Considering to open up or develop a Micro, Small or Medium Enterprise (MSME) in Gujarat? The state government is contributing towards your success. An important component of this support is the Scheme of Assistance to Micro, Small and Medium Enterprises (MSME), a formidable initiative meant to impetus the development of one of the most crucial sectors of the economy.
The article will center on one particular and very useful aspect of the scheme: Financial Assistance to Power Connection Charges. Your unit may also get a substantial reimbursement on the cost of connecting your power up and running, should your unit be situated outside of a large industrial estate.
What is This MSME Power Connection Scheme?
The scheme, which was launched by Industries and Mines Department of Gujarat, is designed to strengthen MSMEs, improve employment, and increase world competitiveness. The Assistance for Power Connection Charges component is direct financial assistance to reduce the initial cost of setup of new and expanding businesses.
- Scheme Period: The scheme is operational from 7th August 2020 to 6th August 2025. Payments made within this period are eligible.
What Are the Benefits? A Direct Boost to Your Budget
This initiative offers tangible, financial relief to help you manage your capital expenditure.
- Quantum of Assistance: You can claim 35% of the charges you paid to the electricity distribution company (DISCOM) for your LT (Low Tension) or HT (High Tension) service line.
- Maximum Financial Support: The assistance is capped at a generous maximum of ₹5,00,000 (Five Lakh Rupees) per enterprise.
Is Your MSME Eligible for This Assistance?
To qualify for this reimbursement, your enterprise must meet the following criteria:
- Your business must be a registered Micro, Small, or Medium Enterprise (MSME).
- Your industrial unit must be located outside a Gujarat Industrial Development Corporation (GIDC) estate or any other approved industrial park.
- You must have paid the power connection charges to the official distribution licensee (e.g., Torrent Power, MGVCL, PGVCL, etc.) during the scheme’s operative period (7th Aug 2020 – 6th Aug 2025).
- The application for reimbursement must be submitted within one year from the date of payment.
How to Apply: A Step-by-Step Guide
The entire application process is conveniently handled online through the Gujarat government’s Investor Facilitation Portal (IFP).
Stage 1: New User Registration
- Visit the Portal: Go to the official Investor Facilitation Portal (IFP).
- Register: Click on the “New Investor Registration” button.
- Fill in Details: Complete the registration form with your details and click “Submit”.
- Verify Email: Check your registered email inbox for a verification link and click on it to activate your account.
Stage 2: Submitting Your Application
- Log In: Return to the IFP portal and click “Login”.
- Access Your Account: Enter your registered email address and password.
- Complete the Application: Navigate to the scheme application section, fill in all required business details, and upload the necessary documents (listed below).
Need Help? The portal provides a dedicated Helpdesk for any technical or scheme-related queries.
Checklist of Documents Required
Having these documents ready will make your application process smooth and efficient.
- Copy of Udyam Registration / IEM / LOI certificate.
- Copy of the Constitution of the enterprise (Partnership Deed, MOA, etc.).
- CA Certified Balance Sheet or Annual Audit Report (if applicable).
- CA Certificate for capital investment.
- Land Document (e.g., Non-Agriculture (NA) Permission, Land Index Copy, Sale Deed).
- PAN Card of the Enterprise, Promoters/Partners/Directors, and Authorised Signatory.
- Estimates and Receipts from the Power Distribution Company (DISCOM).
- Copy of bills issued by the DISCOM.
- Copy of Power Distribution License Company Certificate (HT/LT).
- Copy of certificate for category (if applicable).
- Self-certified Shareholding pattern.
- Copy of Sanctioned and Connected Load Certificate from the DISCOM.
- Self-certified expenditure statement supported by DISCOM documents.
- Copy of GPCB-approved NOC/Consent & other departmental approvals (if applicable).
- Copy of GST Registration (if applicable).
- Bank details for payment (Cancelled cheque).
- Power of Attorney/Board Resolution/Consent Letter for the authorised signatory.
Frequently Asked Questions (FAQs)
Q1. Who is NOT eligible for this power connection assistance?
That particular component does not apply to MSMEs which are located within a GIDC or other approved industrial park as they may have different support structures.
Q2. I paid for my power connection just before the scheme started. Can I still apply?
No. The scheme applies to any payment made to the DISCOM within its operation period that is between 7th August 2020 and 6th August 2025.
Q3. What is the main objective of this power subsidy?
The goal is to mitigate the initial financial cost to MSMEs establishing themselves in regions outside of large industrial estates, promoting industrial development in all parts of Gujarat and make these businesses more feasible and competitive.
Q4. I’m an existing business with an old power connection. Can I apply?
This is normally done on new connections, or upgrades when charges are paid during the scheme period. A current consumer would not receive past connection charges, but when you are upgrading your connection and are paying new charges you might have done this. Also regularly review the current instructions on the IFP portal.
Q5. What is the time limit to apply after I’ve made the payment?
You have to file your reimbursement application within one year of the date when you paid the charges to the electricity distribution company.
Don’t miss out on this opportunity to reduce your setup costs. This scheme is a strong promise of the Gujarat government to empower local entrepreneurs. When you qualify to do so, prepare your documents and submit an online application in order to receive your reimbursement and ensure that your business gets a strong jump start that it is due.
Ready to apply? Click here to visit the Investor Facilitation Portal.