Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance in Rent to MSEs
The “Assistance in Rent to MSEs” component is part of the broader Scheme for Assistance to Micro, Small and Medium Enterprises under the Gujarat Industrial Policy 2020, run by the Industries & Mines Department, Government of Gujarat. It is aimed at helping Micro & Small Enterprises that hire/lease rented sheds or premises by providing rental-cost support. Your business can benefit if you are a manufacturing MSE in Gujarat operating from rented/leased premises: this reduces your rental cost burden in early stages.
Key Features
- Rent reimbursement: The scheme allows you as a manufacturing MSE to claim back a portion of the rent you pay for the shed/premises you lease, thereby improving your cash-flow and reducing fixed cost burden.
- Rate & ceiling: Under the current guideline the assistance is 65% of the actual rent paid, but with a maximum support of ₹ 1,00,000 per annum. This means if you pay ₹ 1,20,000 rent per year, you can get 65% of that i.e., ₹ 78,000 (since it’s under ₹ 1,00,000) as reimbursement. If you pay ₹ 2,00,000 rent, 65% = ₹ 1,30,000 but ceiling is ₹ 1,00,000, so you get ₹ 1,00,000.
- Duration of benefit: The support is available for a specified period so you can plan early years of operations with rental support.
- Unit eligibility: Only the manufacturing portion is eligible, and the unit must be registered as a Micro or Small enterprise under MSME/Udyam. This prevents misuse by non-manufacturing or large units.
- Premises/lease conditions: To avail benefit, the rented/leased premises must meet certain legal and operational conditions: owner must have legal ownership or possession, lease or rent deed must be valid, minimum duration for lease etc. These conditions protect the scheme’s integrity.
- Exclusion of service/trading units: The scheme focuses on manufacturing units to promote industrialisation rather than services/trade, which may have other separate schemes.
Financial Assistance
Eligibility Criteria
Who can apply:
- The unit must be a Micro or Small Enterprise located in Gujarat.
- The unit must engage in manufacturing activity, not trading or pure services.
- The enterprise should have leased or rented a shed/plot for setting up operations within the scheme’s operative period.
- The shed/plot should be authorised for industrial/commercial use and have required utilities.
Who cannot apply:
- Units engaged only in trading or services are excluded.
- Units that do not secure a valid rental/lease agreement, or are operating from non-industrial zoned buildings.
- Units which commence production outside the operative period or don’t meet the “new unit” requirement may be ineligible.
- Units that avail overlapping benefits for the same rental cost from another scheme may face restrictions.
Documents Required
- Registration certificate/acknowledgement under MSME or as MSE unit in Gujarat.
- Lease/rental deed of shed/plot showing rent paid and tenure .
- Proof of manufacturing activity: power connection “industrial”, production commencement certificate.
- Bank statement/evidence of rent payment.
- Proof of location: industrial/commercial zone, necessary permissions from authority.
- Application form , undertakings as per state policy guidelines.
- Other documents as required by DIC or state portal .
Application Process for the Scheme
Option 1: Apply with Bullit
Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: New manufacturing MSEs in Gujarat looking to simplify the application process and ensure correct submission.
Option 2: Apply directly via Government Portal
- Visit the official website of the State Industries & Mines Department or the MSME Commissionerate for Gujarat and locate the scheme “Assistance in Rent to MSEs”.
- Register your unit under the relevant state industrial policy, fill out the form for rental assistance, upload lease/rent deed, manufacturing registration, commencement of production details, etc.
- After verification, the sanction order is issued. Submit claims for the rent assistance as per guidelines .
- The sanctioned assistance is credited to the unit’s bank account once compliance is certified .
Option 3: Liaise via the Local District Industries Centre or MSME Facilitation Desk
- Visit the nearest DIC in Gujarat and enquire about the scheme get guidance on eligibility, required documentation and claim deadlines.
- Collect the checklist and submission format; ensure that rental premises and lease deed comply.
- Submit your application through the DIC or approved portal; follow up for sanction and receive disbursement once conditions are met.