Industrial Subsidy

SCLCSS

To facilitate credit linkages for SC/ST enterpreneurs Providing handholding and mentoring support Undertaking outreach activities for the promotion of scheme

A-TUFs

To promote ease of doing business and achieve the vision of generating employment & promoting exports through "Make in India" with "Zero effect and zero defect" in manufacturing..

PMEGP

To generate employment opportunities in rural as well urban areas of the country through setting up of new self- employment ventures/projects/micro enterprises.

CLCSS

To facilitate technology to MSEs through institutional finance for induction well established and proven technologies in the specific sub-sector/products approved under the scheme.

Aatmanirbhar Gujarat Schemes

In order to facilitate this vision, it is imperative to give incremental support to industries and particular thrust areas, which shall be critical for India in the coming years.

Special Credit Linked Interest Subsidy Scheme(S-CLCSS)

Ministry of Micro, Small and medium enterprises, Government of india

Eligible entity:-

Form of EnterpriseMininum Holding % (SC/ST )
Proprietorship MSEs 100%
Partnership MSEs51%
Private Limited51%

ACTIVITIES COVERED UNDER THIS SCHEME

Manufacturing Service SCLCSS subsidy shall not be applicable for trading activities.

SUBSIDY CAP

WHICH EVER IS LOWER

When to apply

END OF NEXT QUARTER FROM QUARTER IN WHICH LAST DISBURSEMENT TAKEN

How to Apply

The eligible SC/ST MSEs may submit the application alongwith requisite documents for SCLCSS subsidy to the concerned Prime Lending Institution (Bank from which term loan has been availed for procurement of plant & machinery / equipment). The Nodal banks/agencies as notified from time to time by the Ministry of MSME shallupload the claim application of SC-ST MSEs on the dedicated MIS Portal. 

Plant & Machinery

Only new plant & machinery is eligible. Second hand machinery would not be eligible for assistance

Spare & Accesserioes of main Plant & Machinery.

No assistance on spare & accessories of main plant & machinery.

Cost of Plant & Machinery

In case of imported machinery:- Following shall be included while calculating the value of plant & machinery cost:-
• Import Duty
• Custom charges
• GST

Term loan conditions:
Qualified lending institution PLI having general agreement (GA) with either SIDBI or NABARD and Nodal Banks
Sanction date During the operative period of scheme.
Manimum loan of machinery cost No limit
Tenure of loan (Minimum ) Until repayment of loan
Transfer of existing loan Not allowed untill receipt of subsidy.
Other Significant Points:-
Machinery life as Commercial Production The beneficiary unit will have to remain in commercial production for three years after installation of plant & machinery.
Benefits under other scheme:- MSEs availing subsidy under this scheme shall be eligible for all other types of subsidy except any other Central Government subsidy for technology up-gradation.
Where subsidy be credited/Kept Subsidy will be kept as TDS for 3 years from date of reference date. After completion of 3 years, subsidy amount will be credited in term loan account of beneficiary.
Location of Machinery​Anywhere in India​
Timeline for Machinery Installation​No time line
Machinery SpecificationTechnological upgraded

Amended Technology Upgradation Fund Scheme (ATUFs)

Ministry of Textiles, Government of India.

ACTIVITIES COVERED UNDER ATUFS FOR “BENCHMARKED MACHINERY” :-

Subsidy Cap:-

Sr. No.SegmentRate of capital investment subsidyCeiling /Maximum
1For Garmenting & Technical Textile, Embroidery including Standalone Embroidery Activity, made ups: 15% on Eligible Machineryup to Rs. 30 Crore
2For Weaving for brand new Shuttle-less Looms (including weaving preparatory & knitting), Processing, Jute, Silk and Handloom:10% on Eligible Machinery Max.up to Rs. 20 Crore
3For Composite unit / Multiple Segments: If the eligible capital investment of Garmenting & Technical Textile category is
3(a)More than 50% of the eligible project cost15% on Eligible Machinery up to Rs. 30 Crore
3(b)Less than 50% of the eligible project cost 10% on Eligible Machineryup to Rs. 20 Crore

When to apply

Within 6 Months of Sanction of TL (for obtaining UID) using i-ATUF

Plant & Machinery

New Plant & Machinery listed with government are qualified. Second hand machinery would not be eligible for assistance

Spare & Accesserioes of main Plant & Machinery.

Assistance on all accesserioes is available subject to maximum 20% of basic cost of plant & machinery

Source of Purchase for Plant of Machinery

directly purchase from registered manufacturer of machinery or registered authorised agent of such manufacturer

When to purchase

Machinery needs to be purchased after sanction of loan.

Cost of Plant & Machinery

Basic Cost of Plant & Machinery excluding Taxes, Duties and any other Charges.

Location of Machinery

Anywhere In india

Timeline for Machinery Installation

Within one year from date of sanction of term loan. Extension may be allowed.

Machinery Specification

Term loan conditions:
Qualified lending institutionIncludes Public Sector Banks, State financial corporation’s (SFC), State Industrial devlopment corporations (SIDCs), Scheduled banks, Cooperative Banks and NBFCs registered with RBI
Sanction date Prior to date of commercial invoice of plant & machinery
Manimum loan of machinery cost Minimum 50% of the total eligible machinery cost
Tenure of loan (Minimum ) “For MSMEs Minimum 03 Years For Non-MSMEs Minimum 05 Years”
Transfer of existing loan Yes, Subject to terms & conditions mentioned under Scheme.
Advance payment limit Advance payment up to the limit of his own share ( promotor contribution ) in machine cost can be made by applicant prior to sanction of finance.
Machinery life as Commercial Production The beneficiary unit will have to remain in commercial production for ten(10) years after installation of plant & machinery.
Benefits under other scheme:-Textile units are permitted to avail of benefits of State Government’s Schemes in addition to the benefit provided under this Scheme.
Where subsidy be creditedSubsidy amount will be directly credited in account of beneficiary.

Prime Minister’s Employment Generation Programme (PMEGP)

Ministry of Micro, Small and medium enterprises, Government of india

Subsidy Cap

1. FOR NEW MICRO ENTERPRISE

“Categories of beneficiaries under PMEDP ( for setting up of new enterprises )”Promotor’s ContributionRate of subsidy
Area ( location of project/unit ) Urban Rural
General Category 10%15%25%
Special Category5% 25%35%
Maximum Cost of project eligible for subsidy
SectorEligible Cost of project
For Manufacturing Sectors 50 Lakhs
For Service Sectors20 Lakhs

2. FOR 2ND LOAN UPGRADATION OF EXISTING PMEGP/ REGP / MUDRA UNITS

Categories of beneficiaries under PMEDP ( for upgradation of existing units )Promotor’s Contribution (of project cost)Rate of subsidy (of project cost)
All Categories 10% 15% (20% in NER and Hill States)
Maximum Cost of project eligible for subsidy
SectorEligible Cost of projectMaximum Subsidy benefit
For Manufacturing Sectors 100 Lakhs15 lacs (Rs.20 lakh for NERand Hill States )
For Service Sectors25 Lakhs3.75 lacs (Rs.5 lakh for NERand Hill States )

Project Cost:-

Cost of plant & machinery and Working capital are components of project cost, excluding land, subject to Working capital margin should not be more than 40% of project cost

Other important eligibility conditions

Plant & Machinery

Only new plant & machinery is eligible. Second hand machinery would not be eligible for assistance

Spare & Accesserioes of main Plant & Machinery.

Yes, assistance on spare & accessories of main plant & machinery is available.

Location of Machinery

Anywhere in India

Timeline for Machinery Installation

No time line

Machinery Specification

Technological upgraded
Term loan conditions:
Qualified lending institutiononly RBI approved bank is allowed
Sanction date
Maximum loan For General Category – 90% of Project Cost
For Special Category – 95% of Project Cost
Tenure of loan (Minimum )Between 3 to 7 years
Transfer of existing loanNot allowed
Project financed by more than one BanksUnit would not be eligible for assistance under PMEGP
Where subsidy be credited/KeptSubsidy will be kept as TDS for 3 years from date of reference date. After completion of 3 years, subsidy amount will be credited in term loan account of beneficiary.

Credit Linked Interest Subsidy Scheme

Ministry of Micro, Small and medium enterprises, Government of India.

Eligible entity:-

Applicable to only Micro and Small Enterprises (MSEs)
Eligible beneficiaries:-
  • Micro and Small Industries
  • Industry graduating from small to medium scale on account of sanction of additional term loan.

ACTIVITIES COVERED UNDER THIS SCHEME

  • Manufacturing
  • Service

SUBSIDY CAP

WHICH EVER IS LOWER

When to apply

END OF NEXT QUARTER FROM QUARTER IN WHICH LAST DISBURSEMENT TAKEN

How to Apply

Online Application and Tracking System has been introduced w.e.f. 01.10.2013. To claim subsidy under CLCSS, eligible MSEs are required to apply online through Primary Lending Institutions (PLIs), from where the MSEs avail term loan. The completed application is being uploaded by the PLI through Online Application and Tracking System to the attached Nodal Agency which, in turn, recommends the application online to Office of DC (MSME) for release of subsidy. After processing of application and subject to availability of funds, due approval is accorded from the Competent Authority with concurrence of Internal Finance Wing, after which funds are released to Nodal Agencies. Funds are then transferred by the Nodal Agencies to the PLIs where the account of the MSE is operated.

Plant & Machinery

New Benchmarked machinery is purchased from a notified lending agency would be eligible. Second hand machinery would not be eligible for assistance

Spare & Accesserioes of main Plant & Machinery.

No assistance on spare & accessories of main plant & machinery.

Cost of Plant & Machinery

“In case of imported machinery:- Following shall be included while calculating the value of plant & machinery cost:-
• Import Duty
• Custom charges
• GST”

Term loan conditions:
Qualified lending institution Implementing / Nodal Agencies : SIDBI, NABARD, SBI, Punjab National Bank, Bank of Baroda, Canara Bank, Corporation Bank, Indian Bank, Andhra Bank and TIICL
Sanction date During the operative period of scheme.
Manimum loan of machinery cost No limit
Tenure of loan (Minimum ) Not defined
Transfer of existing loan Yes, Subject to terms & conditions mentioned under Scheme.
Other Significant Points:-
Machinery life as Commercial Production The beneficiary unit will have to remain in commercial production until repayment of term loan.
Benefits under other scheme:- MSEs availing subsidy under this component of the scheme shall not be eligible to avail any other subsidy for technology up-gradation from the CentraljState/UT Government for the same purpose and vice versa.
Where subsidy be credited/Kept Subsidy will be kept as TDS for 3 years from date of reference date. After completion of 3 years, subsidy amount will be credited in term loan account of beneficiary.
Location of MachineryAnywhere in India
Timeline for Machinery InstallationNo time line
Machinery SpecificationTechnological upgraded

Aatmanirbhar Gujarat Schemes 2022 for Assistance to Industries

Industries & Mines Department Government of Gujarat

Benefits available to:-

  • New Unit
  • Expansion
Eligibile Units:-
  • Company
  • Partnership Firm
  • Limited Liability Partnership
  • Society
  • Trust
  • Industrial Co-operative Society
  • Proprietorship

New Enterprise

“New enterprise means msme commences commercial production during the operative period of this scheme. ( having valid udhyam registration )”

Expansion

“50% Increase in investment in gross fixed capital ( out of that at least 60% of investment is made in plant & machinery for which expansion is carried out ) and also increases its installed capacity by atleast 50% of existing projects ”

MSMEs (Based on FCI in Plant & Machinery)

Gross Fixed Capital Investment (GFCI)

“Means and includes Building, Plant & Machinery, Utilities, Tools & Equipment, and Other Asset (Excluding Land )”

ELIGIBLE FIXED CAPITAL INVESTMENT (EFCI)

IncludeExclude
New BuildingLand and land Development Cost
Other ConstructionWorking Capital
Plant & MachineryGoodwill
Project Related InfrastructureRoyalty
Preliminary and Pre-Operative Expense
Indigenous Second hand Plant & Machinery
Interst Capitalised
Power Generation Except for Captive Use
Rented and leased Property

Note: In case of MICRO & SMALL enterprise, investment towards component other than plant and machinery shall be limited only upto 35% of eligible FCI (Fixed capital investment)

Plant & Machinery

New plant & machinery is eligible. Imported Second hand machinery would be eligible for assistance subject to maximum remaining useful life of 10 years

Location of Machinery

Anywhere in Gujarat.

Qualified lending institution

Term loan from financial insitution / bank (Except NBFC) for acquisition of GFCI of enterprise.

Date of Commercial Production

NO.1: ASSISTANCE OF CAPITAL INVESTMENT SUBSIDY TO MICRO ENTERPRISE

Eligibility

CATEGORY OF TALUKA% ROI
CATEGORY 125% (Maximum Rs.35 lakhs)
CATEGORY 2 20% (Maximum Rs.30 lakhs)
CATEGORY 3 & MUNICIPAL CORPORATION AREAS10% (Maximum Rs.10 lakhs)

*FCI ( Fixed Capital Investment )

Conditions:-
Timeline for Application “Whichever is Later
►1 Year From First Disbursment of Loan
►1 Year From Commencement of Production
►1 Year From Date of Issue of this Government Resultion”
When to Credit SubsidyCapital Subsidy will be Paid Only after Commencement of Production
Benefits under other schemeIf Enterprise availed any benefits Under Central Goverment then Total Quantum Of Capital Investment Subsidy From State and Central Shall not exceed total loan amount disbured By Bank/ Financial Institution.

NO.2: ASSISTANCE OF INTEREST SUBSIDY TO MICRO, SMALL AND MEDIUM ENTERPRISE

Eligibility

CATEGORY OF TALUKA% ROIPERIOD
CATEGORY 17%7 Year
CATEGORY 2 6%6 Year
CATEGORY 3 & MUNICIPAL CORPORATION AREAS5%5 Year

ADDITIONAL 1% INTEREST SUBSIDY TO SPECIFIED ENTERPRISE

*FCI ( Fixed Capital Investment )

Conditions:-
ADDITIONAL 1% INTEREST SUBSIDY TO SPECIFIED ENTERPRISE ►Differently Abled Enterpreneur
►Woman Enterpreneur”
►Registered Startup
►Young Enterpreneur (Below 35 Years on Date of Sanction of loan)
►Enterprise needs to bear minimum 2% Interest of loan
Timeline for Application “Whichever is Later
►1 Year From First Disbursment of Loan
►1 Year From Commencement of Production
►1 Year From Date of Issue of this Government Resultion
Date of availment of SubsidyFrom Date of 1st Disbursement OR From Date of commencement of production
Benefits under other schemeIf Enterprise availed any benefits Under Central Goverment then Total Quantum Of Interest Subsidy From State and Central Shall not exceed total interest amount charged By Bank/ Financial Institution.
Reimbursement of SubsidyAfter commencement of Production

NO.3: NET SGST REIMBURSEMENT TO MICRO, SMALL AND MEDIUM MANUFACTURING ENTERPRISE

Eligibility

CATEGORY OF TALUKA% ROIUP TO ….% OF FCI P.A.
CATEGORY 1100%7.50%
CATEGORY 2 90%6.50%
CATEGORY 3 & MUNICIPAL CORPORATION AREAS80%5%

*FCI ( Fixed Capital Investment )

Conditions:-
Timeline for Application “Whichever is Later
►1 Year From First Disbursment of Loan
►1 Year From Commencement of Production
►1 Year From Date of Issue of this Government Resultion”
Date of availment of Subsidy“Date of 1st Disbursement OR Date of commencement of production”
Separate registrationService enterprise should have to registration under applicable ACT
Separate Books of accounts If MSMEs having multiple manufacturing units, then have to maintain separate books of accounts and also certified by CA
Reimbursement of Subsidy Quarterly Basis

OTHER INCENTIVE SCHEME

Scheme for Assistance to Strengthen Specific Sector in the Textile Value Chain

“Industries & Mines Department Government of Gujarat”

Definitions:-

New Enterprise

New enterprise means an enterprise which has been set up as a new project and commences commercial production of eligible activity as mentioned in this resolution during the operative period of this scheme.

For Expansion

“25% Increase in investment in gross fixed capital / plant & mcahinery & enterprise has reached utilisation of installed capacity extent of at least 75% in any one of the immediately preceding two financial years.”

Gross Fixed Capital

Means and includes Building, Plant & Machinery, Electrifications, Tools & Equipment, Accessories and Utilities ( Excluding Land )

Eligible Activities

ELIGIBLE ACTIVITYIN-ELIGIBLE ACTIVITY
WEAVING GINNING
KNITTING SPINNING
DYEING & PRINTING( PROCESSING) “GARMENT AND APPAREL (ELIGIBLE UNDER OTHER POLICY)”
MACHINE CARPENTING ENTERPRISE IN SEZ
“TECHNICAL TEXTILE ( EXCLUDING WOVEN SACKES)”
MADE UPS
“COMPOSITE UNIT ( EXCLUDING GINNING, SPINNING, GARMENT AND APPAREL)”
ALL OTHER OF TEXTILE CHAIN

NO.1: INTEREST SUBSIDY

CATEGORYNO OF EMPLOYEESINTEREST SUBSIDY
MSME NA 6%
“LARGE (NEED DIRECT EMPLOYMENT)”UPTO 100 4%
>100 UPTO 200 5%
>200 UPTO 500 5%
MORE THAN 500 6%
MAXIMUM CAP 20 crore Per annum
ELIGIBILITY PERIOD FOR 5 YEARS from the date of commencement of commercial production

NO.2: POWER TARIFF SUBSIDY

CategoryFOR WEAVING ACTIVITYFOR OTHER
Rs.3 /PER unit Consumed — FOR LT Connection 2 PER KWH — FOR LT
Rs.2 /PER Unit consumed – FOR HT Connection 2 PER KWH — FOR HT
ELIGIBILITY PERIOD FOR 5 YEARS from the date of commencement of commercial production

When to apply

“Within one year from the date of first disbursement of term loan OR the date of commencement of commercial production, Whichever is LATER.”

Plant & Machinery

Only new plant & machinery is eligible. Second hand machinery would not be eligible for assistance

Qualified lending institution

“Term loan from commercial/cooperative bank or Financial lnstitution approved by RBl.”

Disbursement date

Term Loan should not be disbursed after one year from Date of Commencement of Commercial Production.

Benefits under other scheme:-

lnterest Subsidy will be in addition to any other incentives available under any other scheme of Govemment of lndia. However, total lnterest Subsidy from State and Centre should not exceed the actual interest paid by the enterprise.

Where subsidy be credited/Kept

Subsidy amount will be directly credited in account of beneficiary.

OTHER INCENTIVE SCHEME

Scheme for assistance to MSME

“Industries & Mines Department Government of Gujarat”
Benefits available to:-
  • New Unit
  • Expansion
Definitions:-

NO.1: Capital Investment Subsidy

Only For Manufacturing Unit
CATEGORY OF TALUKA% OF TERM LOANMAXIMUM
CATEGORY 125%35 LAKH
CATEGORY 2 20%30 LAKH
CATEGORY 3 & MUNICIPAL CORPORATION AREAS10%10 LAKH
Enterprise will not eligible for this assistance, if loan is sanctioned after one year from date of commencement of production
if unit availed any benefit under central scheme then total quantum of capital subsidy from state & central shall not exceed total loan amount disbursed by f.i.

NO.2: Interest Subsidy

For Manufacturing Unit and New Service Enterprise
CATEGORY OF TALUKA% ON TERM LOANMAXIMUMPERIOD
CATEGORY 17%35 LAKH P.A. 7 YEAR
CATEGORY 2 6%30 LAKH P.A. 6 YEAR
CATEGORY 3 & MUNICIPAL CORPORATION AREAS5%25 LAKH P.A. 5 YEAR

ADDITIONAL 1% INTEREST SUBSIDY TO SPECIFIED ENTERPRISE

Conditions:-

When to apply

“Within one year from the date of first disbursement of term loan or date of commencement of commercial production, whichever is later.”

Plant & Machinery

New plant & machinery is eligible. Imported Second hand machinery would be eligible for assistance.

Location of Machinery

Anywhere in Gujarat

Qualified lending institution

Term loan from financial insitution / bank (Except NBFC) for acquisition of GFCI of enterprise.

Disbursement

Term Loan should not be disbursed after one year from Date of Commencement of Commercial Production.

Production date

During the operative period of scheme.

Machinery life as Commercial Production

The beneficiary unit will have to remain in commercial production for Seven years after installation of plant & machinery.

Benefits under other scheme:-

lnterest Subsidy will be in addition to any other incentives available under any other scheme of Govemment of lndia. However, total lnterest Subsidy from State and Centre should not exceed the actual interest paid by the enterprise.

Where subsidy be credited/Kept

Subsidy amount will be directly credited in account of beneficiary.

OTHER INCENTIVE SCHEME

Electric Duty Exemption (EDE)

“Energy & Petrochemicals Department, Govt. of Gujarat”

 Operative period of scheme

  • There is not any operative period for this particular scheme

 Who will be eligible?

  • Any New or Existing manufacturing Enterprise.
  • For carrying out expansion by existing enterprise with investment in fixed capital more than 50% of its existing gross fixed capital investment in Plant & machinery & Building as on date of initiation of expansion

Assistance available

Basic Conditions of Scheme

Textile Policy 2019

The Textiles industry is the second most important economic activity in terms of employment generation after agriculture. the State Govemment analysed the existence of all segments in the textile value chain and identified gaps in certain segments. After careful consideration, Government has decided to come out with a new scheme to strengthen the value chain and extend support to Textile lndustry in the State of Gujarat.

Scheme for assistance to MSME 2020

The Industrial Policy 2020 envisions Gujarat as a global business destination for next-generation sustainable manufacturing and service industry that stimulates sustainable devlopment, inclusive and a balanced regional growth.

Electric Duty Exemption

For the development of the state, electricity infrastructure is an essential and basic need. It is expedient to exempt duty on consumption of electrical energy for industrial undertaking.