Aatmanirbhar Gujarat Scheme for assistance to MSMEs: EPF Reimbursement to MSMEs

Description
The "Aatmanirbhar Gujarat Scheme for MSMEs" is an umbrella scheme launched by the Industries and Mines Department, Gujarat. It aims to empower the state& 39;s dynamic MSME sector, which significantly contributes to employment, GDP, and exports. Effective from October 5, 2022, to October 4, 2027, this initiative supports growth, investments, and the vision of "Aatmanirbhar Gujarat" and "Aatmanirbhar Bharat." The component "Financial Support to MSMEs in ZED Certification" provides reimbursement of the employer& 39;s statutory contribution under the Employees& 39; Provident Fund EPF to eligible MSMEs for their new employees in Gujarat.

Exclusions
• MSMEs that have availed EPF reimbursement under any scheme of the central/state government, or any agency of the central/ state government, shall not be eligible for EPF reimbursement under this scheme for that period.

Definitions
New Enterprise
(Source: https://msmec.gujarat.gov.in/uploads/homepagescroll/GR09082023.pdf)

Existing Enterprise
(Source: https://msmec.gujarat.gov.in/uploads/homepagescroll/GR09082023.pdf)

Gross Fixed Capital Investment (GFCI)
(Source: https://msmec.gujarat.gov.in/uploads/homepagescroll/GR09082023.pdf)

Eligible Fixed Capital Investment (EFCI)
(Source: https://msmec.gujarat.gov.in/uploads/homepagescroll/GR09082023.pdf)

Benefits
• **100% Reimbursement:** Covers 100% of the employer’s statutory EPF contribution for new employees. 1. **Maximum Limit:** Reimbursement capped at 12% of basic salary plus Dearness Allowance (DA) or ₹1800 per employee per month, whichever is lower. 1. **Extended Support:** Assistance is available for up to 10 years from the date of commercial production.

Eligibility Criteria
1. The firm must be a Micro/Small/Medium enterprise.
2. The enterprise must have obtained acknowledgment or registration from the Ministry of MSME or the Department for Promotion of Industry and Internal Trade (DPIIT), as applicable.
3. New manufacturing enterprises or existing ones undertaking expansion or diversification are eligible.
4. The enterprise must commence commercial production during the scheme's operative period.

Application Process
Step 1: Step 1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.
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Step 1: Visit the Investor Facilitation Portal (IFP) portal. Click on "New Investor Registration" to access the registration form.

Step 2: Step 2: Fill in the Registration Form. Click on "Submit".
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Step 2: Fill in the Registration Form. Click on "Submit".

Step 3: Step 3: Verify the E-mail ID using the link sent on your registered E-mail ID.
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Step 3: Verify the E-mail ID using the link sent on your registered E-mail ID.

Step 4: Step 4: After verification, you will be registered successfully.
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Step 4: After verification, you will be registered successfully.

Step 5: Step 1: Visit the Investor Facilitation Portal (IFP) portal. Click on "Login".
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Step 1: Visit the Investor Facilitation Portal (IFP) portal. Click on "Login".

Step 6: Step 2: Enter the email address and password you used during registration.
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Step 2: Enter the email address and password you used during registration.

Step 7: Step 3: Click the "Login" button to access your account.
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Step 3: Click the "Login" button to access your account.

Step 8: Step 4: Now fill in the required details and mandatory documents about your business to complete the application process.
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Step 4: Now fill in the required details and mandatory documents about your business to complete the application process.

Required Documents
• Printed Copy of application form with declaration signed by authorized person describing his/her designation and name with stamp of enterprise.
• Copy of Udyam/IEM/LOI Registration certificate.
• Copy of the Constitution of the enterprise
• CA certificate for fixed capital investment
• CA certified Detailed expenditure statement for installing the ERP System.
• Undertaking for any assistance from GOG and GOI
• Copy of the bill of expenditure occurred.
• Copy of Highlighted Bank Statement.
• Copy of ERP System installation certificate from supplier
• Copy of GPCB approved NOC/Consent & other departments approval (if applicable )
• Brief Description of ERP Module installed by Applicant.
• Copy of certificate for category (if applicable)
• Copy of Self certified Shareholding pattern.
• Copy of PAN Card of Enterprise and promoters/partners/Directors, authorized signatory.
• Copy of cancelled cheque.
• Copy of GST registration (if applicable).
• CA Certified Balance-sheet /Annual Report. ( if applicable)
• Copy of latest electricity bill.
• Self-Attested documents/ details to be submitted by the Authorized Person
• Power of attorney/ Board resolution letter/consent letter.

Frequently Asked Questions
Q: What is the "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs"?
A: The "Aatmanirbhar Gujarat Scheme for Assistance to MSMEs" is a state initiative designed to support and strengthen the MSME sector in Gujarat. It aims to enhance growth, encourage investments, and contribute to the vision of self-reliant Gujarat and India.

Q: When is the scheme operative?
A: The scheme is operative from October 5, 2022, to October 4, 2027, covering a period of five years.

Q: What are the objectives of the scheme?
A: The scheme aims to boost MSME growth, enhance the industrial ecosystem, encourage investments, and contribute to Gujarat's and India's self-reliance vision.

Q: What are some initiatives included in the scheme?
A: The scheme includes the establishment of new industrial estates, sector-specific parks, and infrastructure projects, along with amendments to the Gujarat Industrial Policy 2020 to further support MSME growth.

Q: What is the purpose of this component?
A: The component aims to reimburse EPF contributions for new employees to promote job creation and support MSMEs.

Q: Who is eligible for the scheme?
A: New enterprises and existing enterprises undertaking expansion/diversification that commence commercial production during the scheme's operative period are eligible.

Q: What does "new employee" mean under this scheme?
A: A new employee is someone who did not have a Universal Account Number (UAN) prior to joining the eligible enterprise.

Q: What is the reimbursement period under the scheme?
A: The reimbursement is available for a maximum of 10 years from the date of commencement of commercial production.

Q: How much EPF reimbursement can an enterprise claim per employee?
A: The maximum reimbursement is 12% of basic salary plus Dearness Allowance (DA) and retaining allowance or [?]1800 per month, whichever is lower.

Q: Is the scheme applicable to employees working outside Gujarat?
A: No, the scheme applies only to employees working in Gujarat.

Q: Can an enterprise claim EPF reimbursement under multiple schemes?
A: No, enterprises availing EPF reimbursement under other schemes for the same period are not eligible under this scheme.

Q: What are the key conditions for reimbursement?
A: Reimbursement is provided for incremental employee count and based on verified EPF payment receipts.

Q: How is the reimbursement processed?
A: Reimbursement is processed quarterly after submission of payment receipts and verification by authorities.

Q: Can MSMEs with existing employees benefit from this scheme?
A: Yes, but only for incremental employees who join after expansion/diversification during the scheme's operative period.