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

It is an umbrella scheme of the Industries and Mines Department, Government of Gujarat. The component described here gives an interest subsidy on term loans to Micro, Small and Medium manufacturing enterprises led by SC/ST entrepreneurs. It was framed to run from 7 August 2020 to 6 August 2025.

The subsidy covers 6–8% of the interest on your term loan. The annual cap is ₹35 lakh in Category I talukas (for 7 years), ₹30 lakh in Category II talukas (for 6 years), and ₹25 lakh in Category III talukas and municipal corporation areas (for 5 years). Over the full period, the total benefit can work out to roughly ₹1.3 crore to ₹2.5 crore.

The enterprise must be a Micro, Small or Medium unit in the manufacturing sector, run by an SC/ST entrepreneur whose contribution to the business is 51% or more. The term loan has to come from a recognised bank or financial institution, it must be sanctioned before commercial production begins, and the enterprise must bear at least 2% interest on that loan. The application also needs to be submitted within the prescribed timeline.

Yes. One of the stated eligibility conditions is that the term loan is sanctioned before the enterprise begins commercial production. The scheme also expects the enterprise to carry a minimum of 2% interest on the term loan.

It takes no equity. This is an interest subsidy — the government reimburses part of the interest you pay on your term loan, so the funding is non-dilutive and your ownership stays exactly as it is.

The published eligibility conditions do not list DPIIT recognition as a requirement. What they do require is that the enterprise is a Micro, Small or Medium manufacturing unit, that an SC/ST entrepreneur holds 51% or more, and that the term loan meets the conditions described above.

There is no fixed deadline — the scheme is rolling and always open for applications. Applications are filed online, and the scheme itself was notified for the period from 7 August 2020 to 6 August 2025.

Yes. Additional benefits are available for women entrepreneurs, differently-abled entrepreneurs, registered startups and young entrepreneurs below 35 years of age, over and above the interest subsidy available to SC/ST-led manufacturing MSMEs.

An SC/ST enterprise is one in which the contribution — equity or ownership — of SC/ST entrepreneurs is 51% or more. That threshold is what directs the benefit towards businesses with substantial SC/ST ownership.

Applications are made entirely online through the Investor Facilitation Portal (IFP) of Gujarat. Register as a new investor and fill in the registration form, verify your email ID through the link sent to your registered address, then log in with your email and password to reach the dashboard. From there, complete the application with your business details and upload all the mandatory supporting documents.

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. It is provided as non-dilutive funding.