Schemes for Assistance to MSEs for Shed and Plot developed By Private Developer
This scheme is operated by the Industries & Mines Department, Government of Gujarat under the Gujarat Industrial Policy 2020 for Micro & Small Enterprises (MSEs) in Gujarat. The purpose is to enable MSEs to access affordable industrial sheds/plots developed by private developers (mini-estate) with state assistance, thereby lowering the fixed cost burden of land/ shed and promoting MSME growth. Your business benefit is that you as an MSE can avail infrastructure (plot or shed) in a ready-developed mini-estate at a reduced cost due to subsidy to the developer (which gets passed on) and floor-pricing support mechanism.
Key Features
- Private developer builds mini-estate/industrial shed & gets subsidy – A private developer develops a mini-estate or sheds with infrastructure, and the scheme gives assistance to that developer.
- MSEs allotment of shed/plot at reduced cost – Because of the subsidy to developer, MSEs can be allotted the shed/plot at favourable cost and MSEs pay a lower upfront portion.
- Mini-estate defined & size norms – The scheme defines “mini-estate” with size and shed dimensions: e.g., shed 50 sq m to 100 sq m, land area up to 12 hectares for mini-estate.
- Assistance rate & cap for developer – The developer is eligible for assistance up to a specified percentage of cost (e.g., 55%) and maximum ceiling (for example up to ₹ 5 crore for mini-estate).
- Eligibility of MSEs & restrictions – The scheme is for Micro & Small Enterprises as defined under MSMED Act in Gujarat; the plot/shed must be used for manufacturing and not for purely trading activities. The developer cannot sell more than one shed to the same MSE under some conditions
Financial Assistance
Eligibility Criteria
Who Can Apply:
- The scheme targets Micro & Small Enterprises registered in Gujarat.
- The shed/plot must be developed by a Private Developer under approval as a mini-estate or industrial park.
- Land/plot must be in an industrial zone in Municipal Corporation/Urban Development Authority area or properly converted to industrial use in other areas.
Who Cannot Apply:
- Units which are purely trading/commerce .
- Enterprises outside Gujarat or not registered as MSE under the applicable definitions.
- Projects where the shed/plot development started before obtaining scheme registration by the developer .
Documents Required
- MSE / Udyam registration certificate of the enterprise.
- Agreement/allotment letter of shed/plot in approved mini-estate by private developer.
- Layout plan and conversion certificate confirming industrial use.
- Proof of payment (30% or relevant level) by MSE to developer or as per scheme for general MSE.
- Developer’s certificate: cost of land, building & infrastructure, CA certificate of expenditure.
- Production commencement certificate for MSE .
- Bank account details & any other statutory approvals if required.
Application Process for the Scheme
Option 1: Apply with Bullit
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Option 2: Government Portal / Developer Assisted
- Visit the Industries & Mines Department/Investor Facilitation Portal.
- Developer registers the mini-estate/shed-project under the scheme and obtains in-principle approval.
- MSE enterprise enters into allotment of shed/plot in that mini estate.
- 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
- Visit your District Industries Centre and check approved mini-estates list.
- MSE obtains allotment in approved mini-estate/shed, then coordinates with developer to claim benefits.
- 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.