Dr. Babasaheb Ambedkar Udyog Uday Yojana — Rent Subsidy for SC/ST MSEs
Gujarat government subsidy that reimburses up to 70% of rent, capped at ₹1,00,000 a year for five years, for SC/ST-owned micro and small manufacturing units.
- Funding amount
- ₹1L (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
The Industries and Mines Department of Gujarat runs the Dr. Babasaheb Ambedkar Udyog Uday Yojana, a scheme built around the state's large MSME base and directed at entrepreneurs from the Scheduled Caste and Scheduled Tribe communities. Within it, the "Assistance in Rent to MSEs" component addresses one cost that manufacturing units almost never escape — the rent on the shed or premises they work from.
The scheme was framed to operate for a five-year stretch, from 7 August 2020 to 6 August 2025. There is no fixed cut-off inside that window, so applications can be filed at any point while the scheme is running.
A manufacturing business that rents or leases its operating space carries a fixed monthly outgo before a single order is booked. Returning a share of that rent lowers the unit's running cost and leaves more cash free for machinery, working capital or expansion. It also encourages SC/ST entrepreneurs to set up and scale production units in Gujarat, which feeds into local employment and industrial growth.
Everything is handled online through Gujarat's Investor Facilitation Portal (IFP), and the support is released as a subsidy — no equity or ownership is taken in return.
Highlights
- Rent reimbursement of up to 70%, capped at ₹1,00,000 per year
- Benefit continues for five years
- Open to manufacturing units with 51% or more SC/ST ownership
- Premises must be legally rented or leased, with electricity used for production
- Rolling applications through Gujarat's Investor Facilitation Portal (IFP)
- Scheme window: 7 August 2020 to 6 August 2025
Who can apply
The conditions below all have to be met for an enterprise to qualify.
- The firm must be classified as a Micro, Small or Medium enterprise. The rent reimbursement itself is described for Micro and Small manufacturing units.
- SC/ST contribution of 51% or more — an entrepreneur from a Scheduled Caste or Scheduled Tribe community must hold a controlling share of the business.
- The unit must be engaged in manufacturing activity, not purely trading or services.
- It must operate from a legally rented or leased shed or premises, and the person letting it out must hold lawful ownership and possession of that property.
- Production must genuinely be under way, with the unit consuming electricity or power for its manufacturing operations.
- The enterprise must be operating within Gujarat, as this is a state government programme.
Dr. Babasaheb Ambedkar Udyog Uday Yojana — Rent Subsidy for SC/ST MSEs 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 — Rent Subsidy for SC/ST MSEs 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
- Up to 70% of the rent paid by the enterprise is reimbursed.
- The reimbursement is capped at ₹1,00,000 per year.
- Support is available for five years, giving the unit a predictable, recurring cushion.
The relief applies to Micro and Small manufacturing enterprises, and it lands as a subsidy rather than a loan or an investment — nothing is taken back in equity.
Because the benefit repeats every year, it functions as a long-term reduction in overheads rather than a one-time grant. Money saved on rent can be redirected into expansion, technology upgrades or day-to-day working capital. Over the five-year period, that freed-up cash helps SC/ST entrepreneurs stabilise their units, scale production and contribute to employment and industrial development in Gujarat.
About the provider
Dr. Babasaheb Ambedkar Udyog Uday Yojana — Rent Subsidy for SC/ST MSEs 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
Every application filed on the Investor Facilitation Portal reaches the Industries and Mines Department, Gujarat, where it is screened in detail.
The review committee measures each application against the scheme's conditions — whether the unit is a Micro or Small Enterprise, whether it genuinely manufactures goods, whether the premises are held under a valid rent or lease arrangement, and whether SC/ST entrepreneurs hold the required ownership share.
Supporting papers are examined closely. Evidence of rent payments, records establishing the property owner's title and possession, and proof that electricity is being drawn for production all come under scrutiny.
Applications that clear the review move forward for approval, after which the rent assistance is disbursed.
Documents you’ll need
Before you apply to Dr. Babasaheb Ambedkar Udyog Uday Yojana — Rent Subsidy for SC/ST MSEs, 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 — Rent Subsidy for SC/ST MSEs is best suited for startups in India seeking non-dilutive funding of ₹1L. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
How much rent money can I get back under this scheme?
Up to 70% of the rent your enterprise pays is reimbursed. There is a ceiling of ₹1,00,000 per year, and the reimbursement continues for five years.
Who is eligible to apply for the Assistance in Rent to MSEs component?
Your unit must be a Micro, Small or Medium enterprise with SC/ST contribution of 51% or more, engaged in manufacturing, operating from a legally rented or leased shed whose owner holds lawful ownership and possession, and consuming electricity for production. The rent benefit is described for Micro and Small manufacturing units, and the business must be operating in Gujarat.
Is there a last date to submit the application?
No fixed cut-off applies. Applications are accepted on a rolling basis throughout the scheme's operating period, which runs from 7 August 2020 to 6 August 2025. You can apply as soon as your unit and paperwork are in order.
Is this scheme open across India or only within Gujarat?
It is a Gujarat state programme launched by the Industries and Mines Department, so it applies to enterprises operating within Gujarat.
Does the government take equity or a stake in my business?
No. The support comes as a subsidy in the form of rent reimbursement, so it does not dilute your ownership or require any stake in return. It simply offsets rent your enterprise pays.
What exactly counts as an SC/ST enterprise here?
A business in which the contribution — ownership or equity — of an SC/ST entrepreneur is 51% or more.
Do I need DPIIT recognition or MSME registration to apply?
The scheme's stated conditions focus on your classification as a Micro, Small or Medium enterprise and on SC/ST ownership of 51% or more, along with the manufacturing, rented-premises and electricity requirements. DPIIT recognition is not listed among the conditions.
What documents will typically be checked?
Records relating to the rent you have paid, proof of the property owner's ownership and possession, evidence that electricity is being consumed for manufacturing, the rent or lease agreement for the shed, and papers establishing the SC/ST ownership share in the enterprise.
How do I apply?
Applications are made online through the Investor Facilitation Portal (IFP) of Gujarat. You first complete a new investor registration on the portal, verify your email through the link sent to your registered address, then log in with your email and password. Once inside, you fill in the required business details and upload the mandatory documents to submit the application, which is then taken up for review.
Does my unit have to be a manufacturing business?
Yes. The enterprise must be engaged in manufacturing activity and must be consuming electricity or power for that production. A business that only trades or provides services would not match the eligibility conditions.
Who offers Dr. Babasaheb Ambedkar Udyog Uday Yojana — Rent Subsidy for SC/ST MSEs?
Dr. Babasaheb Ambedkar Udyog Uday Yojana — Rent Subsidy for SC/ST MSEs is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.
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