Capital Subsidy on New Factory & Expansion

The Viksit Gujarat Industrial Policy 2026 (announced June 15, 2026) significantly enhances capital subsidy for MSMEs. Micro enterprises can claim 25% of their Eligible Fixed Capital Investment (eFCI) as a capital subsidy disbursed in Year 1. Small and Medium enterprises receive capital subsidy phased over 5 years. The combined ceiling — including interest subsidy and power tariff — is 35% of eFCI for Category B Talukas and 45% of eFCI for Category A (less-developed / interior) Talukas.

Eligible Fixed Capital Investment includes new plant and machinery, certain installation and erection costs, and eligible factory building / civil work, subject to scheme conditions. The exact percentage depends on your taluka category and sector — thrust sector units in Category A Talukas receive the highest combined ceiling of 45%. SC/ST entrepreneurs receive an additional 5% on the ceiling.

The subsidy is reimbursed after the unit commences commercial production and the investment is verified, not paid upfront — the project must first be financed, then the subsidy flows in. This is precisely why we structure your loan and subsidy claim together from Day 1: the finance funds the project, and the capital subsidy reduces your effective project cost once you are running.

Capital subsidy is part of a 3-component package. It combines with Gujarat's interest subsidy (7% p.a. for 5 years) and power tariff concession (₹1/unit for 5 years) — all within the overall eFCI ceiling. It also stacks with the central CLCSS scheme for machinery. We map your project against every applicable layer, prepare all applications correctly, and follow the file through inspection and sanction so the money actually reaches you.