Schemes for Assistance to MSEs for Shed and Plot developed By Private Developer

Key Features

Financial Assistance

Component

Assistance Provided

Detailed Explanation & Example

Developer subsidy 

Assistance up to 55% of total cost of land, building, infrastructure, technical consultancy & TPQA charges, subject to a maximum of ₹ 5 crore for mini-estate. 

Example: Developer builds a mini-estate having 10 sheds each 80 sq m. Total cost (land + building + infra + consultancy) ₹ 9 crore. Assistance = 55% of ₹ 9 crore = ₹ 4.95 crore (within cap ₹ 5 crore). Developer incorporates this subsidy in pricing for the MSE allottees.

Additional assistance for SC/ST allottee

For SC/ST entrepreneur MSEs selecting a shed under special scheme: up to additional 15% assistance to developer on cost of shed. 

Example: A shed cost for SC/ST MSE is ₹ 50 lakh. Developer gets additional 15% i.e., ₹ 7.5 lakh support from state, making cost to MSE lower.

MSE allottee upfront payment reduction

SC/ST MSE pays only 30% of the cost of shed to developer at time of possession under that SC/ST variant. 

Example: Cost of shed ₹ 60 lakh. SC/ST MSE pays 30% = ₹ 18 lakh at allotment; remaining cost is managed through scheme benefits/developer pass-on.

Eligibility Criteria

Who Can Apply:

Who Cannot Apply:

Documents Required

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. 
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Option 2: Government Portal / Developer Assisted

  1. Visit the Industries & Mines Department/Investor Facilitation Portal.
  2. Developer registers the mini-estate/shed-project under the scheme and obtains in-principle approval.
  3. MSE enterprise enters into allotment of shed/plot in that mini estate.
  4. Submit application for subsidy assistance by developer & pass-on benefit to MSE. Developer to claim subsidy after sale and after the MSE commences production.

Option 3: Via Local DIC/MSME Facilitation Desk

  1. Visit your District Industries Centre  and check approved mini-estates list.
  2. MSE obtains allotment in approved mini-estate/shed, then coordinates with developer to claim benefits.
  3. Submit requisite paperwork to DIC/State Authority for verification and disbursement.

Frequently asked questions

Can MSEs purchase both a shed and a plot under the scheme?

Enterprises may purchase either an industrial shed or an industrial plot depending on their project requirements. Eligibility for assistance depends on the property being part of an approved industrial estate developed by a private developer.

Are industrial properties outside approved industrial estates eligible?

No. The scheme generally applies only to sheds or plots located within approved private industrial estates that meet the policy requirements and infrastructure standards.

Can an enterprise claim assistance if the shed is purchased through bank financing?

Yes. Many enterprises purchase industrial sheds or plots through bank loans. The subsidy provided under the scheme may be used to reduce the overall project cost.

Is the developer required to be registered with the government?

Yes. The industrial estate or infrastructure project must usually be developed by an approved private developer recognized by the state authorities.

Can startups apply for assistance under this scheme?

Yes. Startups establishing new micro or small manufacturing enterprises may apply if they meet eligibility criteria such as Udyam registration and industrial activity requirements.

Is there a limit on the size of the shed or plot eligible for subsidy?

Yes. The policy may define maximum area limits or investment thresholds for properties eligible under the scheme.

Assistance for MSE Sheds & Plots by Private Developers