Incentive Schemes for Micro, Small & Medium Enterprises (MSME) [Industrial Policy 2015]

Assistance of Capital Investment Subsidy

Capital Investment Subsidy for areas within Municipal Corporations For Investment up to Rs, 50 lakhs (in P&M)

  • Other Entrepreneurs
    • 15% of term loan amount disbursed with the maximum amount of Rs. 15 lakhs
  • SC/ST Entrepreneurs
    • 20% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs.

For Investment from Rs. 50 lakhs to Rs. 2 Crore (in P&M)

  • Other Entrepreneurs
    • 12% of term loan amount disbursed by Bank Financial Institute with the maximum amount of Rs. 15
  • SC/ST Entrepreneurs
    • 15% of term loan amount disbursed by Bank Financial Institute with the maximum amount of Rs. 25 lakhs.
For Investment from Rs.2 Crore to Rs.10 Crore (in P&M)
  • Other Entrepreneurs
    • 10% of loan amount disbursed by Bank Financial Institute with the maximum amount of Rs.15 lakhs.
  • SC/ST Entrepreneurs
    • 10% of loan amount disbursed by Bank Financial institute with the maximum amount of Rs.25 lakhs

Capital Investment Subsidy for areas outside Municipal Corporation

For Investment up to Rs, 50 lakhs (in P&M)

  • Other Entrepreneurs
    • 20% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs.
  • SC/ST Entrepreneurs
    • 25% of term loan amount disbursed with the maximum amount of Rs. 35 lakhs

For Investment from Rs, 50 lakhs to Rs. 2 Crore (in P&M)

  • Other Entrepreneurs
    • 17% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs.
  • SC ST Entrepreneurs
    • 20% of term loan amount disbursed with the maximum amount of Rs. 35 lakhs.

For Investment from Rs.2 Crore to Rs.10 Crore (in P&M)

  • Other Entrepreneurs
    • 15% of loan amount disbursed with the maximum amount of Rs.25 lakhs 
  • SC/ST Entrepreneurs
    • 15 % of loan amount disbursed with the maximum amount of Rs.35 lakhs.

Assistance for Interest Subsidy

Interest Subsidy for Manufacturing Sector - Municipal corporation Area

  • Other Entrepreneurs
    • 5% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs per annum for 5 years
  • SC/ST Entrepreneurs
    • 6% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs

Other areas outside the Municipal Corporations' area

  • Other Entrepreneurs
    • 7% of term loan amount disbursed with the maximum amount of Rs. 30 lakhs per annum for 5 years
  • SC/ST Entrepreneurs
    • 8% of term loan amount disbursed with the maximum amount of Rs. 30 lakhs.
    • 1% additional subsidy to physically challenged / women entrepreneur
    • 1% additional subsidy to young entrepreneur (below 35 yrs)
    • Maximum benefit of 7% in municipal corporation areas and 9% in areas other than municipal corporation

Interest Subsidy for Service Sector

Only new MSME of Service sector

  • Other Entrepreneurs
    • 5% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs.
  • SC/ST Entrepreneurs
    • 6% of term loan amount disbursed with the maximum amount of Rs. 25 lakhs.

Assistance for Venture Capital

  • Entrepreneur setting up MSME with innovative technology will be assisted to raise promoter contribution in the form of equity or loan
  • 20% of project cost provided as promoter funding with max limit of Rs.50 lakh

Assistance for Quality Certification

For Investment up to Rs.50 lakhs (in P&M)

  • Other Entrepreneurs
    • 65% of the capital cost for installing ERP system of approved ERP service provider by MSME Commissionerate, the maximum amount of Rs.1,00,000/-
  • SC/ST Entrepreneurs
    • 75% of the capital cost for installing ERP system of approved ERP service provider by MSME Commisionerate, the maximum amount of Rs.1,00,000/-

For Investment from Rs.50 lakhs to Rs.2 Crore (in P&M)

  • Other Entrepreneurs
    • 60% of the capital cost for installing ERP system of approved ERP service provider by MSME Commissionerate, the maximum amount of Rs.1,00,000/-
  • SC/ST Entrepreneurs
    • 70% of the capital cost for installing ERP system of approved ERP service provider by MSME Commissionerate, the maximum amount of Rs.1,00,000/-

For Investment from Rs.2 Crore to Rs.10 Crore (in P&M)

  • Other Entrepreneurs
    • 50% of the capital cost for installing ERP system of approved ERP service provider by MSME Commissionerate, the maximum amount of Rs.1,00,000/-
  • SC/ST Entrepreneurs
    • 50% of the capital cost for installing ERP system of approved ERP service provider by MSME Commissionerate, the maximum amount of Rs.1,00,000/

Assistance in Information & Communication Technology

For Investment up to Rs.50 lakhs (in P&M)

  • Other Entrepreneurs
    • 65% of the capital expenditure related to ICT facilities, maximum up to Rs. 5,00,000
  • SC/ST Entrepreneurs
    • 75% of the capital expenditure related to ICT facilities, maximum up to Rs. 5,00,000

For Investment from Rs.50 lakhs to Rs.2 Crore (in P&M)

  • Other Entrepreneurs
    • 60% of the capital expenditure related to ICT facilities, maximum up to Rs. 5,00,000
  • SC/ST Entrepreneurs
    • 70% of the capital expenditure related to ICT facilities, maximum up to Rs. 5,00,000

For Investment from Rs.2 Crore to Rs.10 Crore (in P&M)

  • Other Entrepreneurs
    • 50% of the capital expenditure related to ICT facilities, maximum up to Rs. 5,00,000
  • SC/ST Entrepreneurs
    • 50% of the capital expenditure related to ICT facilities, maximum up to Rs. 5,00,000

Other Assistance for Certification

  • 50% of all charges including consultancy fee up to a maximum amount of Rs 50,000 paid for obtaining ISO certification
  • 50% of all charges upto a maximum amount of Rs, 5 lakhs paid for obtaining of each certification for ISIWHO-GMP/Hallmark certifications & other national International certification approved by Quality Council of India
  • 50% offee payable to Recognized International Certification Authority and 50% cost of testing equipment and machinery required for that certification, totalling upto maximum amount of Rs, 10 Jakhs

Assistance for Technology Acquisition

For Investment up to Rs.50 lakhs (in P&M)

  • Other Entrepreneurs
    • 65% of the cost payable to the institution, maximum of Rs, 50 lakh, including royalty payment for first two years
  • SC/ST Entrepreneurs
    • 75% of the cost payable to the institution, maximum of Rs. 50 lakh, including royalty payment for first two years.

For Investment from Rs.50 lakhs to Rs.2 Crore (in P&M)

  • Other Entrepreneurs
    • 60% of the cost payable to the institution, maximum of Rs. 50 lakh, including royalty payment for first two years
  • SC/ST Entrepreneurs
    • 70% of the cost payable to the institution, maximum of Rs. 50 lakh, including royalty payment for first two years.

For Investment from Rs.2 Crore to Rs.10 Crore (in P&M)

  • Other Entrepreneurs
    • 50% of the cost payable to the institution, maximum of Rs, 50 lakh, including royalty payment for first two years
  • SC/ST Entrepreneurs
    • 50% of the cost payable to the institution, maximum of Rs. 50 lakh, including royalty payment for first two years.

Assistance for Patent Registration

  • Up to 75% of total cost expenditure incurred subject to maximum Rs. 25 lakhs on obtaining the patent. Patent registration, patent attorney patent service center.petentem ent, etc. are covered

Assistance for Saving in Consumption of Energy & Water

  • Up to 75% cost of energy water audit recognized institution consultant subject to maximum Rs. 50,000 for each audit
  • Up to 25% of cost of equipment recommended by auditing authority subject to maximum Rs 20 lakhs

Assistance to SMEs for raising Capital through SME exchange

For investment up to Rs. 2 Crore in plant and Machineries

  • Other Entrepreneurs
    • 25% expenditure incurred on raising of equity capital through SME exchange maximum up to Rs 5 lakhs
  • SC / ST Entrepreneurs
    • 30% expenditure incurred on raising of equity capital through SME exchange maximum up to Rs 5 lakhs

For investment from Rs. 2 Crore up to Rs. 10 Crore in plant and Machineries

  • Other Entrepreneurs
    • 20% expenditure incurred on raising of equity capital through SME exchange maximum up to Rs 5 lakhs
  • SC / ST Entrepreneurs
    • 20% expenditure incurred on raising of equity capital through SME exchange maximum up to Rs 5 lakhs

Assistance in Service line and Power Connection Charges

For Investment up to Rs50 lakhs (in P&M)

  • Other Entrepreneurs (Outside GIDC Area)
    • 35% of charges paid to distribution licences for LT/HT service line, maximum limit up to Rs. 5 lakhs.
  • SC/ST Entrepreneurs (Outside GIDC Areal)
    • 60% of charges paid to distribution licences for LT/HT service line, maximum limit up to Rs. 5 lakhs

For Investment from Rs, 50 lakhs to Rs.2 Crore (in P&M)

  • Other Entrepreneurs (Outside GIDC Area)
    • 30% of charges paid to distribution licences for LT/HT service line, maximum limit up to Rs. 5 lakhs.
  • SC/ST Entrepreneurs (Outside GIDC Areal)
    • 50% of charges paid to distribution licences for LT/HT service Ine, maximum limit up to Rs. 5 lakhs

For Investment from Rs.2 Crore to Rs. 10 Crore (in P&M)

  • Other Entrepreneurs (Outside GIOC Area)
    • 25% of charges paid to distribution licences for LT/HT service line, maximum limit up to Rs. 5 lakhs. 
  • SC/ST Entrepreneurs (Outside GIDC Areal
    • 50% of charges paid to distribution licences for LT/HT service line, maximum limit up to Rs. 5 lakhs

Assistance to basic Industrial Infrastructure (Applicable only for SC/ST)

  • 75% of cost of capital investment for infrastructure or expenditure incurred for Water gas facilities, maximum Imit up to Rs. 15 lakh including all infrastructure falities

Assistance for special entrepreneurship training, mentorship support and sustenance allowance

  • The assistance for special entrepreneurship training 100% of course fees maximum up to Rs. 10,000-per month per person will be payable to nodalinstitution. The duration of the program should be from 6 months to 1 year
  • The assistance for mentorship support @100% of mentorship cost limited to maximum up to Rs.5.000 per month per person will be paid to the mentor, maximum up to 3 month
  • The entrepreneur will be provided Rs. 5,000 per month as sustenance awance for the duration of the entrepreneurship training

Assistance to Micro & Small Enterprises (MSE) for plot/shed development

Financial Assistance to MSE for plot developed by GIDC&nbspbh5>

  • Other Entrepreneurs
    • Upto 50% of allotment price fixed by SLEC will be given directly to GIDC
  • SC/ST Entrepreneurs
    • Upto 70% of allotment price of GIDC
    • On payment of 30% of allotment price, GIDC will hand over the possession of the plot and submit the claim of subsidy up to 70% of the allotment price to the commissioner MSME

Financial Assistance to GIDC for developing multi-storeyed shed in estates

  • Other Entrepreneurs
    • Upto 50% for the development of project will be given directly to GIDC
  • SC/ST Entrepreneurs
    • Upto 70% for the development of project will be given directly to GIDC, On payment of 30% of allotment price GIDC will hand over the possession of the Shed and submit the claim of subsidy up to 70% of the allotment price to the commissioner MSME.

Financial Assistance to MSE for shed developed by Private Developer

  • Other Entrepreneurs
    • Upto 50% of the total cost of land, building, and other infrastructure facilities will be given to private developer
  • SC/ST Entrepreneurs
    • The Private Developer will be eligible for additional assistance up to 15% of the total cost of land, building and other infrastructure facilities

Assistance in Rent for rental premises

For areas under Municipal Corporation & UDA

  • Other Entrepreneurs
    • 50% of rent paid or Rs, 50,000/- per annum, whichever is less
  • SC/ST Entrepreneurs
    • 65% of rent paid with maximum limit of Rs, 1 lakh per annum for investment up to Rs.50 lakhs in P& M)
    • 60% of rent paid with limit of Rs. 1 lakh per annum for investment from Rs, 50 lakhs to Rs.2 Crore
    • 55% of rent paid with maximum limit of Rs. 1 lakh per annum for Investment from Rs.2 Crore to Rs. 10 Crore

For areas outside the Municipal Corporations' area

  • Other Entrepreneurs
    • 50% of rent paid or Rs.25,000/- per annum, whichever is less
  • SC/ST Entrepreneurs
    • 65% of rent paid with maximum limit of Rs. 1 lakh per annum for investment up to Rs.50 lakhs in P& M)
    • 60% of rent paid with limit of Rs, 1 lakh per annum for investment from Rs, 50 lakhs to Rs.2 Crore
    • 55% of rent paid with maximum limit of Rs, 1 lakh per annum for Investment from Rs.2 Crore to Rs. 10 Crore

Market Development Assistance - Assistance for participation in Exhibition / Trade Fair

Financial Assistance

  • Other Entrepreneurs
    • @50% for rent of stall or Space, the cost of product literature and display material subject to a maximum of Rs, 4 lakhs
  • SC/ST Entrepreneurs
    • @70% for rent of stall or Space, the cost of product literature and display material subject to a maximum of Rs. 4 lakhs
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