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Credit Linked Interest Subsidy Scheme

Government of Haryana

Industries and Commerce Department

NOTIFICATION

 

The 29th January, 2016

No. 49/43/2015-4IB1 in pursuance to the provision under Chapter 12 of Enterprises Promotion Policy-2015 notified vide No. 49/43/2015-4IB1 dated 14th August, 2015, the Governor of Haryana is pleased to notify the “Credit Linked Interest Subsidy Scheme” for technology up-gradation with the following provisions:

 

1.   Objective:-

The survival and growth of the Micro and Small Sector is critically dependent on their modernisation and technological up gradation. Up gradation of both the process of manufacture and corresponding plant and machinery is necessary for the small enterprises to reduce the cost of production and remain price competitive at a time when cheaper products are easily available in the global market. Due to inadequate finance and lack of awareness of both the quality standards and access to modern technologies, a large percentage of Micro and Small sector continue with outdated technology and plant & machinery. Govt. of India has introduced Credit Linked Capital Subsidy Scheme for technology up-gradation of the MSE sector. The State Government has dovetailed this scheme with a provision of Interest subsidy to such assisted units.

 

2.   Quantum of Assistance

Under the Credit Linked Capital Subsidy Scheme (CLCSS) for technology up-gradation of Ministry of MSME, the Govt. of India provides 15% upfront capital subsidy for facilitating technology up-gradation in specified sectors/products of the industry with a max. of Rs. 15 lakh. The State Government would also provide interest subsidy @5% upto a maximum of 5 lakh per year for a period of 3 years to an eligible unit.

 

3.    Commencement and Applicability

The Scheme shall commence with effect from 15.8.2015 for providing Credit Linked Interest Subsidy and shall remain in operation for a period of 5 years. The assistance shall be available on term loan (Plant and Machinery) sanctioned after 14/08/2015 and before 14/08/2020.

 

4.    Eligibility Criteria

All the existing Micro and Small Units located anywhere in the State, which have filed EM Part-II with respective District Industries Centre shall be eligible under the Scheme. Only the enterprises, which are covered under the Credit linked Capital subsidy scheme of GoI for technology up-gradation shall be eligible for Interest Subsidy under this scheme. The eligible units must also comply with the following conditions:

  1. The unit must upgrade their existing plant and machinery with State of Art Technology with or without expansion/ diversification as per guideline under CLCSS Scheme of GoI.
  2. Industry graduating from small scale to medium scale on account of sanction of additional loan under CLCSS shall be eligible for assistance.
  3. The item of Manufacture of unit should not have been placed in the restrictive list as notified by the State government from time to time.
  4. The unit should have obtained NOC/CLU from competent Authority if applicable.
  5. The unit should be in commercial production.
  6. The unit should be in regular production at the time of disbursement and the subsidy shall not be released to a closed unit.
  7. The unit should be regular in the repayment of term loan instalments.

 

5.   Procedure

  1. Application on prescribed Form (Annexure-I) for the grant of Credit Linked Interest subsidy along with listed documents would be submitted to the Director of Industries & Commerce, on the web portal of the department.
  2. The application would be processed and examined. The deficiencies, if any, would be communicated to the applicant in writing within a period of 10 working days and the applicant would be given a time period of eight weeks to rectify the deficiencies so pointed out. The enterprise shall not be required to submit any additional document other than specified under Annexure-I without approval of competent authority.
  3. In case the deficiencies are not removed within prescribed period, the claim may be filed by the Competent Authority, under intimation to the applicant through e-mail.
  4. A claim application so filed may be reopened with the orders of Principal Secretary Industries & Commerce provided request for the same is received within a period of 30 days from the date of rejection of the claim by the designated Competent Authority.

 

6.   Competent Authority for Sanction:

Director, Industries & Commerce shall be competent authority for sanction of Credit Linked Interest Subsidy.

 

7.   Time Limit

The enterprise shall forfeit its entitlement for the interest subsidy, if it does not submit its claim, complete in all respects within three months of the closing of the financial year for which CLIS is being claimed.

 

8.   Interpretation/ Relaxation

Principal Secretary Industries & Commerce, Haryana shall be competent to make interpretation/ relaxation of provisions of this scheme.

 

9.   Appeal

Appeal against orders passed by the Competent Authority shall lie with the Principal Secretary, Industries & Commerce, Haryana within a period of 30 days from the date of communication of orders appealed against and orders passed by the Principal Secretary shall be final.

 

10.        Penal Action

In case, it is found at any stage that the applicant has claimed the assistance on the basis of wrong facts, the applicant shall besides refunding assistance with compound rate of interest @ 12% per annum and facing legal action, will be debarred from grant of any incentives/assistance from the State Government.

 

 

Devender Singh 

Principal Secretary to Government of Haryana,

Industries and Commerce Department

 

 

 

Annexure – I

 

Application format for claiming Credit Linked Interest Subsidy Scheme for technology up-gradation

 

Sr. No.

Particulars

Details

1

Name  of  the  applicant  (Authorized person of the unit)

 

2

Name  &  Factory  address  of  the  unit with telephone no. and e-mail

 

3

Registered Office address

 

4

Name  of  the  block  in  which  the enterprise  located  and  category  of blocks i.e. B/C/D

 

5

Category of the unit (Micro/ Small).

 

6

EM Part-II/Udyog Aadhar No. & date

 

7

Date of commencement of commercial production (As per first sale bill)

 

8

Item of manufacture/processing

 

9

Category under which interest subsidy has been claimed:  Micro/ Small

 

10

Details   and   amount   of   subsidy sanctioned and disbursed by Govt. of India under CLCSS.

 

11

Name of the bank/ financial institution

 

12

Quantum of term loan sanctioned for the technology up-gradation.

 

13

Date    of    disbursement    of    first instalment of loan & amount

 

14

Total cost of scheme as approved by bank/ financial institution

 

15

Total  source  of  funding  /  means  of finance (as approved by Bank/ FI):

  1. Promoters’ Contribution
  2. Term Loan
  3. Others resources

Total

 

16.

Quantum of CL Interest Subsidy @ 5% admissible   for   the   financial   year.................. (Attach bank certificate as per prescribed performa)

 

17

Details of CL interest subsidy claimed earlier year-wise

 

 

18.     Self attested copies of documents to be attached with the application:

  1. Acknowledgement of Entrepreneur Memorandum (EM) part-II.
  2. Certificate of Incorporation/ Partnership deed.
  3. Board resolution/ Power of attorney
  4. Change of Land Use (CLU)/ NOC from competent authority, if applicable.
  5. Certificate for Financial Institution on Letter Head of the Bank(Annexure-II)
  6. CA Certificate regarding investment in plant & machinery for new unit/ expansion/ diversification (Annexure-III).
  7. Audited balance sheet of the unit of last year (if Applicable).
  8. Copy of first sale bill.
  9. Copy of sanction/ disbursal letter in respect of capital subsidy under CLCSS Scheme of GoI.

 

 

 

Signature of the applicant

(with seal)

 

Declaration:

 

I,___________________ do hereby solemnly state that I am proprietor/ partner/director/_________________of M/s____________________________ located____________ which is engaged in the manufacture of________________ and I have been authorized to file the Credit linked Interest subsidy claim with the Department of Industries and Commerce, Haryana.

 

2. I do hereby affirm that the particulars given in the application are correct. In case, any of the statement/ information furnished in the application/ documents later found to be wrong or incorrect or misleading, I do hereby undertake to refund the entire amount of assistance of Rs._______________ (Rupee_______________________________________) granted to me at the compound rate of interest @12% per annum, besides facing legal action in case facts contained in this application are proved to be wrong at the time of verification/ checking or otherwise at any stage.

 

 

Dated:                                                                 

Signature of the applicant

(with seal)

 

 

 

 

                                                                                                         Annexure-II

Certificate from financial institution

(on letterhead of the bank)

This is to certify that M/s ............................................... has been sanctioned term loan of Rs. ............................. for the project located at .................... @ ........... %interest. The unit has been disbursed. ..............term loan of Rs upto ............. The  first  instalment  of  the  term  loan  of  Rs.  ........................  was disbursed on dated .................. The unit had made repayment for the last financial year dated 01/04/20.... to dated 31/03/20....   as under:-

 

Against Term loan           Rs. .....................................

As interest                    Rs. .....................................

Total                            Rs.......................................

 

 

On the disbursement amount of term loan mentioned above, the interest amount @5% for the above period comes to Rs. ....................... .

 

This is to certify that:

i)    The unit is presently regular in repayment of the term loan instalments.

ii)   No penal interest has been charged.

iii) The unit has financed and claimed subsidy under Credit Linked Capital Subsidy Scheme of Government of India.

 

 

 

Place:

Date:                                                                                

Signature

Branch Manager

Name of Bank 

Seal of the Bank

 

 

 

Annexure-III

 

Certificate from Chartered Accountant regarding investment in plant & machinery (on a CA letter head)

 

To whom it may concern 

The records and books of account of M/s ......................................         with their   regd.   office   at....................... and   factory located at ......................................................  in  respect  of investment          in existing plant & machinery (original purchase value) of the unit has been verified. It is certified that the investment in plant & machinery as on date................ stands as Rs....................

 

 

 

Name & signature of the Chartered Accountant

with stamps & CA membership number

 

Dated: