About Capital Investment Subsidy (10% to 15%)
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Eligibility Criteria
- Registered Unit
The Enterprise registered as an industrial unit under MSME Development act, 2006 with respective DIC as manufacturing enterprise.
- Commencement during Operative Period
For setting up new enterprise during operative period of the scheme such enterprise has to commence production during the operative period.
- Expansion or Diversification
For carrying out expansion or diversification by existing enterprise with investment in fixed capital more than 50% of its existing gross fixed capital investment as on date of initiation of expansion/diversification. However, such investment should be minimum 60% only in plant and machinery. Such expansion/ Diversification should have been completed and it should commence production during the operative period.
Only one expansion/diversification will be eligible for assistance during the operative period of the scheme.
- Modernization
For carrying out Modernization of existing unit with investment in plant –machinery and equipment by more than 25% of its existing gross fixed capital investment, such modernization should be carried out by way of adopting new technology/ production process and/or improving quality of products.
Only one Modernization will be eligible for assistance during the operative period of the scheme.
- Only New Machinery
Old & second hand machinery will not be eligible for assistance. Only new machinery is eligible for subsidy.
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Operative Period
Operative period of the Interest Subsidy will be From 01/01/2015 to 31/12/2019.
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Amount of Subsidy
- Capital Investment subsidy will be eligible only on Loan Amount disbursed by the Bank/Institution.
- In Municipal Corporation Areas: Subsidy @ 10% of term loan amount disbursed by the bank/ Financial Institution with maximum amount of Rs.15 lakhs
- Area Outside Municipal Corporation limit: Subsidy @ 15% of term loan amount disbursed by the bank/ Financial Institution maximum amount of Rs.25 lakhs.
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Conditions
- The Unit shall have to continue production at least for 5 years from the date of commencement of commercial production, and if, it fails to do so than subsidy already been disbursed will be recovered as land revenue arrears.
- In case term loan is sanctioned after one year from the date of commencement of commercial production, such enterprise will not eligible for subsidy under the scheme.
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