Yes, loans sanctioned by banks or financial institutions in accordance with RBI guidelines for industries located in U.T. are eligible for subsidy under this scheme.

The Enterprise will not be eligible for Interest Subsidy if the term loan is sanctioned after one year from the date of commencement of commercial production.

Interest subsidy will be eligible either from the date of the first disbursement of the loan or from the date of commencement of commercial production, whichever is later. However, reimbursement of interest subsidy shall be made only after the commencement of commercial production of the enterprise.

If the Enterprise becomes a defaulter in the payment of interest or installment of term loan to the Bank/Financial institution as per the guidelines of RBI and as mentioned in the certificate of the Bank/Financial institution, such default period will be deducted.

The interest subsidy is applicable solely to the interest charged by financial institutions or banks on loans.

No, penal interest and other bank charges are not eligible for the interest subsidy.

Yes, the eligible enterprise must bear a minimum of 2% interest on term loans provided by any bank or financial institution.

The enterprise is required to submit details and an undertaking confirming their compliance with the minimum interest requirement.

The interest subsidy is directly credited to the respective bank or financial institution that provided the loan.

If a newly setup enterprise is sold or otherwise transferred to a new owner during the period of five years, the benefit of the incentive shall be available to such transferee or the new owner, only for the unexpired portion.

Expansion/Diversification means where an existing / New Enterprise increases its investment by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing Gross Fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme. Only one Expansion / Diversification will be eligible for assistance during the operative period of the Scheme.

Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

The operative period of scheme is from 20.05.2022 till 5 years that is 19.05.2027.

The enterprise can avail benefit commencing from date of production till 5 years even if that period falls beyond operative period.

The timeline to make application is within one year of first disbursement of loan or within one year of production whichever is later. the application submitted after one year will not be entitled to capital and interest subsidy.

The eligible unit can apply by visiting single window portal website which is “swp.dddgov.in”, and once page pops-up the user have to go to departments tab and select district industries tab under which the user have to click on apply for investment promotion scheme: 2022 to 2027.

In case of Manufacturing Sector, Gross Fixed Capital Investment means the investment made in building, plant and machinery, utilities, tools and equipment, and other assets (excluding Land) required for manufacturing the end product. In case of Service Sector, the Gross Fixed Capital Investment means the investment made in plant and machinery, utilities, tools and equipment, and other assets (excluding land and building) required for the services provided.

Yes. The unit can select any one scheme to avail benefits if it comes under the eligibility of more than one scheme. However, units cannot apply for benefits for the similar subsidy in multiple schemes and can apply in schemes which are complementary in nature.

Dedicated industrial parks are mentioned in food processing incentives where an additional 10% will be accorded to food processing units setup in industrial parks having only food processing industries.