Capital Investment Subsidy (CIS) and financial support of Investment
Capital Investment Subsidy (CIS) @ 30%, subject to a maximum limit of Rs 30 lakhs shall be available on capital investment. In priority areas of electromnics including computernics and software, foor processing including agro-based industries (excluding conventional grinding/extraction units), floriculture, handicrafts, leather processing and leather goods, sports goods, forest-based industry (excluding saw-mills and joineries), processing of aromatic plants and herbs, pharmaceuticals base on herbs, bulk-drugs, silk reeling, weaving, processing, printing and made-ups, cutting and polishing of stones, gems and jewellery, precision engineering and other areas identified as thrust areas, the upper limit of the total subsidy has been inceased to Rs 45 lakhs. For prestigious units (those with capital investment of minimum Rs 25 crores) the upper limit of CIS shall be Rs 75 lakh in thrust areas and Rs 60 lakh otherwise. Over and above this amount, 100% subsidy on project feasibility report and 100% subsidy on testing equipment (with some monitory ceilings) for maintaining quality standards shall aso be available. Purchase of captive DG sets upto 1 MW also qualified for 100% capital subsidy.
The J&K State Industrial Corporation (SIDCO) shall join the capital investment of the promoters on a selective basis on Joint sector/Assisted Sector approach. The financial assistance is also available upto under the National Equity Fund Scheme of the small Industries Development Bank of India (SIDBI) for units in the SSI sector.