Package of Incentives
- Document type
- Policy
- Dated
- Category
- Policy
Interest Subsidy
Five per cent subsidy shall be payable on the working capital facilities available from the commercial banks to all existing units upto 31.03.2003 and to all new units for a period of five years form the date of production or from the subsequent financial year as may be decided by the unit subject to the following conditions:-
The item for manufacturing is not on the negative list.
The subsidy shall be passed on to the commercial bank at the end of the financial year.
After the first year of entitlement, the subsidy shall be released only if the unit has increased its production and the same condition shall be applicable to the remaining years of entitlement, in reference to each preceding year.
The aforementioned condition shall not be applicable for subsequent years if the unit attains 95% production capacity utilisation before completing its period of entitlement for 5 years and the same does not go down during the subsequent years of entitlement.