State Government Benefits (Subsidy)
STATE GOVERNMENT BENEFITS (SUBSIDY) - GUJARAT
Scheme For Assistance to Micro, Small And Medium Enterprise (MSME) is governed by Industries and Mines Department.
New / Existing (Expansion, Diversification, Modernization) MSME enterprise having Udyog Aadhar Memorandum / Udyog Registration are eligible under this scheme in accordance with the guidelines of this scheme.
Financial assistance under this scheme will be as below :
1. Assistance of Capital Subsidy
CATEGORY |
ASSISTANCE |
Investment up to Rs. 50 Lakh in Plant & Machineries |
@15% of Term Loan amount (Max Limit Rs. 15 Lakhs), in Municipal Corporation Area
@20% of Term Loan amount (Max Limit Rs. 25 Lakhs), in other area outside Municipal Corporation Area |
Investment from Rs. 50 Lakh up to Rs. 2 Crore in Plant & Machineries |
@12% of Term Loan amount (Max Limit Rs. 15 Lakhs), in Municipal Corporation Area
@17% of Term Loan amount (Max Limit Rs. 25 Lakhs), in other area outside Municipal Corporation Area |
Investment from Rs. 2 Crore up to Rs. 10 Crore in Plant & Machineries |
@10% of Term Loan amount (Max Limit Rs. 15 Lakhs), in Municipal Corporation Area
@15% of Term Loan amount (Max Limit Rs. 25 Lakhs), in other area outside Municipal Corporation Area |
2. Assistance of Interest Subsidy
CATEGORY |
ASSISTANCE |
Investment up to Rs. 10 Crore in Plant & Machineries |
Interest Subsidy @5% on Term Loan with maximum limit of Rs. 25 Lakh per annum for a period of 5 years, in Municipal Corporation Area
Interest Subsidy @7% on Term Loan with maximum limit of Rs. 30 Lakh per annum for a period of 5 years, in other area outside Municipal Corporation Area |
Notes for Interest Subsidy
(a) 1% additional interest subsidy to differently abled entrepreneur, woman entrepreneur in manufacturing and service sector.
(b) 1% additional interest subsidy to young entrepreneur below age of 35 as on the date of sanction of term loan.
(c) Only new MSME of service sector which are listed in the annexure of the circular will be eligible for Interest subsidy @5% with the maximum limit of Rs. 25 Lakh per annum for 5 years on the term loan for machinery & equipment.
Disclaimer - We have made all the efforts to avoid errors or omission in the above content. In spite of this there may be chances for its occurrence. So it is suggested that to avoid any doubt reader should cross-check all the facts, law and contents with the Original Government Publications, Guidelines or Notifications issued time to time.
New enterprise, expansion and backward / forward integration will be eligible
Following manufacturing activities will be considered eligible for incentive under the scheme :
(a) Weaving, including preparatory (excluding woven sacks)
(b) Knitting
(c) Dyeing / Printing (Processing)
(d) Machine Carpeting
(e) Technical Textile (excluding woven sacks in any form of packtech)
(f) Made-ups
(g) In case of composite unit, activities excluding ginning, spinning, garments and apparel
(h) All other activities of Textile value chain – Crimping, Twisting, Texturizing, Thread, Sizing, Winding, Machine Embroidery
1. Assistance of Interest Subsidy
CATEGORY |
NO. OF EMPLOYEES |
INTEREST SUBSIDY |
MSME ENTERPRISE |
- |
6% |
LARGE ENTERPRISE |
Providing direct employment up to 100 persons |
4% |
Providing direct employment to more than 100 and up to 200 persons |
4.50% |
|
Providing direct employment to more than 200 and up to 500 persons |
5% |
|
Providing direct employment to more than 500 persons |
6% |
Notes for Interest Subsidy
(a) Interest subsidy will be maximum up to Rs. 20 Crores per annum.
(b) Eligible period for Interest subsidy will be 5 years
2. Power Tariff Subsidy
ACTIVITY |
POWER TARIFF SUBSIDY |
Weaving |
LT power connection – Rs. 3/- per unit HT power connection – Rs. 2/- per unit |
Others |
LT power connection – Rs. 2/- per unit HT power connection – Rs. 2/- per unit |
Disclaimer - We have made all the efforts to avoid errors or omission in the above content. In spite of this there may be chances for its occurrence. So it is suggested that to avoid any doubt reader should cross-check all the facts, law and contents with the Original Government Publications, Guidelines or Notifications issued time to time.
New / Existing MSME enterprise having Udyog Aadhar Memorandum / Udyog Registration is eligible under this scheme in accordance with the guidelines of this scheme.
Financial assistance under this scheme will be as below :
1. Assistance of Capital Subsidy for Manufacturing Units
CATEGORY |
ASSISTANCE |
Category I Taluka |
@25% of Term Loan amount (Max Limit Rs. 35 Lakhs), if eligible Fixed Capital Investment is over Rs. 10 Cr. then additional Rs. 10 Lakh |
Category II Taluka |
@20% of Term Loan amount (Max Limit Rs. 30 Lakhs), if eligible Fixed Capital Investment is over Rs. 10 Cr. then additional Rs. 7.50 Lakh |
Category III Taluka & Municipal Corporation Area |
@10% of Term Loan amount (Max Limit Rs. 10 Lakhs), if eligible Fixed Capital Investment is over Rs. 10 Cr. then additional Rs. 5 Lakh |
2. Assistance of Interest Subsidy for Manufacturing Units
CATEGORY |
ASSISTANCE |
Category I Taluka |
Interest Subsidy @7% on Term Loan with maximum limit of Rs. 35 Lakh per annum for a period of 7 years |
Category II Taluka |
Interest Subsidy @6% on Term Loan with maximum limit of Rs. 30 Lakh per annum for a period of 6 years |
Category III Taluka & Municipal Corporation Area |
Interest Subsidy @5% on Term Loan with maximum limit of Rs. 25 Lakh per annum for a period of 5 years |
Notes for Interest Subsidy (Manufacturing Units)
(a) 1% additional interest subsidy to differently abled entrepreneur, woman entrepreneur and registered start-ups.
(b) 1% additional interest subsidy to young entrepreneur below age of 35 as on the date of sanction of term loan.
(c) Existing enterprise which installs Solar Power Plant or other renewable power plant for Captive Consumption will be eligible for Interest Subsidy according to their location of Enterprise.
3. Assistance of Interest Subsidy for Service Units (Only new MSME of service sector which are listed in the annexure of circular)
CATEGORY |
ASSISTANCE |
Category I Taluka |
Interest Subsidy @7% on Term Loan with maximum limit of Rs. 35 Lakh per annum for a period of 7 years |
Category II Taluka |
Interest Subsidy @6% on Term Loan with maximum limit of Rs. 30 Lakh per annum for a period of 6 years |
Category III Taluka & Municipal Corporation Area |
Interest Subsidy @5% on Term Loan with maximum limit of Rs. 25 Lakh per annum for a period of 5 years |
Notes for Interest Subsidy (Service Units)
(a)1% additional interest subsidy to registered Start-ups
Disclaimer - We have made all the efforts to avoid errors or omission in the above content. In spite of this there may be chances for its occurrence. So it is suggested that to avoid any doubt reader should cross-check all the facts, law and contents with the Original Government Publications, Guidelines or Notifications issued time to time.
Period :
05.10.2022 to 04.10.2027
Eligibility:
New Enterprise - Any new enterprise that commenced commercial production / rendering of services during this period is eligible for the benefits.
Existing Enterprise (Expansion) - Any existing enterprise that fulfill the below conditions:
- increase its investment in gross fixed capital (GFCI) by at least 50% of its existing project in the same premises, of which 60% of investment in Plant and Machinery
- increases its installed capacity by at least 50% of existing product
- reached the utilization of existing installed capacity at least to the extent of 75% in any one of the preceding three financial years
Existing Enterprise (Diversification) - Any existing / new enterprise engaged in manufacturing diversifies its production line and fulfill the below conditions:
- in case of Micro and Small enterprises - increase investment in gross fixed capital (GFCI) by at least 25% of its existing project, of which at least 60% of investment in plant and machinery.
- in case of Medium enterprises - increase investment in gross fixed capital (GFCI) by at least 50% of its existing project, of which at least 60% of investment in plant and machinery.
Definitions:
Micro, Small and Medium enterprise - An enterprise which has fixed capital investment in Plant and Machinery as follows:
- Micro - less than or equal to INR 1 crore
- Small - more than INR 1 crore and less than or equal to INR 10 crore
- Medium - more than INR 10 crore and less than or equal to INR 50 crore
Gross Fixed Capital Investment (GFCI) - Gross Fixed Capital Investment means investment made in building, plant and machinery, utilities, tools and equipment and other assets (excluding land) required for manufacturing end product / rendering of services.
Eligible Fixed Capital Investment (eFCI) - Eligible Fixed Capital Investment means investment made on or after 05.10.2022 and during the extended time period of 12 months from the date of commencement of commercial production / rendering services.
- New Building
- Other Construction
- Plant and Machinery
- Project related infrastructure
In case of Micro and Small enterprises, investment towards component other than Plant and Machinery shall be limited only up to 35% of eligible FCI.
Ineligible Capital Expenditure / Assets:
- Land & Land development cost
- Working Capital
- Goodwill
- Royalty
- Preliminary and pre-operative expenses
- Indigenous second-hand plant and machinery
- Interest capitalized
- Power generation, except for captive use
- Rented or leased property
Benefits:
Government resolution link:
https://ic.gujarat.gov.in/documents/commondoc/2022/Atmanirbhar%20Gujarat%20Scheme%20for%20assistance%20to%20MSMEs.pdf
Disclaimer - We have made all the efforts to avoid errors or omission in the above content. In spite of this there may be chances for its occurrence. So it is suggested that to avoid any doubt reader should cross-check all the facts, law and contents with the Original Government Publications, Guidelines or Notifications issued time to time.
New / Existing enterprise is eligible under this scheme in accordance with the guidelines of this scheme.
Financial assistance under this scheme will be as below :
(a) 10% Electric Duty Exemption for LT Connection and 15% for HT connection for 5 years.
(b) Benefit will start from the date of commercial production.
Disclaimer - We have made all the efforts to avoid errors or omission in the above content. In spite of this there may be chances for its occurrence. So it is suggested that to avoid any doubt reader should cross-check all the facts, law and contents with the Original Government Publications, Guidelines or Notifications issued time to time.
STATE GOVERNMENT BENEFITS (SUBSIDY) - MAHARASHTRA
New / Existing (Expansion, Diversification, Modernization) enterprise are eligible in accordance with the guidelines issued by the Government of Maharashtra.
Textile components included in Textile Policy 2018-23 :
(a) Cotton ginning and pressing
(b) Spinning / silk reeling and twisting / integrated silk park / synthetic filament / yarn texturing, crimping and twisting
(c) Weaving and powerloom
(d) Technical textile, non-woven and converters of non-woven
(e) Knitting / hosiery / garment / apparel & made-up
(f) Processing of fiber / yarn / fabric / garments / made-ups
(g) Processing of non-conventional fiber / yarn / fabrics / garments / made-ups (bamboo, banana, ghaypat, maize, coir, hemp, etc)
(h) Expansion of existing textiles units
(i) Textile Parks / processing parks
(j) Energy saving and process control equipment for various textile sectors
(k) Skill development activities
(l) Wool sector (i.e. scouring,combing, spinning (worsted, shoddy and woolen) and weaving and carpet sector.
(m) Standalone spinning
(n) Spinning with matching downstream capacity
(o) Manufacturing viscose filament yarn / viscose staple fiber
(p) Independent weaving preparatory
(q) Embroidery on standalone basis
(r) Composite upgradation (i.e. units going for upgradation in spinning, weaving / knitting and processing)
(s) Multi-activities (units with two or more activities simultaneously except composite upgradation mentioned above)
(t) Composite unit
(u) Other units of textile industry not mentioned herein
Assistance of Subsidy: Capital Subsidy in lieu of Interest Subsidy - The policy of capital subsidy in lieu of Interest subsidy to the new, expansion & diversification / modernization projects undertaken during the Textile Policy 2011-17 will be continued with modifications in the Textile Policy 2018-23. Additional capital subsidy will be granted to processing plants set up in the cotton growing areas of Vidharbha, Marathwada and North Maharashtra. The details of the Capital subsidy rate and the duration for various textiles units are as follows.
Spinning, Ginning, Pressing
|
Type of Textile |
||||
|
Processing (yarn, fabric, printing), Technical textile Knitting, Hosiery and Garmenting* |
Composite Unit ** |
Conversion of Old Plain powerlooms to Shuttle less Rapier looms or looms based on latest technology (Modernization of powerlooms) |
New Powerlooms based on latest technology (Other than plain Powerloom), Weaving, Preparatory, Warping, Sizing, Conning, Twisting, Doubling, TFO and other textile units excluding those mentioned at Col 2 to 5 |
|
1 |
2 |
3 |
4 |
5 |
6 |
|
% of eligible amount |
% of eligible amount |
% of eligible amount |
% of eligible amount |
% of eligible amount |
| Subsidy to units in the General category | 25% |
25% |
|||
Subsidy to units in the SC/ST/Minority category |
45% |
40% |
30% |
30% |
30% |
Additional subsidy for production of Yarn, fabric and other products from non-conventional yarn |
10% |
10% |
10% |
- |
- |
The following additional subsidies will be applicable for textile projects in the Vidarbha, Marathwada and North |
|||||
|
Type of Textile |
||||
|
% of eligible amount |
% of eligible amount |
% of eligible amount |
% of eligible amount |
% of eligible amount |
Additional Capital subsidy |
20% |
10% |
10% |
10% |
10% |
Additional subsidy for units having Forward/Backward Integration |
- |
- |
5% |
||
Additional subsidy for units set up in a taluka not having any existing Spinning mills |
-In order to encourage the dispersal of industries to lesser developed areas of the State, the Government has been giving package of incentives to New Industrial Units / Expansion / Diversification Units set up in the developing regions of the State since 1964 under a Scheme popularly known as the "Package Scheme of Incentives. |
- |
5% |
- |
- |
5% Additional subsidy for new composite unit set up in a taluka not having any CoOperative or Private spinning mill |
- |
5% |
- |
- |
- |
The PSI - 2019, as may be amended by the Government from time to time, shall remain in operation from the 1st April 2019 up to 31st March, 2024 or till the new Package Scheme of Incentives comes into force.
Types of Benefits
1. Interest Subsidy
2. Capital Subsidy
3. SGST Refund
4. Electric Duty Exemption
5. Power Tariff Subsidy
6. Wavier of Stamp Duty
Disclaimer - We have made all the efforts to avoid errors or omission in the above content. In spite of this there may be chances for its occurrence. So it is suggested that to avoid any doubt reader should cross-check all the facts, law and contents with the Original Government Publications, Guidelines or Notifications issued time to time.