To facilitate credit linkages for SC/ST enterpreneurs Providing handholding and mentoring support Undertaking outreach activities for the promotion of scheme
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..
To generate employment opportunities in rural as well urban areas of the country through setting up of new self- employment ventures/projects/micro enterprises.
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.
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.
Form of Enterprise | Mininum Holding % (SC/ST ) |
---|---|
Proprietorship MSEs | 100% |
Partnership MSEs | 51% |
Private Limited | 51% |
Manufacturing Service SCLCSS subsidy shall not be applicable for trading activities.
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 Specification | Technological upgraded |
Sr. No. | Segment | Rate of capital investment subsidy | Ceiling /Maximum |
---|---|---|---|
1 | For Garmenting & Technical Textile, Embroidery including Standalone Embroidery Activity, made ups: | 15% on Eligible Machinery | up to Rs. 30 Crore |
2 | For 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 |
3 | For Composite unit / Multiple Segments: If the eligible capital investment of Garmenting & Technical Textile category is | ||
3(a) | More than 50% of the eligible project cost | 15% on Eligible Machinery | up to Rs. 30 Crore |
3(b) | Less than 50% of the eligible project cost | 10% on Eligible Machinery | up to Rs. 20 Crore |
Term loan conditions: | |
---|---|
Qualified lending institution | Includes 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 credited | Subsidy amount will be directly credited in account of beneficiary. |
“Categories of beneficiaries under PMEDP ( for setting up of new enterprises )” | Promotor’s Contribution | Rate of subsidy | |
---|---|---|---|
Area ( location of project/unit ) | – | Urban | Rural |
General Category | 10% | 15% | 25% |
Special Category | 5% | 25% | 35% |
Sector | Eligible Cost of project |
---|---|
For Manufacturing Sectors | 50 Lakhs |
For Service Sectors | 20 Lakhs |
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) |
Sector | Eligible Cost of project | Maximum Subsidy benefit | |
---|---|---|---|
For Manufacturing Sectors | 100 Lakhs | 15 lacs (Rs.20 lakh for NERand Hill States ) | |
For Service Sectors | 25 Lakhs | 3.75 lacs (Rs.5 lakh for NERand Hill States ) |
Term loan conditions: | |
---|---|
Qualified lending institution | only 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 loan | Not allowed |
Project financed by more than one Banks | Unit would not be eligible for assistance under PMEGP |
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. |
“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 Machinery | Anywhere in India |
Timeline for Machinery Installation | No time line |
Machinery Specification | Technological upgraded |
Benefits available to:-
Include | Exclude |
---|---|
New Building | Land and land Development Cost |
Other Construction | Working Capital |
Plant & Machinery | Goodwill |
Project Related Infrastructure | Royalty |
Preliminary and Pre-Operative Expense | |
Indigenous Second hand Plant & Machinery | |
Interst Capitalised | |
Power Generation Except for Captive Use | |
Rented and leased Property |
CATEGORY OF TALUKA | % ROI |
---|---|
CATEGORY 1 | 25% (Maximum Rs.35 lakhs) |
CATEGORY 2 | 20% (Maximum Rs.30 lakhs) |
CATEGORY 3 & MUNICIPAL CORPORATION AREAS | 10% (Maximum Rs.10 lakhs) |
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 Subsidy | Capital Subsidy will be Paid Only after Commencement of Production | |
Benefits under other scheme | If 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. |
CATEGORY OF TALUKA | % ROI | PERIOD |
---|---|---|
CATEGORY 1 | 7% | 7 Year |
CATEGORY 2 | 6% | 6 Year |
CATEGORY 3 & MUNICIPAL CORPORATION AREAS | 5% | 5 Year |
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 Subsidy | From Date of 1st Disbursement OR From Date of commencement of production | |
Benefits under other scheme | If 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 Subsidy | After commencement of Production |
CATEGORY OF TALUKA | % ROI | UP TO ….% OF FCI P.A. |
---|---|---|
CATEGORY 1 | 100% | 7.50% |
CATEGORY 2 | 90% | 6.50% |
CATEGORY 3 & MUNICIPAL CORPORATION AREAS | 80% | 5% |
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 registration | Service 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 |
ELIGIBLE ACTIVITY | IN-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 |
CATEGORY | NO OF EMPLOYEES | INTEREST 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 |
Category | FOR WEAVING ACTIVITY | FOR 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 |
CATEGORY OF TALUKA | % OF TERM LOAN | MAXIMUM |
---|---|---|
CATEGORY 1 | 25% | 35 LAKH |
CATEGORY 2 | 20% | 30 LAKH |
CATEGORY 3 & MUNICIPAL CORPORATION AREAS | 10% | 10 LAKH |
CATEGORY OF TALUKA | % ON TERM LOAN | MAXIMUM | PERIOD |
---|---|---|---|
CATEGORY 1 | 7% | 35 LAKH P.A. | 7 YEAR |
CATEGORY 2 | 6% | 30 LAKH P.A. | 6 YEAR |
CATEGORY 3 & MUNICIPAL CORPORATION AREAS | 5% | 25 LAKH P.A. | 5 YEAR |
Operative period of scheme
Who will be eligible?
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.
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.
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.