Dr.Babasaheb Ambedkar Udyog Uday Yojana: Interest Subsidy up to ₹35L/Yr

The Dr.Babasaheb Ambedkar Udyog Uday Yojana is an umbrella scheme administered by the Industries and Mines Department, Government of Gujarat. It is built around the state's MSME sector — the segment that carries much of Gujarat's employment, GDP and export activity — and steers support towards SC/ST entrepreneurs so their manufacturing units can scale and compete.

The component covered here is Assistance for Interest Subsidy (Manufacturing Sector). Manufacturing enterprises that have borrowed through a term loan can claim a subsidy against the interest they pay on it, which brings down the real cost of that borrowing.

The scheme was notified to operate between 7 August 2020 and 6 August 2025, and it runs on a rolling basis — applications can be submitted online at any point rather than against a single cut-off date.

Alongside its core SC/ST focus, the scheme carries added benefits for women entrepreneurs, differently-abled entrepreneurs, registered startups and young entrepreneurs below 35 years of age, widening who can take part in Gujarat's industrial growth.

• Interest subsidy of 6–8% on term loans for manufacturing MSMEs
• Annual subsidy of ₹25 lakh to ₹35 lakh, depending on the taluka category
• Support continues for 5 to 7 years, adding up to roughly ₹1.3 crore–₹2.5 crore
• SC/ST entrepreneurs must hold 51% or more of the enterprise
• Extra benefits for women, differently-abled, startup and under-35 entrepreneurs
• Rolling applications through Gujarat's Investor Facilitation Portal (IFP)

The applicant must be a Micro, Small or Medium enterprise run by an SC/ST entrepreneur. Ownership is the deciding factor: the SC/ST entrepreneur's contribution to the enterprise has to be 51% or more.

The remaining conditions relate to the business and the loan:

• The enterprise must be engaged in the manufacturing sector.
• The term loan must be taken from a recognised bank or financial institution.
• The loan must be sanctioned before the enterprise starts commercial production.
• The enterprise must bear a minimum of 2% interest on the term loan itself.
• The application must be filed within the prescribed timeline.

Dr.Babasaheb Ambedkar Udyog Uday Yojana: Interest Subsidy up to ₹35L/Yr is open to startups at any stage. It is open to startups registered anywhere in India.

Dr.Babasaheb Ambedkar Udyog Uday Yojana: Interest Subsidy up to ₹35L/Yr 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.

The scheme provides an interest subsidy of 6–8% on term loans taken by manufacturing enterprises, which lowers the overall cost of borrowing for the unit.

The yearly ceiling and the length of support depend on the taluka category where the enterprise is located:

• Category I talukas: up to ₹35 lakh per year, for 7 years.
• Category II talukas: up to ₹30 lakh per year, for 6 years.
• Category III talukas and municipal corporation areas: up to ₹25 lakh per year, for 5 years.

Stacked over the full tenure, that comes to roughly ₹1.3 crore to ₹2.5 crore in total subsidy.

Women entrepreneurs, differently-abled entrepreneurs, startups and entrepreneurs below 35 years of age are also eligible for additional benefits under the scheme.

Dr.Babasaheb Ambedkar Udyog Uday Yojana: Interest Subsidy up to ₹35L/Yr 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.

All applications are submitted online and then go through a review before any subsidy is released.

• Eligibility verification: the enterprise type, its engagement in manufacturing, the SC/ST entrepreneur's contribution of 51% or more, and the term loan details are all checked against the scheme's conditions.
• Guideline compliance and documentation: the application is assessed for conformity with scheme guidelines and for completeness of the supporting documents uploaded.
• Further verification: shortlisted applicants may be contacted for additional verification or clarification if required.
• Approval and disbursement: once cleared, the interest subsidy is approved and paid out.

Before you apply to Dr.Babasaheb Ambedkar Udyog Uday Yojana: Interest Subsidy up to ₹35L/Yr, 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.

Dr.Babasaheb Ambedkar Udyog Uday Yojana: Interest Subsidy up to ₹35L/Yr is best suited for startups in India seeking non-dilutive funding of ₹1.3Cr – ₹2.5Cr. If that describes your startup, review the eligibility criteria above before applying.