Assistance for saving in consumption of Energy and Water
You as an MSME in Gujarat can avail this scheme run by the Industries & Mines Department, Government of Gujarat under its industrial policy “Gujarat Industrial Policy 2020”.
The purpose of the scheme is to encourage manufacturing MSMEs (new or existing) to adopt energy-saving and water-saving measures by conducting audits and installing equipment to reduce resource consumption, cost and environmental impact. The benefit for your business is financial assistance (audit cost reimbursement + subsidy for equipment) so that you can invest less and improve resource efficiency.
Key Features
- Audit subsidy for energy/water consumption – The scheme reimburses a portion of the cost of an energy/water audit conducted by a recognised institution or consultant.
- Equipment subsidy for implementation of conservation measures – After audit, you install equipment and the scheme covers a portion of cost subject to minimum savings requirement.
- Minimum savings criterion – To get the equipment subsidy, your unit must achieve at least 10% saving in energy and/or water compared to average monthly consumption of the preceding 12 months.
- Eligible for existing & new manufacturing MSMEs – Both new units and existing units taking up measures to save energy/water qualify under this scheme.
- One-time assistance during the operative period – The scheme provides the support once in the operative period (audit + equipment).
Financial Assistance
Eligibility Criteria
Who can apply?
- MSME units engaged in manufacturing activities in the State of Gujarat (as per the industrial policy definition).
- Units (new or existing) that wish to install energy saving / water saving equipment and/or undertake audit to achieve minimum stated consumption reductions (e.g., at least 10% reduction in energy or water consumption compared to average of previous 12 months).
- The equipment or audit must be for the unit’s own premises; cost incurred after the date specified in the policy period.
Who Cannot Apply
- Units purely in trading or service sector (unless service category is explicitly eligible under policy) this scheme is targeted at manufacturing MSMEs.
- Units which have already availed the same component benefit for the same project under another scheme for the same asset.
- Projects where the minimum prescribed saving threshold (e.g., 10% reduction) is not achieved.
- Applications submitted after the stipulated time-window (e.g., more than one year after equipment installation) per policy clause.
Documents Required
- MSME / Udyam registration acknowledgement or certificate.
- Audit report by recognized institution/ consultant indicating baseline consumption (previous 12 months) of energy/water and proposed savings.
- Invoice(s) and proof of payment for the audit and/or equipment purchase & installation.
- Statement of average monthly energy/water consumption for previous 12 months (for existing units) and post-installation consumption figures.
- Photos / verification of installed equipment (if applicable).
- Bank account details of the enterprise for reimbursement.
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Government Online Portal
- Visit the official portal of the Industries & Mines Department, Government of Gujarat via [Investor Facilitation Portal / MSME incentives section].
- Register your enterprise (if not already) and prepare the application for “Assistance for Saving in Consumption of Energy & Water”.
- Fill the application form specifying the proposed audit/equipment, estimated cost, expected savings, and taluka/municipal area.
- Upload documents (audit reports, equipment invoices, proof of installation, previous 12-month average consumption data) as per the guideline.
- Submit the application within one year of equipment installation or the date of audit (as per the policy notification).
- After verification by the local DIC / state committee, approval will be issued and assistance disbursed to the applicant unit.
Option 3: District Industries Centre (DIC) / MSME Facilitation Desk
- Visit your local DIC or MSME facilitation desk in the district.
- Obtain assistance in understanding the minimum saving requirement, audit requirement, and preparing documents for the scheme.
- Submit the application either physically or via portal with DIC’s verification; track status through the portal or DIC.
- Follow up for approval and disbursement of assistance.
Frequently asked questions
What types of technologies qualify as energy-saving investments under the scheme?
Technologies that reduce electricity or fuel consumption in manufacturing processes generally qualify. Examples include energy-efficient motors, automation systems, efficient lighting systems, waste heat recovery systems and other technologies that demonstrate measurable reductions in energy consumption.
Can MSMEs apply for assistance after installing energy-saving equipment?
Yes. Enterprises can usually apply after implementing the project and submitting supporting documents such as invoices, installation reports and proof showing the energy or water savings achieved through the new system.
Is technical verification required before receiving the subsidy?
Yes. In many cases the implementing authority may require verification of the project, including technical evaluation or inspection to confirm that the installed system actually results in measurable energy or water savings.
Are water recycling plants eligible for financial assistance?
Yes. Water recycling and water treatment systems designed to reduce fresh water consumption in manufacturing processes are generally eligible under the scheme if they meet the policy requirements.
How long does the approval process usually take?
The timeline depends on document verification, technical evaluation and administrative approval by the implementing authority. Once approved, the subsidy is generally transferred to the enterprise’s bank account.
Is the subsidy linked to the amount of investment made?
Yes. The financial assistance is typically calculated based on eligible project costs and may be subject to percentage limits and maximum subsidy caps defined by the policy.