VGIP MSME core package

1. Enterprise = company/firm/LLP/society/trust/industrial co-op/proprietorship doing manufacturing, production, processing or job work
2. MSME by gross P&M across all units in India: micro up to Rs 2.5 crore; small Rs 2.5–25 crore; medium Rs 25–125 crore; status decided on project completion date
3. New enterprise needs Udyam/LoI/LoA/IEM/MCA21 etc.; separately identifiable FCI and separate books
4. Expansion: +50% GFCI in same premises, 60% in P&M, +50% capacity, and 75% capacity use in one of last 3 years; eligible only one year after earlier project completion
5. Diversification: +25% GFCI (micro/small) or +50% (medium) in same premises, 60% in P&M
6. Assets paid from 01.01.2026; extended investment period 12 months from DoCP (P&M up to Rs 50 crore) or 18 months (above Rs 50 crore)
7. Units that started production before 01.06.2026 stay under the old Aatmanirbhar scheme; others may opt for old scheme within 6 months of GR (old scheme only if DoCP on or before 04.10.2027)
8. No incentive if the same GFCI already got any state incentive
9. 85% of employees must be Gujarat domicile; 60% in managerial/supervisory posts
10. Ineligible: land, working capital, goodwill, royalty, pre-operative costs, second-hand machinery, capitalised interest, rented/leased assets, non-captive power plants, NBFC loans

• Choose any one or a combination of capital subsidy, interest subsidy and power tariff subsidy within the taluka ceiling
• 1% extra interest subsidy for women entrepreneurs, registered manufacturing startups and first-generation entrepreneurs (within ceiling)

1. Category A: ceiling 45% of eFCI over 5 years; micro capital subsidy 35% of eFCI paid in 1 year; small & medium 35% over 5 years; interest 7% on term loan for 5 years up to 10% of eFCI; power Rs 2/unit for 5 years up to 25% of eFCI
2. Category B: ceiling 35% of eFCI; capital subsidy 25% (micro in 1 year, S&M over 5 years); interest 7% for 5 years up to 10% of eFCI; power Rs 1/unit for 5 years up to 25% of eFCI
3. Selected thrust sectors (sports goods, toys, footwear, robots, drones): ceilings 50% (A) / 45% (B); capital subsidy 35% (A) / 30% (B); interest 7% for 5 years up to 20% of eFCI; power Rs 2 (A) / Rs 1 (B) per unit up to 20% of eFCI
4. Annual caps: S&M 9% (A) / 7% (B) of eFCI (thrust 10%/9%); micro year-1 37%/27% then 2% a year (thrust 38%/33% then 3%); no carry forward
5. Unit must bear at least 2% interest; defaults deduct subsidy period
6. Project infrastructure counted at 50%; technology/design/patent cost up to 10% of P&M eFCI
7. PEC issued for 40% of eFCI at DoCP; apply within 6 months of DoCP; late FEC within 2 years with proportionate cut
8. Total state + central incentives cannot exceed eFCI; recovery with 18% interest on breach

• Application for Provisional / Final Eligibility Certificate (PEC/FEC)
• Bank Project Completion Certificate or DIC asset verification; for self-finance: statutory auditor/CA/CE/CS certificate
• Bank/FI appraisal report (installed capacity)
• Term loan sanction and disbursement details

GPCB certificate as applicable

• Electricity bills in enterprise name (power tariff); sub-meter for expansion
• Note: MSME Commissioner may issue separate implementation guidelines with full checklist (GR 22.5)