What you get
- Capital Investment Subsidy: 20% limited to a maximum reimbursement of ₹50,00,000/-. - Credit Linked Interest Subsidy: 60% per annum limited to maximum of ₹50,00,000/- per annum for 5 years OR, for the period of repayment of loan whichever is earlier. - Space Rent Subsidy: 50% up to a maximum of ₹5,00,000/- on actual rent paid by Furniture Industry for participation in industrial exhibitions in foreign countries. - Reimbursement on Course Fee: 50% of the course fee limited to ₹75,000/- per person for training in manufacture of modern furniture in reputed institutions will be reimbursed for a maximum of 5 persons per industry course. - Power Rate Incentive: ₹1/- per unit as reimbursement for a period of one year subject to a maximum of ₹50,00,000/- Lakhs from date of commencement of production. | Reimbursement on the cost of establishment of Showroom: | - Owned Showroom: 20% limited to maximum of ₹50,00,000/-. - Rented Showroom: 25% of actual rent for 3 years for a showroom with a minimum size of 2000 square feet.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
What is meant by Gross Fixed Capital Investment?
Gross Fixed Capital Investment refers to the total expenditure incurred on purchasing and installing the eligible automation and technology equipment.
Are there any limitations on the types of software installations that are eligible?
Yes, only industrial software installations such as CAD (Computer-Aided Design), CAM (Computer-Aided Manufacturing), CAE (Computer-Aided Engineering), HLM (High-Level Manufacturing), and CNC (Computer Numerical Control) are eligible for the subsidy.
What is the minimum size requirement for a showroom to be eligible for space rent reimbursement?
The showroom must have a minimum size of 2000 square feet to be eligible for reimbursement.
What costs are covered under space rent reimbursement?
The reimbursement covers all costs involved in building, interior furnishing, and other incidental costs, excluding the cost of furniture for display and land cost.
What costs are excluded from the reimbursement of space rent?
The cost of furniture for display and the cost of land are excluded from the reimbursement.
What type of investments are eligible for incentives under the Scheme?
Only Gross Fixed Capital Investment (GFCI) made in new buildings and new plant & machinery/equipment (excluding land) will be eligible for manufacturing incentives.
What kind of information must the enterprise furnish annually?
The enterprise must provide information regarding production, sales, turnover, and employment to the concerned District Industries Centre (DIC) before the end of September each year.
What are the environmental compliance requirements for the enterprise?
The enterprise must observe pollution control measures as prescribed by the Pollution Control Committee (PCC) or other competent authorities.
What is the minimum period for which the enterprise must remain in production?
The enterprise must remain in production for at least 5 years from the date of commercial production. If the enterprise fails to continue production for this period, the amount of Capital Investment Subsidy disbursed will be recovered as arrears of land revenue.
Can I apply for subsidies for both expansion and diversification activities?
No, during the policy period, only one activity, either expansion or diversification, will be eligible for subsidy.
What are the eligibility criteria for enterprises engaging in expansion or diversification?
Enterprises, whether existing or new, investing more than 50% of the Gross Fixed Capital Investment (GFCI) are eligible. Additionally, a minimum of 60% of this investment should be in plant and machinery.
What documents do I need to submit for participation in international exhibitions?
Enterprises must submit documentation proving their participation in exhibitions for marketing products in foreign countries.
When do I need to apply for subsidies after participating in an exhibition?
Enterprises must apply within three months from the completion of the exhibition.
What type of bills do I need to provide for subsidy processing?
Certified bills by a Chartered Accountant are required to be furnished by the enterprise.
What proof of rent payment is necessary for subsidy application?
Enterprises must submit proof of account transactions through their bank account indicating the payment of rent (Bank statement).
Are loans sanctioned by banks or financial institutions eligible for 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.
What is the eligibility criteria for Interest 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.
When should an Enterprise apply for the Interest Subsidy?
Enterprises must apply on the online portal within one year from the date of eligibility.
When does the Interest Subsidy become effective?
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.
What happens if the Enterprise defaults on payment?
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.
What is the scope of the interest subsidy?
The interest subsidy is applicable solely to the interest charged by financial institutions or banks on loans.
Are penal interest and other bank charges covered under the subsidy?
No, penal interest and other bank charges are not eligible for the interest subsidy.
Is there a minimum interest rate requirement for eligibility?
Yes, the eligible enterprise must bear a minimum of 2% interest on term loans provided by any bank or financial institution.
How can an enterprise demonstrate compliance with the minimum interest requirement?
The enterprise is required to submit details and an undertaking confirming their compliance with the minimum interest requirement.
How is the interest subsidy disbursed?
The interest subsidy is directly credited to the respective bank or financial institution that provided the loan.
What happens to the benefit of the incentive if a newly setup enterprise is sold or transferred to a new owner within the first five years of its establishment?
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.
What is the definition of Expansion/ Diversification?
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.
What measures are in place to prevent misuse of the subsidy scheme?
Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.
What is the operative period of the scheme?
The operative period of scheme is from 20.05.2022 till 5 years that is 19.05.2027.
If an enterprise is established in 2023 and becomes eligible for the scheme what would be the time period in which benefits are applicable?
The enterprise can avail benefit commencing from date of production till 5 years even if that period falls beyond operative period.
How can an eligible unit apply to get the benefits of the scheme?
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.
If a manufacturing unit is eligible under more than one scheme then can it select the scheme which allows most benefits?
Yes. The unit can select any one scheme to avail benefits if it comes under the eligibility of more than one scheme. However, units cannot apply for benefits for the similar subsidy in multiple schemes and can apply in schemes which are complementary in nature.