capital investment subsidy

What is Capital Investment Subsidy?

  • Under this Scheme, capital subsidy on loan amount is available to existing as well as new Micro, Small and Medium Enterprises (MSME) for investment in Technical Civil Works and Plant & Machinery.

For Investment up to Rs.50 lakh in Plant & Machinery

  • @ 15% of term loan with a ceiling of Rs. 15.00 lakh within Municipal Corporation Area.
  • @ 20% of term loan with a ceiling of Rs. 25.00 lakh outside Municipal Corporation Area.

For Investment above Rs.50 lakh and up to Rs. 2 crore in Plant & Machinery

  • @ 12% of term loan with a ceiling of Rs. 15.00 lakh within Municipal Corporation Area.
  • @ 17% of term loan with a ceiling of Rs. 25.00 lakh outside Municipal Corporation Area.

For Investment above Rs.2 crore and up to Rs. 10 crore in Plant & Machinery

  • @ 10% of term loan with a ceiling of Rs. 15.00 lakh within Municipal Corporation Area.
  • @ 15% of term loan with a ceiling of Rs. 25.00 lakh outside Municipal Corporation Area.

Eligibility Criteria

• Service sector will not be eligible.
• Enterprise has to apply to concerned DIC within 1 year from the date of 1st disbursement of term loan or before the date of commencement of commercial      production,    whichever is later.
• Subsidy will be released only after commencement of commercial production.
• Enterprise has to remain in production for 5 years from the date of commencement of commercial production.

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