Bharat Ratna Dr. Baba Saheb Ambedkar Udyog Uday Yojana for SC / ST Entrepreneurs of MSME

This scheme is run by the Industries & Mines Department, Government of Gujarat under the Gujarat Industrial Policy. It is designed to support MSME enterprises where Scheduled Caste (SC) or Scheduled Tribe (ST) entrepreneurs hold 51% or more stake.
The purpose of the scheme is to promote inclusive growth by enabling SC/ST entrepreneurs to set up, expand or diversify MSME manufacturing (and eligible services) enterprises with special incentives making them competitive, reducing cost of capital & investment burden, and promoting employment. The benefit to your business is that you get capital subsidies, interest subsidies, and a range of other incentives (under umbrella of this scheme) specifically for SC/ST entrepreneur-owned units, along with the regular MSME policy benefits.

Key Features
Financial Assistance
Eligibility Criteria
Who Can Apply
Who Cannot Apply
Documents Required
Application Process for the Scheme

Key Features

Ownership condition – The enterprise must have SC/ST entrepreneur contributing 51% or more of the shareholding / ownership.
Categories of talukas & graded incentives – Incentive rates (capital subsidy / interest subsidy) vary depending on the taluka category (Category I, II, III / Municipal Corporation area) reflecting regional backwardness.
Capital investment subsidy + Interest subsidy – Manufacturing sector units get a capital subsidy (a % of term-loan or eligible investment) and interest subsidy on term loans for defined number of years.
Service sector inclusion – For eligible service sector units (listed in the annexure of policy) owned by SC/ST entrepreneurs: interest subsidy is provided, although capital subsidy component for service may not always be included.
Linkage with other scheme components – Units under this scheme can also access other supportive schemes (quality certification, technology acquisition, power connection charges, GIDC sheds, etc.) under the same umbrella.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Capital Investment Subsidy (Manufacturing)	Category I Taluka: @ 30% of term-loan amount, Maximum cap of ₹40 lakh (if eligible fixed capital investment > ₹10 crore, additional ₹10 lakh). Category II: 25%, cap ₹35 lakh (+ extra if FCI >10 cr). Category III / Municipal: 15%, cap ₹15 lakh (+ extra if FCI >10 cr).	Example: If you set up a manufacturing unit in a Category I taluka, term loan sanctioned ₹1 crore. Under scheme you may get capital subsidy of 30% of ₹1 crore = ₹30 lakh, subject to cap (₹40 lakh). If your eligible FCI >10 crore, you may get additional ₹10 lakh (max ₹50 lakh).
Interest Subsidy on Term Loan (Manufacturing)	Category I: @ 8% on term-loan, Maximum cap ₹35 lakh per annum, for 7 years. Category II: @7%, cap ₹30 lakh/annum, 6 years. Category III: @6%, cap ₹25 lakh/annum, 5 years.	Example: Same unit takes term loan ₹2 crore. Interest paid say ₹12 lakh per annum. Scheme provides interest subsidy at 8% => up to ₹16 lakh; but cap is ₹35 lakh; so you get subsidy of ₹12 lakh (actual interest) each year for 7 years. You must bear at least 2% interest minimum.
Interest Subsidy (Service Sector)	For service enterprises (owned by SC/ST): Category I @8% (cap ₹35 lakh/yr for 7 years); Category II @7% (cap ₹30 lakh/yr for 6 years); Category III @6% (cap ₹25 lakh/yr for 5 years).	Example: You start a service MSME (SC/ST owned) in Category III area, term loan ₹1 crore, interest say ₹8 lakh/year; subsidy is 6% => up to ₹6 lakh/year cap ₹25 lakh; so you may get ₹6 lakh/year for 5 years.

Eligibility Criteria

Who Can Apply

Enterprise must be registered as a Micro; Small or Medium Enterprise as defined in the MSMED Act 2006 and have Udyam registration.
The unit must be majority-owned by SC/ST entrepreneur(s) (i.e., 51%+ shareholding) - defined as “SC/ST enterprise”.
New units: For new enterprises commencing commercial production during the operative period (07 Aug 2020 to 06 Aug 2025).
Existing units: Eligible for one-time expansion / diversification / forward/backward integration subject to conditions (for example investment increase ≥50% & ≥60% plant & machinery) as per policy.

Who Cannot Apply

Enterprises that are not majorly-owned by SC/ST entrepreneurs.
Units outside Gujarat or not registered under the MSME/Udyam regime.
Units whose term loan is sanctioned after the allowable timeline (in case of capital/interest subsidy components) may be ineligible.

Documents Required

Udyam / MSME registration certificate.
SC/ST entrepreneur certificate (for the person(s) holding majority share).
Term loan sanction letter and first disbursement proof (for capital/interest subsidy component).
Constitution of enterprise (MOA/AOA/Partnership deed) showing SC/ST shareholding.
Project report / DPR (for new units) or expansion/diversification details (for existing units).
CA certificate of investment (for GFCI / Term Loan) as applicable.
Proof of commercial production commencement date.
Bank account details for subsidy disbursement.
Other component-specific documents (for example for rent assistance: rent invoice; for training: details of entrepreneurship training).

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

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Option 2: Government Online Portal

Visit the official Investor Facilitation Portal (IFP) / Industries & Mines Department of Gujarat.
Register your enterprise (if not already) with valid Udyam/MSME credentials.
Select the scheme: “Dr. Baba Saheb Ambedkar Udyog Uday Yojana – SC/ST Entrepreneurs of MSME”.
Choose the specific assistance component you’re claiming (capital investment subsidy, interest subsidy, or other support).
Fill in application form, upload required documents (see below), and submit within the stipulated timeframe (often within 1 year of first loan disbursement or date of commercial production).
After verification, sanction letter is issued and disbursement follows as per guidelines.

Option 3: Through District Industries Centre (DIC) / MSME Facilitation Desk

Visit the local DIC or MSME facilitation centre.
Submit application physically (if offline) or get guidance on online submission.
Track through DIC or state portal until assistance is sanctioned and released.

Frequently asked questions

Can first-time entrepreneurs apply for the Ambedkar Udyog Uday Yojana?

Yes. The scheme particularly encourages first-generation SC/ST entrepreneurs who wish to establish MSME manufacturing units. Applicants must meet eligibility conditions such as caste certification, MSME registration and compliance with industrial regulations.

Does the scheme support only manufacturing enterprises?

The scheme mainly focuses on MSMEs engaged in manufacturing or industrial activities. Enterprises involved solely in trading or service activities may not qualify unless their operations involve industrial production.

Can existing MSMEs owned by SC/ST entrepreneurs apply for expansion assistance?

Yes. Existing enterprises may apply for support if they are planning expansion, modernization or installation of new machinery that increases production capacity or improves operational efficiency.

Is bank financing required to receive benefits under this scheme?

Bank financing is not always mandatory, but many projects involve term loans from financial institutions. When loans are involved, the scheme may provide interest subsidy support to reduce financing costs.

Are women entrepreneurs from SC/ST communities eligible for the scheme?

Yes. Women entrepreneurs belonging to SC or ST communities can apply for the scheme if they meet all eligibility criteria related to enterprise ownership, MSME registration and industrial activity.