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From 1 April 2025, the Government of India revised the MSME classification thresholds as announced in the Union Budget 2025-26 and later notified by the Ministry of MSME. 

Old Definition: 

Micro Enterprise was one with investment not exceeding ₹1 crore and turnover not exceeding ₹5 crore. 

Small Enterprise was defined as having investment not exceeding ₹10 crore and turnover not exceeding ₹50 crore, 

Medium Enterprise was one with investment up to ₹50 crore and turnover up to ₹250 crore. 

New Definition from (1-4-2025)

Micro Enterprise is one where the investment does not exceed ₹2.5 crore and turnover does not exceed ₹10 crore. 

Small Enterprise is defined as having investment up to ₹25 crore and turnover up to ₹100 crore. 

Medium Enterprise now includes enterprises with investment up to ₹125 crore and turnover up to ₹500 crore. 

Gujarat Subsidy for Vapi (Other than Dharampur and Kaprada)

Scheme operative period 05-10-2022 to 04-10-2027

Category 3 and Municipal Corporation areas

Assistance for Power Connection Charges

(Electricity connection must be in the company/firm's name)

Financial Assistance: Assistance of 35% on charges paid to the distribution licensee for LT/HT service lines

maximum assistance of up to ₹5,00,000/- during the operative period of the scheme.

Electric Duty Exemption (EDE)

(Electricity connection must be in the company/firm's name)

• Duration: 5 years for new/expansion units in normal areas;

• Benefits: Exemption or reduction on electricity duty

  • 10% for LT,

  • 15% for HT connections)

• Application to be submitted within 90 days of production start.

Net SGST reimbursement to Micro, Small and Medium Manufacturing Enterprise (MSMEs):

(Need More sale in Gujarat, Approx working of Sales and Purchase in Gujarat)

Stages Registration – Provisional Eligibility certificate – Final Eligibility Certificate  - Claim – Money

(Party may avail benefit after 2-3 years where all ITC utilised due to heavy installation of machines, then full Net SGST)

Benefits

Category of Taluka

Quantum of Incentive

Category 3 & Municipal Corporation Areas

80% of net SGST for 10 years upto 5% of eFCI p.a.



Note: The period of 10 years shall be from the date of commencement of commercial production.



Assistance for Interest Subsidy to Micro, Small and Medium Enterprise

Benefits

Category of Taluka

Quantum of Incentive

Category 3 & Municipal Corporation Areas

5% on Term Loan with a maximum amount of ₹25,00,000/- per annum for a period of 5 years

Eligibility

1. The term loan must be sanctioned by a recognized Bank/Financial Institution (excluding NBFCs).

2. The enterprise must apply within one year of loan disbursement or before the commercial production starts.

3. The enterprise must remain operational for at least 7 years post-subsidy approval.

4. The enterprise must comply with pollution control measures.

Assistance in Rent to MSEs

Benefits

• Financial Support: Reimbursement of 65% of rent paid, up to ₹1,00,000/- per annum.

• Long-term Assistance: Available for a maximum period of 5 years.

Eligibility

1. The enterprise must be a Micro or Small Enterprise (MSE).

EPF Reimbursement to MSMEs

Benefits

1. 100% Reimbursement: Covers 100% of the employer’s statutory EPF contribution for new employees.

2. Maximum Limit: Reimbursement capped at 12% of basic salary plus Dearness Allowance (DA) or ₹1800 per employee per month, whichever is lower.

3. Extended Support: Assistance is available for up to 10 years from the date of commercial production.

Daman Subsidy

Daman Unit II

Medium Enterprise

In the manufacturing sector undertaking New/ expansion,

1. Fixed Capital Investment Subsidy

As a Medium Industry, you are eligible for a capital subsidy based on your new investment:

• Quantum: 15% of the Gross Fixed Capital Investment (GFCI) with an upper ceiling of Rs. 35 lakhs.

• Additional Bonus: If your eligible GFCI exceeds Rs. 10 Crore, you can receive an additional Rs. 10 lakhs.

2. Interest Subsidy

This applies to term loans taken for new machinery, equipment, buildings, and furniture/fixtures (excluding land).

• Quantum: 50% of the interest charged by the bank, with an upper ceiling of Rs. 30 lakhs per annum.

• Duration: Available for 5 years or the period of loan repayment, whichever is earlier.

• Note: The unit must bear a minimum of 2% interest levied by the financial institution.

3. Incentive for Local Employment

The scheme encourages hiring local residents (domicile certificate holders):

• Quantum: A one-time recruitment incentive of Rs. 3 lakhs for every 20 local persons hired for a continuous 12-month period.

• Maximum: Up to Rs. 15 lakhs per eligible unit.

4. Reimbursement of Stamp Duty

Units undertaking expansion are eligible for the reimbursement of stamp duty paid for acquiring land:

• Quantum: 50% reimbursement for the MSME sector.

5. Other Potential MSME Assistance

Depending on the specifics of your expansion, you may also access:

• Solar Power: 25% capital subsidy (up to Rs. 50 lakhs) for installing a Solar Power Plant that meets at least 10% of your total power consumption.

• Quality Certification: 50% of fees for obtaining National/International certifications (like BIS/ISO) and 50% of the cost of required testing equipment, up to Rs. 10 lakhs.

• Patent/Trademark: 75% of the expenditure for registration, up to Rs. 25 lakhs.

Key Conditions and Application Process

• Deadline: You must apply within one year from the first disbursement of the loan or the date of commencement of commercial production, whichever is later.