Interest Subsidy

(Classification Of Category Wise Talukas Based On Investment Will Be Decided Later On)

• 1% Additional Interest Subsidy to Differently Abled Entrepreneur, Women Entrepreneur And Registered Startup In Manufacturing Sector.
• 1% Additional Interest Subsidy to Young Entrepreneur Below Age Of 35 Years On The Date Of Sanction Of Term Loan.
• Maximum Rate Of Interest Subsidy To An Enterprise Will Not Be More Than 9%, 8% 7% Where The Rate of Interest Subsidy Is 7%, 6% & 5% Respectively. However, Eligible Enterprise Shall Have To Bear Minimum 2% Interest Levied On Term Loan By Bank/Financial Institution
• An Existing Enterprise Which Installs Solar Power Plant Or Any Other Renewable Power Plant For Captive Consumption In The Premises Will Be Eligible For Interest Subsidy In Accordance To The Location Of. The Enterprise. In Addition To The Interest Subsidy As Mentioned Above Special Provision Is Made For The Interest Subvention On Such Installation. However, Incentive Will Be Available Only Once.

Service Sector

• Only New MSME Of Service Sector As Listed In Annexure-A And B Will Be Eligible For Interest Subsidy On The Term Loan On New Machinery, Equipment And Furniture/Fixture (Except Land And Building).

(Classification Of Category Wise Talukas Based On Investment, Will Be Decided Later On

• 1% Additional Interest Subsidy To Registered Start Up In Service Sector And Having Udyam Registration As MSME.
• Service Enterprise Which Has Service Tax Registration Are Only Eligible For Incentive.
• The Enterprise Shall Have To Obtain Shop And Establishment Registration From Municipal Corporation For Doing Business, If Enterprise Is Located In The Area Of Municipal Corporation.
• The Services Listed At Annexure B Shall Have To Comply With Following Additional Conditions.

(I) The Enterprise Shall Have To Give Permanent Employment To Minimum 10 (Ten) Persons.

(Ii) The Enterprise Must Have GST Registration.

Conditions For Interest Subsidy:-

• Enterprise Shall Opt For Date Of Eligibility Of Interest Subsidy Either From The Date Of First Disbursement Of Loan Or From The Date Of Commencement Of Commercial Production/Rendering Services.
• Enterprise Shall Have To Apply At Online Portal Within One Year From The Date Of First Disbursement Of Loan, Or On Or Before The Date Of Commencement Of Commercial Production/Rendering Services Whichever Is Later.
• Late Submission Of Application Will Be Considered By Deducting Late Period After Maximum Permissible Time For Application. The Period Of Late Submission Will Be Counted From The Accepted Date Of Option (I.E. Date Of First Disbursement Of Loan Or From The Date Of Commencement Of Commercial Production/Rendering Services)
• Reimbursement Of Interest Subsidy Will Be Made Only After Commencement Of Commercial Production/Rendering Services Of The Enterprise.
• The Enterprise Will Not Be Eligible For Interest Subsidy Under This Scheme If, Term Loan Is Sanctioned After One Year From The Date Of Commencement Of Commercial Production/Rendering Services.
• If The Enterprise Becomes Defaulter In Payment Of Interest Or Installment Of Term Loan To Bank/Financial Institution As Per Guidelines Of RBI And As Mentioned In Certificate Of Bank/Financial Institution Such Default Period Will Be Deducted
• Interest Subsidy Will Not Be Available For Penal Interest Or Any Other Bank Charges.
• If Enterprise Is Availing Interest Subsidy Under Scheme Of Central Government Then Total Quantum Of Interest Subsidy From State And Central, In Any Case Shall Not Exceed The Total Interest Paid To Bank/Financial Institution.
• The Eligible Enterprise Shall Have To Bear a Minimum 2% Interest Levied On Term Loan By a Bank/Financial Institution.

Conditions Applicable To Capital Investment Subsidy and Interest Subsidy (Scheme 1 & 2):-

• Loan Sanctioned And Disbursed By Bank Or Financial Institution As Per RBI Guidelines Will Be Eligible For Incentive Under This Resolution. Loan Sanctioned By Non-Banking Financial Institutes Will Not Be Eligible For Incentive Under This Resolution.
• Only New Buildings, New Plant Machinery /Equipment, And Second Hand Imported Machinery Will Be Eligible For Incentives.
• Enterprise Shall Have To Furnish Information Regarding Production, Sales, Turnover, And Employment Etc. Annually To Concerned DIC Before the End Of September Each Year.
• Enterprise Will Have To Observe Pollution Control Measures As Prescribed By GPCB Or Other Competent Authorities.
• The Enterprise Shall Have To Obtain Shop And Establishment Registration From the Municipal Corporation For Doing Business For Service Enterprises, If Enterprise Is Located In The Area Of Municipal Corporation.
• Enterprise Will Have To Employ At Least 85% Of The Total Employment And 60% Of Supervisory And Managerial Staff From Local Persons.
• Enterprise Will Have To Remain In Production For 7 Years From The Date Of Commercial Production And If It Fails To Continue Production For 7 Years, The Amount Of Capital Investment Subsidy Disbursed Will Be Recovered As Arrears Of Land Revenue.
• If An Enterprise Is Located In The Geographical Limit Of More Than One Taluka, Then The Taluka In Which The Enterprise Has The Largest Percentage Of Land Area Will Be Considered As The Eligible Category.
• Out Of Forward Integration, Backward Integration, Diversification And Expansion, Only One Activity Will Be Eligible For Subsidy During The Policy Period.
• Existing Or New Enterprise Carrying Out An Activity Of Forward Integration, Backward Integration And Diversification With An Investment More Than 25% (Out Of Which Minimum 60% Investment Should Be In Plant & Machinery) Of GFCI Will Be Eligible.