The Atma Nirbhar Gujarat Scheme provides comprehensive support to Micro, Small, and Medium Enterprises (MSMEs) in Gujarat to encourage growth, modernization, and competitive positioning. Below are the key incentives available under this scheme:
1. Net SGST Reimbursement for MSMEs
Eligibility:
To qualify for net SGST reimbursement, an MSME must be a new or expanding manufacturing enterprise that commences commercial production within the scheme’s operative period. Specific eligibility conditions include:
Enterprises already receiving state incentives for the same Gross Fixed Capital Investment (GFCI) are not eligible, except where specified.
Final eligibility will consider either the actual GFCI or the bank-appraised project cost, whichever is lower.
Quantum of Incentive:
Eligible enterprises are entitled to net SGST reimbursement based on the taluka category, with the following limits:
Category 1 Talukas: 100% of net SGST for 10 years, up to 7.5% of Eligible Fixed Capital Investment (eFCI) per annum.
Category 2 Talukas: 90% of net SGST for 10 years, up to 6.5% of eFCI per annum.
Category 3 & Municipal Corporation Areas: 80% of net SGST for 10 years, up to 5% of eFCI per annum.
The reimbursement period is 10 years from the commencement of commercial production.
2. EPF Reimbursement for MSMEs
Eligibility:
New or expanding enterprises that begin commercial production during the scheme’s operative period are eligible for EPF reimbursement.
Quantum of EPF Reimbursement:
Eligible MSMEs can claim reimbursement for the employer’s contribution under the Employees’ Provident Fund (EPF) for new employees in Gujarat for up to 10 years after the start of commercial production. This incentive includes:
100% reimbursement of the employer’s EPF contribution, up to a maximum of 12% of the employee’s basic salary plus Dearness Allowance (DA) and retaining allowance, or INR 1,800 per month, whichever is lower.
3. General Conditions for Capital Investment, Interest Subsidy, and Net SGST (Schemes 1, 2 & 3)
Enterprises applying for these incentives must submit the following documents:
Industrial registration documents, including Udyam Registration or Industrial Entrepreneur Memorandum.
Proof of legal possession of land/building, with non-agricultural permission for industrial use.
Consent to Establish from Gujarat Pollution Control Board (GPCB), if applicable.
Detailed Project Report.
Term loan sanction letter from the financial institution, if applicable.
4. Choice Between Current or Previous Scheme
MSMEs that started commercial production before the issuance of this scheme can only avail incentives under the previous scheme. They may choose to apply under the “Capital Subsidy to Large Enterprise and Thrust Sector” scheme, as outlined by GR of Industries and Mines Department dated 01/09/2020.
5. Assistance for Quality Certification
This assistance supports MSMEs in acquiring quality certifications to enhance their product competitiveness.
ERP Assistance:
Eligible MSMEs can receive assistance for implementing an Enterprise Resource Planning (ERP) system, with 65% of the capital cost covered, up to INR 1,00,000. Eligible expenses include:
ERP systems for managing production, inventory, sales, purchases, accounting, and human resources.
Capital cost includes installation charges, software, and annual service fees (excluding hardware costs).
For SaaS-based ERP systems, annual subscription costs are covered.
