Gujarat Unveils MSME Incentive Scheme 2026 With Capital, Interest And Technology Support

Gandhinagar, Oct 10 (KNN) Gujarat has introduced a comprehensive MSME incentive scheme covering capital investment, loan interest, electricity costs, employment, technology adoption and quality certification. Launched under the Viksit Gujarat Industrial Policy-2026, it will run from June 1, 2026, to May 31, 2031.

Announced by the Industries and Mines Department under Chief Minister Bhupendra Patel and Deputy Chief Minister Harsh Sanghavi, the scheme offers multiple incentives, with enhanced benefits for thrust sectors such as sports equipment, toys, footwear, robotics and drones, subject to prescribed conditions and limits.

Capital Investment And Interest Assistance

Total assistance is capped at 45 percent of eligible fixed capital investment (EFCI) in Category-A areas and 35 percent in Category-B areas, rising to 50 percent and 45 percent, respectively, for thrust sectors. Capital assistance covers up to 35 percent of EFCI in Category-A areas and 25 percent in Category-B areas.

The scheme provides 7 percent interest assistance on term loans and electricity tariff support of up to Rs 2 per unit in Category-A areas and Rs 1 per unit in Category-B areas for five years.

Women entrepreneurs, manufacturing startups and first-generation entrepreneurs can receive an additional 1 percent interest assistance, subject to prescribed limits, reported The Economic Times.

Employment And Technology Support

Manufacturing units creating jobs can receive 100 percent reimbursement of employer EPF contributions for eligible new employees for five years. The scheme also covers up to 65 percent of ERP costs, capped at Rs 1 lakh, and eligible ICT expenses for digitalisation and Industry 4.0 adoption, capped at Rs 5 lakh.

Technology acquisition assistance covers up to 65 percent of costs, capped at Rs 50 lakh for general MSMEs and Rs 1 crore for thrust-sector enterprises. Micro enterprises and artisans in thrust sectors can claim 80 percent of AI subscription fees, capped at Rs 1 lakh annually for three years.

Quality Certification And Intellectual Property

Eligible enterprises can receive up to 50 percent reimbursement for quality certification and testing equipment costs, capped at Rs 10 lakh, including support for Zero Defect, Zero Effect (ZED) certification.

Patent registration assistance covers up to 75 percent of costs, capped at Rs 25 lakh, while thrust-sector enterprises can receive up to 75 percent assistance, capped at Rs 1 crore, for intellectual property rights. They can also claim international certification fee
reimbursement of up to Rs 5 crore.

Energy Efficiency And Market Access

MSMEs can claim 75 percent reimbursement of energy or water audit costs, capped at Rs 50,000 per category, and a one-time incentive covering 25 percent of conservation equipment costs, capped at Rs 20 lakh, for measures achieving at least 10 percent savings.

Enterprises raising equity through an SME Exchange can receive 25 percent reimbursement of eligible fundraising expenses, capped at Rs 5 lakh. The scheme also covers 100 percent of annual CGTMSE service fees on eligible collateral-free term loans for five years.

MSMEs outside GIDC estates or approved industrial parks can claim 35 percent assistance for electricity connections, additional loads or service-line alterations, capped at Rs 5 lakh.

Rental Support And Local Employment Conditions

Manufacturing units in rented or leased sheds can receive rent assistance of up to 65 percent, rising to 75 percent for women-owned enterprises, capped at Rs 3 lakh annually for five years.

Thrust-sector enterprises can claim full reimbursement of stamp duty and registration charges on land, training assistance of up to Rs 8,000 per employee monthly in the first year, and 50 percent reimbursement of creative design studio costs, capped at Rs 5 crore.

Beneficiaries must employ at least 85 percent Gujarat residents, including 60 percent in managerial and supervisory roles. Eligible asset purchases and payments from January 1, 2026, qualify subject to scheme conditions.

The investment eligibility period is 12 months from commercial production for plant and machinery investments up to Rs 50 crore and 18 months for investments above Rs 50 crore up to Rs 125 crore.

The scheme aims to boost MSME investment, employment, technology adoption and market expansion, with additional incentives for select manufacturing sectors and women-led enterprises.

(KNN Bureau)