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

It reimburses the money an eligible sick MSME spends on preparing its Draft Rehabilitation Scheme — the professional guidance, documentation and structured planning that go into a formal revival proposal. It is not working capital or a general operating grant, so the reimbursement is tied specifically to the scheme-preparation cost.

The reimbursement covers 50% of the cost of preparing the Draft Rehabilitation Scheme, with a maximum of ₹1,00,000. The cap applies regardless of how high the preparation cost goes.

A micro, small or medium enterprise in Gujarat that meets the Reserve Bank of India's criteria for being classified as a sick unit. Audited balance sheets have to be submitted along with the application, since the sickness assessment is based on the enterprise's accounts.

Neither. The assistance is a state government subsidy paid as a reimbursement, so there is no equity dilution and no repayment obligation. You spend on preparing the rehabilitation scheme and claim back the eligible portion.

Being an MSME is central to eligibility — the applicant must be a micro, small or medium enterprise that also satisfies RBI's sickness norms. DPIIT startup recognition is not among the conditions listed for this component. What you must be able to demonstrate is RBI-defined sickness, backed by audited balance sheets.

There is no single cut-off date. Applications are accepted on a rolling basis throughout the scheme's validity period, which runs from August 7, 2020 to August 6, 2025. Since the window closes on August 6, 2025, it makes sense to apply as soon as your documentation is ready.

Everything is handled online through the Gujarat government's Investor Facilitation Portal (IFP). First register as a new investor, submit the registration form and verify your email address using the link sent to you. Once your registration is confirmed, log in with those credentials, fill in the required details about your business and upload the mandatory documents to complete the application for the Rehabilitation of Sick Enterprises component.

Audited balance sheets are specifically required, as they are the basis for verifying sickness under RBI guidelines. Beyond that, the portal asks for the business details and mandatory documents needed to establish your MSME status and your eligibility under this component.

This is a Gujarat state scheme run by the Industries and Mines Department, Government of Gujarat, for the state's MSME sector, so the applicant enterprise is expected to be based in Gujarat.

The scheme does not describe a competitive selection round or a scoring panel. Eligibility is determined against the stated conditions — MSME categorisation plus RBI's criteria for sickness — and is verified through the audited balance sheets and business details submitted with the online application on the IFP portal.

Gujarat Rehabilitation of Sick Enterprises Scheme — Up to ₹1 Lakh is offered by Industries and Mines Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.