Gujarat Rehabilitation of Sick Enterprises Scheme — Up to ₹1 Lakh

Distressed MSMEs in Gujarat often know they need a turnaround plan but cannot justify paying for one. This component of the state's wider Scheme for Assistance to MSMEs exists to close that gap. It is run by the Industries and Mines Department, Government of Gujarat, and it targets industrial units that qualify as 'sick' under Reserve Bank of India norms, helping them meet the professional cost of putting a credible revival plan together.

Micro, small and medium enterprises are major engines of employment, output and exports in Gujarat, and the umbrella scheme behind this component is built to strengthen entrepreneurs and sharpen their competitiveness in global markets. Rehabilitation of Sick Enterprises is the portion of that framework aimed at units already in trouble, where the priority is recovery rather than expansion.

The assistance is deliberately focused on the planning stage. Preparing a Draft Rehabilitation Scheme involves professional guidance, documentation and a structured assessment of how the business can be revived, and that bill is hard for a cash-strapped unit to absorb. By reimbursing a share of the expenditure, the state lowers the barrier to starting a formal revival process.

The component has been in force since August 7, 2020, and its validity runs to August 6, 2025. There is no single submission window within that period — applications are accepted on a rolling basis for as long as the scheme operates.

• Reimburses 50% of the cost of preparing a Draft Rehabilitation Scheme
• Maximum reimbursement of ₹1,00,000 per eligible enterprise
• Open to MSMEs in Gujarat classified as sick under RBI norms
• Applications accepted on a rolling basis — no single cut-off date
• Scheme valid from August 7, 2020 to August 6, 2025
• Apply online through Gujarat's Investor Facilitation Portal (IFP)

Eligibility turns on two things together: the size of the enterprise and the state of its finances. Both have to hold.

• MSME status: the applicant must fall within the Micro, Small or Medium Enterprise category.
• Sickness under RBI norms: the unit must satisfy the Reserve Bank of India's criteria for being classified as sick. A healthy unit, or one that is merely growing slowly, does not qualify.
• Financial proof: audited balance sheets must be submitted, because the sickness assessment is made from the enterprise's accounts.
• Gujarat connect: this is a state programme administered by the Industries and Mines Department, Government of Gujarat, aimed at enterprises in the state.

The scheme does not list separate conditions around industry, entity type or founder profile. The determining factors are the MSME categorisation and the RBI sickness test, evidenced by audited accounts.

Gujarat Rehabilitation of Sick Enterprises Scheme — Up to ₹1 Lakh is open to startups at any stage. It is open to startups registered anywhere in India.

Gujarat Rehabilitation of Sick Enterprises Scheme — Up to ₹1 Lakh 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 benefit is a cash reimbursement, not an upfront grant. An eligible unit bears the cost of preparing its Draft Rehabilitation Scheme and then claims a share of that spending back from the government.

• 50% of the cost incurred in preparing the Draft Rehabilitation Scheme is reimbursed.
• The reimbursement is capped at ₹1,00,000 per eligible enterprise, so the ceiling applies however large the preparation expense is.
• The support is a subsidy-style payment from the state. There is no equity stake taken in the business and nothing to repay.

Because the money offsets the expense of professional guidance and a properly structured revival plan, it directly reduces the burden on a business that is already under financial strain and makes the formal rehabilitation route more accessible.

Gujarat Rehabilitation of Sick Enterprises Scheme — Up to ₹1 Lakh 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.

Before you apply to Gujarat Rehabilitation of Sick Enterprises Scheme — Up to ₹1 Lakh, 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.

Gujarat Rehabilitation of Sick Enterprises Scheme — Up to ₹1 Lakh 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.