Only Gross Fixed Capital Investment (GFCI) made in new buildings, new plant & machinery, equipment, and machineries (excluding land) are eligible for incentives for manufacturing.

Enterprises must furnish information regarding production, sales, turnover, and employment, etc., to the concerned District Industries Centre (DIC) before the end of September each year.

Enterprises must observe pollution control measures as prescribed by the Pollution Control Committee (PCC) or other competent authorities.

Enterprises must remain in production for 5 years from the date of commercial production. If an enterprise fails to continue production for 5 years, the amount of the Capital Investment Subsidy disbursed will be recovered as arrears of land revenue.

Out of diversification and expansion, only one activity will be eligible for subsidy once during the policy period.

An existing or new enterprise carrying out an activity of expansion or diversification with an investment more than 50% of the GFCI (with at least 60% of this investment in plant & machinery) will be eligible.

Enterprises must furnish Chartered Accountant certified bills to claim the subsidy.

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 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.