Scheme for assistance for Start Ups/ Innovation: Interest Subsidy

Description
The "Scheme for Assistance for Start Ups/ Innovation" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Industrial Policy. Effective from August 7th, 2020 to August 6th, 2025, it aims to drive economic growth by generating jobs, fostering competition, and introducing next-gen solutions. The component "Interest Subsidy" provides financial support to startups with innovative ideas across various sectors. Startups approved under this scheme are eligible for an additional interest subsidy of 1%, up to a maximum of 9%, on term loans for MSME assistance.

Exclusions
• Entities formed by splitting or restructuring an existing business are not considered startups under this scheme.
• Startups availing benefits under other startup schemes of the Government of Gujarat are ineligible.

Definitions
Startups (For The Purpose Of This Scheme)
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/13-GR_02092020.pdf)

Innovative Project
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/13-GR_02092020.pdf)

Mentor
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/13-GR_02092020.pdf)

Nodal Institution
(Source: https://ic.gujarat.gov.in/documents/commondoc/2020/13-GR_02092020.pdf)

Benefits
• **Financial Support:** Interest subsidy of 1%, maximum up to 9% on term loans under the provisions of scheme for assistance to MSMEs.

Eligibility Criteria
1. - Any individual or group of individuals with an innovative idea or concept, recommended by an approved Nodal Institution, is eligible.
2. - The scheme is open to startups in any sector or branch of science, technology, engineering, agriculture, healthcare, etc., making it sector-agnostic.
3. > **Note:** Startups availing benefits under the Student Startup and Innovation Policy (SSIP) are also eligible.

Application Process
Step 1: Startup Gujarat Cell
Office of Industries Commissionerate
Block No: 1, 3rd Floor, Udhyog Bhavan, Sector: 11, Gandhinagar - 382010 Gujarat, INDIA.
079-23252588 / 1800-233-0616
[email protected]
Online

Startup Gujarat Cell
Office of Industries Commissionerate
Block No: 1, 3rd Floor, Udhyog Bhavan, Sector: 11, Gandhinagar - 382010 Gujarat, INDIA.
079-23252588 / 1800-233-0616
[email protected]

Required Documents
• Registration proof as a startup/innovator.
• Detailed project proposal, including innovative idea/concept.
• Recommendation letter from the approved Nodal Institution.
• Financial details of the term loan availed.
• Declaration of non-eligibility under other state startup schemes (if applicable).
• Other documents as specified by the Nodal Institution.

Frequently Asked Questions
Q: What is the objective of the "Scheme for Assistance for Start Ups/ Innovation"?
A: The "Scheme for Assistance for Start Ups/ Innovation" is an umbrella scheme launched by the Industries and Mines Department, Gujarat under the Gujarat Industrial Policy. Effective from August 7th, 2020 to August 6th, 2025, aims to drive economic growth by generating jobs, fostering competition, and introducing next-gen solutions.

Q: What is the objective of the "Interest Subsidy" component?
A: The component "Interest Subsidy" provides financial support to startups with innovative ideas across various sectors. Startups approved under this scheme are eligible for an additional interest subsidy of 1%, up to a maximum of 9%, on term loans for MSME assistance.

Q: What is the maximum interest subsidy available under the scheme?
A: The maximum interest subsidy available under the scheme is 9% on term loans.

Q: Who is eligible to apply for the scheme?
A: Any individual or group of individuals with an innovative idea or concept that is recommended by an approved Nodal Institution is eligible to apply for the scheme.

Q: Are startups in all sectors eligible for the scheme?
A: Yes, the scheme is sector-agnostic and supports innovative projects across all sectors, including science, technology, agriculture, engineering, and healthcare.

Q: Can startups availing benefits under the Student Startup and Innovation Policy (SSIP) apply for this scheme?
A: Yes, startups benefiting under SSIP are also eligible to avail assistance under this scheme.

Q: Can startups formed by splitting or reconstructing an existing business apply?
A: No, startups formed by splitting or reconstructing an existing business are not eligible for the scheme.

Q: Are startups already availing incentives under other Gujarat startup schemes eligible?
A: No, startups availing incentives under other Gujarat Government startup schemes, except SSIP, are not eligible for this scheme.

Q: What is the role of the Nodal Institution in this scheme?
A: The Nodal Institution evaluates, validates, and recommends startup project proposals to the Office of the Industries Commissioner for approval.

Q: Are there any restrictions on the type of innovation supported by the scheme?
A: No, the scheme supports all kinds of innovation, regardless of the sector, making it inclusive and sector-agnostic.