the enterprise's classification as Micro, Small or Medium, the SC/ST contribution of 51% or more, the location of the shed within a government-approved mini estate, and that the entrepreneur's 30% contribution requirement is met. Applications clearing these checks are selected.

Does the scheme take equity in my business?

No. This is a subsidy, so it does not dilute your ownership. The government's contribution goes towards the cost of the shed and is released to the developer, leaving the promoter's stake in the enterprise untouched.

Is DPIIT recognition required for Dr. Babasaheb Ambedkar Udyog Uday Yojana: 70% Shed Subsidy for SC/ST MSEs?

No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Dr. Babasaheb Ambedkar Udyog Uday Yojana: 70% Shed Subsidy for SC/ST MSEs, though having it can strengthen your application and unlock other benefits.

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