Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L
Gujarat's Industries and Mines Department reimburses 65% of shed rent for Micro and Small manufacturing units, capped at ₹1,00,000 a year and available for up to five years.
- 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
Gujarat's Industries and Mines Department offers this rent reimbursement as one component of its larger Scheme for Assistance to Micro, Small and Medium Enterprises. The umbrella scheme was notified for a five-year window running from 7 August 2020 to 6 August 2025, and the rent support sits inside it as direct relief on one of the heaviest fixed costs a small factory carries.
A Micro or Small Enterprise that manufactures from a rented or leased shed in the state can claim 65% of its rent, capped at ₹1,00,000 a year, and the benefit can continue for as long as five years. That predictability matters to a young unit weighing whether it can afford to stay in a good industrial location.
The intent behind the component is to keep shop-floor money working. When rent is partly returned, a promoter can redirect capital into plant, capacity or new products instead of losing it to a landlord.
Applications are accepted on a rolling basis with no annual cut-off, so a unit can file its claim whenever its paperwork is ready.
Highlights
- 65% of manufacturing shed rent reimbursed
- Capped at ₹1,00,000 per annum
- Claim period of up to five years
- Only Micro and Small Enterprises qualify
- Applications accepted on a rolling basis
- Part of Gujarat's Scheme for Assistance to MSMEs (2020–2025)
Who can apply
- Your unit must be a Micro or Small Enterprise (MSE). Medium and large units fall outside this component.
- Manufacturing has to be the core activity. Trading or purely service-based operations do not qualify.
- The premises must be a rented or leased shed in Gujarat. Units working from owned premises are not covered by this rent assistance.
- The landlord must hold legal ownership and valid possession of the property, so a sub-let or a disputed title will not work.
- The manufacturing unit inside the shed must use electricity or power for its operations.
Your eligible period begins at the later of two points — the date of the rent deed, or three months before production commenced.
Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L 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
Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L 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
- 65% of your shed rent is reimbursed.
- The payout is capped at ₹1,00,000 a year.
- Support can run for a maximum of five years.
- Claims are calculated from the date of the rent deed, or from three months before production started, whichever of the two falls later.
The money is released as a subsidy. Nothing has to be repaid and no equity or stake in your company is taken.
Because the rent outgo shrinks, the capital that is freed up can go back into plant, technology upgrades or higher output rather than disappearing into premises costs.
About the provider
Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L 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
There is no pitch round or competitive shortlisting here. Each claim moves through document-based verification.
- The Industries and Mines Department, or an agency it designates, confirms that the applicant is genuinely an MSE.
- Officials check what the unit actually manufactures.
- The rent or lease agreement is examined for legitimacy.
- Evidence of electricity consumption at the premises is reviewed.
Approval follows only once every eligibility condition is found to be satisfied.
Documents you’ll need
Before you apply to Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L, 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
Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L 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 funding can I get from this scheme?
The scheme reimburses 65% of your shed rent every year, subject to a ceiling of ₹1,00,000 a year. If your rent is high enough, the payout stops at that ceiling; if it is lower, you get 65% of what you actually paid.
For how long is the assistance available, and when does it start?
Support can continue for a maximum of five years. Your claim is calculated from the later of two dates — the date the rent deed was executed, or three months prior to the start of production.
Which enterprises are eligible to apply?
Only Micro and Small Enterprises that are engaged in manufacturing and working out of a rented or leased shed in Gujarat. The owner of that shed must have legal ownership and valid possession of it, and the unit must consume electricity or power for its activities.
Do I need MSME Udyam registration to apply?
The scheme is reserved for Micro and Small Enterprises, so you will have to establish that status. An Udyam registration is the standard way of showing it, which makes having one effectively necessary before you file your claim.
Can a business based outside Gujarat apply?
No. This is an initiative of the Industries and Mines Department, Gujarat, and it is designed for MSEs operating within the state. Units located elsewhere are not covered.
Is the money a loan? Do I have to repay it or part with equity?
Neither. The benefit is a subsidy paid as a rent reimbursement, so there is nothing to repay and no stake in your business is taken.
How do I apply for this scheme?
The entire process runs online through the Investor Facilitation Portal (IFP). Start with New Investor Registration, fill in the form and submit it, then confirm your email address using the verification link sent to you. After that, log back in with the email and password you created, complete your business details and upload the mandatory documents to finish your application.
Is there a last date to submit the application?
There is no fixed deadline — the scheme is rolling and always open. You can apply at any point during the year, so the sensible approach is to file once your rent deed and production records are in order.
What exactly gets verified before my reimbursement is approved?
Verification covers four things: your MSE status, the fact that the unit genuinely carries out manufacturing, the legitimacy of the rent or lease agreement, and proof of electricity consumption at the premises. The department or its designated agency approves the reimbursement only after all eligibility conditions are met.
Which scheme does this rent assistance belong to?
It is one component of Gujarat's wider Scheme for Assistance to Micro, Small and Medium Enterprises, which was notified for the period from 7 August 2020 to 6 August 2025. The rent reimbursement operates within that framework.
Is DPIIT recognition required for Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L, though having it can strengthen your application and unlock other benefits.
Who offers Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L?
Assistance in Rent to MSEs — 65% Gujarat Rent Subsidy up to ₹1L is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.
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