Subsidies
the accurate venture
is providing consultancy in following different types of
subsidy schemes.
 | 1. Credit Linked Capital Subsidy Scheme (CLCSS) |
The Ministry of Small Scale Industries (SSI) is operating a scheme for technology upgradation of Small Scale Industries (SSI) called the Credit Linked Capital Subsidy Scheme (CLCSS). The Scheme aims at facilitating technology upgradation by providing upfront capital subsidy to SSI units, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed of by them for modernisation of their production equipment (plant and machinery) and techniques. The Scheme (post-revised) provided for 15 per cent capital subsidy to SSI units, including tiny units, on institutional finance availed of by them for induction of well established and improved technology in selected sub-sectors/products approved under the Scheme. The eligible amount of subsidy calculated under the pre-revised scheme was based on the actual loan amount not exceeding Rs.100 lakh.
Click here for detailed Guidelines
| | 2. Credit Guarantee Fund Scheme for MSME (CGTMSE) |
Availability of bank credit without the hassles of collaterals / third party guarantees would be a major source of support to the first generation entrepreneurs to realise their dream of setting up a unit of their own Micro and Small Enterprise (MSE). Keeping this objective in view, Ministry of Micro, Small & Medium Enterprises (MSME), Government of India launched Credit Guarantee Scheme (CGS) so as to strengthen credit delivery system and facilitate flow of credit to the MSE sector. To operationalise the scheme, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
The main objective is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The other objective is that the lender availing guarantee facility should endeavor to give composite credit to the borrowers so that the borrowers obtain both term loan and working capital facilities from a single agency. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 75 / 80/ 85 per cent of the credit facility.
Any collateral / third party guarantee free credit facility (both fund as well as non fund based) extended by eligible institutions, to new as well as existing Micro and Small Enterprise, including Service Enterprises, with a maximum credit cap of Rs.100 lakh (Rupees Hundred lakh only) are eligible to be covered.
The guarantee cover available under the scheme is to the extent of 75% / 80% of the sanctioned amount of the credit facility, with a maximum guarantee cap of Rs.62.50 lakh / Rs. 65 lakh. The extent of guarantee cover is 85% for micro enterprises for credit up to Rs.5 lakh.
The extent of guarantee cover is 80%(i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in the North East Region (NER). In case of default, Trust settles the claim up to 75% (or 80%) of the amount in default of the credit facility extended by the lending institution.
Click here for detailed Guidelines
| | 3. Technology Upgradation Fund Scheme (TUFS) |
The Technology Upgradation Fund Scheme (TUFS), which is the “flagship” Scheme of the
Ministry of Textiles, is the scheme for modernisation and technology upgradation in the
textile sector. This Scheme aims at making available funds to the domestic textile industry
for technology upgradation of existing units as well as to set up new units with state-of the-
art technology so that its viability and competitiveness in the domestic as well as
international markets may enhance.
Introduction of scheme
Technology Upgradation Fund Scheme (TUFS) was first introduced in the year 1999 to catalyze investments in all the sub sectors of textile and jute industries by way of 5% interest reimbursement. This scheme was approved from April, 1999 to 31st March, 2004. Subsequently, the scheme was modified in 2004 and again in 2007. It was further restructured for the period from April, 2011 to March, 2012 and was known as Restructured Technology Upgradation Fund Scheme (R-TUFS). Now, in 2013, it was again revised and presented as Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) for the period from 01.04.2013 to 31.03.2017.
Tenure of Scheme: From 01.04.2013 to 31.03.2017
Benefit under Scheme
| Sr. No | | Eligibility | Interest Reimbursement(IR)/ Capital Subsidy (CS)/ Margin money Subsidy (MMS) | Conditions |
| 1 | | Stand alone spinning units | 2% (IR) | For new stand alone / replacement / modernization of spinning machinery. |
| 2 | | units having spinning capacity with forward integration | 5% (IR) | Having matching capacity in weaving/ knitting/processing/garmenting |
| 3 | | Weaving | | |
| A | brand new shuttle less looms for power loom sector | 6% (IR) + 15% (CS) Or 30% (MMS) | For 30% MMS Capital ceiling caps of RS. 5 crore and subsidy cap of Rs. 1.5 crore would be adhered to for encouraging adequate investments by the MSME sector. |
| B | second hand imported shuttle less looms | 2% (IR) or 8% (MMS) | with 10 years vintage and with a residual life of minimum 10 years; |
| 3 | | Processing | 5% (IR) + 10% (CS) | Specified processing machinery. CETP/ETP will not be considered for support under TUFS. |
| 4 | | Garmenting | 5% (IR) + 10% (CS) | On specified machinery for garmenting units. |
| 5 | | Technical Textiles (including non-wovens) | 5% (IR) + 10% (CS) | On specified machinery required in manufacture on technical textiles. |
| 6 | | Handloom and silk sector | 5% (IR) or 30% (CS) | On benchmarked machinery |
| 7 | | MSMEs including jute sector | 5%(IR) or 15%(MMS) | Subsidy ceiling to be Rs. 75 lakh |
| 8 | | Other segments | | |
| A | cotton ginning and pressing; | 5%(IR) | |
| B | wool scouring; combing and carpet industry | 5%(IR) | |
| C | synthetic filament yarn texturising, crimping and twisting | 5%(IR) | |
| D | viscose staple fibre and viscose filament yarn | 5%(IR) | |
| E | knitting and fabric embroidery | 5%(IR) | |
| F | weaving preparatory machines | 5%(IR) | |
| G | made-up manufacturing | 5%(IR) | |
| H | CAD, CAM and design studio | 5%(IR) | |
| I | jute industry | 5%(IR) | |
Tenure of Interest reimbursement
Interest reimbursement will be for a period of 7 years including 2 years of moratorium / implementation.
Click here for detailed information
| | 4. Prime Minister’s Employment Generation Programme (PMEGP) |
Prime Minister’s Employment Generation Programme (PMEGP) scheme announced by Hon’ble Prime Minister of India on 15th August, 2008. This is credit linked Scheme of Govt. of India by merging erstwhile REGP and PMRY scheme. KVIC is the Nodal Agency at National Level.
Objective of Scheme
- To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country.
- To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
- To facilitate participation of financial institutions for higher credit flow to micro sector.
Eligibility
It will be available only to new units to be established
Maximum project cost under this scheme will be of Rs. 25.00 lakh in manufacturing sector and Rs. 10.00 lakhs in Service Sector.
Loan amount
Loan amount under this scheme will be up to 90%/95%
Rate of Subsidy
Subsidy available under this scheme will be up to 15%/ 25%/35%
Click here for detailed information
the accurate venture
also assists in various other state government and central government subsidies.
