IncentivesAvailable
As per
Enterprises Promotion Policy-2015
Micro, Small and Medium Enterprises:
Category Block ‘A’
There is no incentive in Block ‘A’ for MSME.
Category Block ‘B’
Investment Subsidy on VAT:
50% for first 5 years and 25% for next three years from the date of commencement of commercial production with cap of 100% of fixed capital investment.
50% for first 5 years and 25% for next three years provided atleast 50% additonal investment in plant and machinery for expansion/diversification with cap of 100% of fixed capital investment of the expanded FCI.
Interest Subsidy:
@5% for Micro & Small Enterprises on term loan or maximum upto Rs.10.00 lakh per year for 3 years & shall not exceed amount of net VAT/SGST paid during the relevant year
@5% for Micro & Small Enterprises on term loan for expansion/diversification which are not covered under CLCSS of GOI or maximum upto Rs.10.00 lakh per year for 3 years & shall not exceed amount of net VAT/SGST paid during the relevant year
Assistant for Technology Acquisition:
50% of cost of adopting technology from recognised National Institutes
The financial support of 50% as subsidy or maximum of Rs.5 lakh for the purchase of testing equipments shall be provided to Micro and Small Enterprises
Testing Equipment Assistance:
In order to ensure ‘Zero Defect’ in the quality of products to make globally competitive, the financial support of 50% as subsidy or maximum of Rs.5 lakh for the purchase of testing equipments shall be provided to Micro and Small Enterprises.
Patent Cost:
Financial support by reimbursement of 50% of the actual expenses (including filing fees, consultancy fees, search fees and maintenance fees) with a maximum of Rs.25 lakh for domestic patent registration and international patent registration.
Assistance for Environment Compliance
50% financial support or maximum of Rs.25.00 lakh on capital cost for setting up of Effluent Treatment Plant and for installation of Air Pollution Control Devices for Micro and Small Enterprises.(The units adopting zero effluent will be considered for higher subsidy on case to case basis).
Energy Audit:
75% reimbursement or maximum of Rs. 2 lakh for conducting energy audit. Also 50% subsidy on cost of capital equipments required for undertaking measures to conserve energy, subject to maximum of Rs. 20 lakh.
Water Audit:
75% reimbursement of cost of water audit subject to maximum of Rs.1 lakh. Also subsidy up to 50% or maximum of Rs.20 lakh on the cost of capital equipments required for Water Conservation/Harvesting System
Safety Audit:
75% reimbursement of expenses incurred on safety audit subject to maximum of Rs.1 lakh for conducting safety audit. Also 50% subsidy on cost of capital equipments required for undertaking safety measures, subject to maximum of Rs.5 lakh.
Special provisions for Start-Ups/First Generation Entrepreneurs:
In order to encourage Start-ups for setting up of Micro & Small enterprise, 100% investment subsidy of VAT/SGST net paid upto turnover of Rs.3.00 crore for three years whichever is earlier, in ‘B’, ‘C’,’D’, category blocks. Such enterprise shall be exempted from inspection of the concerned departments. Criteria for start-ups shall be defined in the scheme. (Professionals such as engineers, MBA, CA with 5 years experience without having any business background.)
Entrepreneurship Development Program
The financial support of Rs.2 lakh shall be provided to Government Universities/NIT/IIT/ Technical Institutes for conducting entrepreneurship development program
E-Commerce Portal For MSME’s
A Budget provision of Rs.10 crore for brand building and on-line trading of products manufactured by MSME,Handloom/Handicrafts/Khadi Products.
MSME State Awards
Outstanding Entrepreneurship State Awards shall be provided to Micro and Small Enterprises of Rs.3 lakh each separately for growth in production and profit, for innovation & development of new products, quallity products and lean manufacturing techniques in the field of Agro and Food processing, Automobiles and auto parts, Textiles, Engineering, Pharmaceuticals, IT & Electronics etc. The unit once selected for award shall not be considered again during next 5 years.
Credit Ratings
Reimbursement of the expenses incurred towards the credit rating to the extent of 75% or maxiumum of Rs. 2 lakh for Micro and Small enterprises carried out by SIDBI/Govt. accredited credit rating agency.
Quality Certification
75% reimbursement or maximum of Rs.1 lakh for obtaining ISO certifications.
Stamp Duty Refund
50% refund of stamp duty on purchase/leasing of land for establishment of enterprise including industrial Estates developed by HSIIDC/private developer in ‘B’ category blocks within 5 years from the date of filing of EM.
CLU/EDC charges
50% exemption of Conversion charges and EDC in ‘B’ category blocks
Electricity Duty Exemptions
100% exemption for 7 years for all new enterprise in ‘B’ category Blocks from the date of release of electricity connection.
Credit Linked Capital Subsidy for Technology Up-gradation
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, max. of Rs.15 lakh. The State would also provide interest subsidy @5% upto a maximum of Rs.5 lakh per year for a period of 3 years to such units eligible under this scheme.
Design Clinic Scheme
GOI provides Rs. 3 lakh with contribution of Rs.1 lakh by industries for conducting Design Awareness Program (DAP) in the various clusters by National Institute of Design , Ahmadabad. The state would refund the contribution of industries of Rs.1 lakh per program.
GOI provides funding support @60% of the designing cost upto a maximum of Rs.15 lakh under the Design Clinic Scheme. The State Government would provide 20% of the designing cost out of the 40% contribution to be made by the Industry.
Market Development Assistance
The complete reimbursement of participation charges for space of maximum size up to 9 sq.m. and actual second class AC travelling charges and boarding charges at the rate of Rs.1000 per day shall be made to Micro and Small enterprises for participating in the exhibitions within the country, whereas the 75% space charges, shipment of exhibits, cost of product literature, display material or maximum up to Rs.5 lakh and air fare by economy class upto Rs.1 lakh will be reimbursed for participation in the international fairs/exhibitions for one fair in a year. This would be in addition to the yearly support being provided by GOI for one fair.
Collateral Free Credit Guarantee Scheme
One time contribution of Rs.100 crore to CGTMSE of GOI for Collateral Free Guarantee cover of Rs.1000 crore shall be made for advancing loans upto maximum of Rs.1 crore by the lending institutions to Micro & Small enterprises.
Category Block ‘C’
Investment subsidy on VAT
75% of VAT/SGST net paid for first 7 years and 35% for next three years from the date of commencement of commercial production with cap of 100% of fixed capital investment.
75% of VAT/SGST net paid for first 7 years and 35% for next three years provided atleast 50% additonal investment in plant and machinery for expansion/diversification with cap of 100% of fixed capital investment of the expanded FCI.
Interest Subsidy
@5% for Micro & Small Enterprises on term loan or maximum upto Rs.10.00 lakh per year for 3 years & shall not exceed amount of net VAT/SGST paid during the relevant year
@5% for Micro & Small Enterprises on term loan for expansion/diversification which are not covered under CLCSS of GOI or maximum upto Rs.10.00 lakh per year for 3 years & shall not exceed amount of net VAT/SGST paid during the relevant year
Assistant for Technology Acquisition
50% of cost of adopting technology from recognised National Institutes
The financial support of 50% as subsidy or maximum of Rs.5 lakh for the purchase of testing equipments shall be provided to Micro and Small Enterprises
Testing Equipment Assistance
In order to ensure ‘Zero Defect’ in the quality of products to make globally competitive, the financial support of 50% as subsidy or maximum of Rs.5 lakh for the purchase of testing equipments shall be provided to Micro and Small Enterprises.
Patent Cost
Financial support by reimbursement of 50% of the actual expenses (including filing fees, consultancy fees, search fees and maintenance fees) with a maximum of Rs.25 lakh for domestic patent registration and international patent registration.
Assistance for Environment Compliance
50% financial support or maximum of Rs.25.00 lakh on capital cost for setting up of Effluent Treatment Plant and for installation of Air Pollution Control Devices for Micro and Small Enterprises.(The units adopting zero effluent will be considered for higher subsidy on case to case basis).
Energy Audit
75% reimbursement or maximum of Rs. 2 lakh for conducting energy audit. Also 50% subsidy on cost of capital equipment required for undertaking measures to conserve energy, subject to maximum of Rs. 20 lakh.
Water Audit
75% reimbursement of cost of water audit subject to maximum of Rs.1 lakh. Also subsidy up to 50% or maximum of Rs.20 lakh on the cost of capital equipment` required for Water Conservation/Harvesting System
Safety Audit
75% reimbursement of expenses incurred on safety audit subject to maximum of Rs.1 lakh for conducting safety audit. Also 50% subsidy on cost of capital equipment required for undertaking safety measures, subject to maximum of Rs.5 lakh.
Special provisions for Start-Ups/First Generation Entrepreneurs
In order to encourage Start-ups for setting up of Micro & Small enterprise, 100% investment subsidy of VAT/SGST net paid upto turnover of Rs.3.00 crore for three years whichever is earlier, in ‘B’, ‘C’,’D’, category blocks. Such enterprise shall be exempted from inspection of the concerned departments. Criteria for start-ups shall be defined in the scheme. (Professionals such as engineers, MBA, CA with 5 year experience without having any business background.)
Entrepreneurship Development Program
The financial support of Rs.2 lakh shall be provided to Government Universities/NIT/IIT/ Technical Institutes for conducting entrepreneurship development program
E-Commerce Portal For MSME’s
A Budget provision of Rs.10 crore for brand building and on-line trading of products manufactured by MSME,Handloom/Handicrafts/Khadi Products.
MSME State Awards
Outstanding Entrepreneurship State Awards shall be provided to Micro and Small Enterprises of Rs.3 lakh each separately for growth in production and profit, for innovation & development of new products, quallity products and lean manufacturing techniques in the field of Agro and Food processing, Automobiles and auto parts, Textiles, Engineering, Pharmaceuticals, IT & Electronics etc. The unit once selected for award shall not be considered again during next 5 years.
Credit Ratings
Reimbursement of the expenses incurred towards the credit rating to the extent of 75% or maxiumum of Rs. 2 lakh for Micro and Small enterprises carried out by SIDBI/Govt. accredited credit rating agency.
Quality Certification
75% reimbursement or maximum of Rs.1 lakh for obtaining ISO certifications.
Stamp Duty Refund
75% refund of stamp duty on purchase/leasing of land for establishment of enterprise including industrial Estates developed by HSIIDC/private developer in ‘C’ category blocks within 5 years from the date of filing of EM.
CLU/EDC charges
50% exemption of Conversion charges and EDC in ‘C’ category blocks
Electricity Duty Exemptions
100% exemption for 7 years for all new enterprise in ‘C’ category Blocks from the date of release of electricity connection.
Credit Linked Capital Subsidy for Technology Up-gradation
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, max. of Rs.15 lakh. The State would also provide interest subsidy @5% upto a maximum of Rs.5 lakh per year for a period of 3 years to such units eligible under this scheme.
Design Clinic Scheme
GOI provides Rs. 3 lakh with contribution of Rs.1 lakh by industries for conducting Design Awareness Program(DAP) in the various clusters by National Institute of Design , Ahmadabad. The state would refund the contribution of industries of Rs.1 lakh per program.
GOI provides funding support @60% of the designing cost upto a maximum of Rs.15 lakh under the Design Clinic Scheme. The State Government would provide 20% of the designing cost out of the 40% contribution to be made by the Industry.
Market Development Assistance
The complete reimbursement of participation charges for space of maximum size up to 9 sq.m. and actual second class AC travelling charges and boarding charges at the rate of Rs.1000 per day shall be made to Micro and Small enterprises for participating in the exhibitions within the country, whereas the 75% space charges, shipment of exhibits, cost of product literature, display material or maximum up to Rs.5 lakh and air fare by economy class upto Rs.1 lakh will be reimbursed for participation in the international fairs/exhibitions for one fair in a year. This would be in addition to the yearly support being provided by GOI for one fair.
Collateral Free Credit Guarantee Scheme
One time contribution of Rs.100 crore to CGTMSE of GOI for Collateral Free Guarantee cover of Rs.1000 crore shall be made for advancing loans upto maximum of Rs.1 crore by the lending institutions to Micro & Small enterprises.
Power Tariff Subsidy
Rs.2 per unit only for Micro and Small Enterprise in ‘C’ Category blocks for 3 years from the date of release of electricity connection.
Category ‘D’ Block
Investment subsidy on VAT
75% of VAT/SGST net paid for first 7 years and 35% for next three years from the date of commencement of commercial production with cap of 100% of fixed capital investment.
75% of VAT/SGST net paid for first 7 years and 35% for next three years provided atleast 50% additonal investment in plant and machinery for expansion/diversification with cap of 100% of fixed capital investment of the expanded FCI.
Interest Subsidy
@5% for Micro & Small Enterprises on term loan or maximum upto Rs.10.00 lakh per year for 3 years & shall not exceed amount of net VAT/SGST paid during the relevant year
@5% for Micro & Small Enterprises on term loan for expansion/diversification which are not covered under CLCSS of GOI or maximum upto Rs.10.00 lakh per year for 3 years & shall not exceed amount of net VAT/SGST paid during the relevant year
Assistant for Technology Acquisition
50% of cost of adopting technology from recognised National Institutes max of Rs.25.00 lakh.
The financial support of 50% as subsidy or maximum of Rs.5 lakh for the purchase of testing equipment shall be provided to Micro and Small Enterprises
Testing Equipment Assistance
In order to ensure ‘Zero Defect’ in the quality of products to make globally competitive, the financial support of 50% as subsidy or maximum of Rs.5 lakh for the purchase of testing equipment shall be provided to Micro and Small Enterprises.
Patent Cost
Financial support by reimbursement of 50% of the actual expenses (including filing fees, consultancy fees, search fees and maintenance fees) with a maximum of Rs.25 lakh for domestic patent registration and international patent registration.
Assistance for Environment Compliance
50% financial support or maximum of Rs.25.00 lakh on capital cost for setting up of Effluent Treatment Plant and for installation of Air Pollution Control Devices for Micro and Small Enterprises.(The units adopting zero effluent will be considered for higher subsidy on case to case basis).
Energy Audit
75% reimbursement or maximum of Rs. 2 lakh for conducting energy audit. Also 50% subsidy on cost of capital equipment required for undertaking measures to conserve energy, subject to maximum of Rs. 20 lakh.
Water Audit
75% reimbursement of cost of water audit subject to maximum of Rs.1 lakh. Also subsidy up to 50% or maximum of Rs.20 lakh on the cost of capital equipment required for Water Conservation/Harvesting System
Safety Audit
75% reimbursement of expenses incurred on safety audit subject to maximum of Rs.1 lakh for conducting safety audit. Also 50% subsidy on cost of capital equipment required for undertaking safety measures, subject to maximum of Rs.5 lakh.
Special provisions for Start-Ups/First Generation Entrepreneurs
In order to encourage Start-ups for setting up of Micro & Small enterprise, 100% investment subsidy of VAT/SGST net paid upto turnover of Rs.3.00 crore for three years whichever is earlier, in ‘B’, ‘C’,’D’, category blocks. Such enterprise shall be exempted from inspection of the concerned departments. Criteria for start-ups shall be defined in the scheme. (Professionals such as engineers, MBA, CA with 5 year experience without having any business background.)
Entrepreneurship Development Program
he financial support of Rs.2 lakh shall be provided to Government Universities/NIT/IIT/ Technical Institutes for conducting entrepreneurship development program
E-Commerce Portal For MSME’s
A Budget provision of Rs.10 crore for brand building and on-line trading of products manufactured by MSME,Handloom/Handicrafts/Khadi Products.
MSME State Awards
Outstanding Entrepreneurship State Awards shall be provided to Micro and Small Enterprises of Rs.3 lakh each separately for growth in production and profit, for innovation & development of new products, quallity products and lean manufacturing techniques in the field of Agro and Food processing, Automobiles and auto parts, Textiles, Engineering, Pharmaceuticals, IT & Electronics etc. The unit once selected for award shall not be considered again during next 5 years.
Credit Ratings
Reimbursement of the expenses incurred towards the credit rating to the extent of 75% or maximum of Rs. 2 lakh for Micro and Small enterprises carried out by SIDBI/Govt. accredited credit rating agency.
Quality Certification
75% reimbursement or maximum of Rs.1 lakh for obtaining ISO certifications.
Stamp Duty Refund
100% refund of stamp duty on purchase/leasing of land for establishment of enterprise including industrial Estates developed by HSIIDC/private developer in ‘D’ category blocks within 5 years from the date of filing of EM.
CLU/EDC charges
50% exemption of Conversion charges and EDC in ‘D’ category blocks
Electricity Duty Exemptions
100% exemption for 7 years for all new enterprise in ‘D’ category Blocks from the date of release of electricity connection.
Credit Linked Capital Subsidy for Technology Up-gradation
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, max. of Rs.15 lakh. The State would also provide interest subsidy @5% upto a maximum of Rs.5 lakh per year for a period of 3 years to such units eligible under this scheme.
Design Clinic Scheme
GOI provides Rs. 3 lakh with contribution of Rs.1 lakh by industries for conducting Design Awareness Program(DAP) in the various clusters by National Institute of Design , Ahmadabad. The state would refund the contribution of industries of Rs.1 lakh per program.
GOI provides funding support @60% of the designing cost upto a maximum of Rs.15 lakh under the Design Clinic Scheme. The State Government would provide 20% of the designing cost out of the 40% contribution to be made by the Industry.
Market Development Assistance
The complete reimbursement of participation charges for space of maximum size up to 9 sq.m. and actual second class AC travelling charges and boarding charges at the rate of Rs.1000 per day shall be made to Micro and Small enterprises for participating in the exhibitions within the country, whereas the 75% space charges, shipment of exhibits, cost of product literature, display material or maximum up to Rs.5 lakh and air fare by economy class upto Rs.1 lakh will be reimbursed for participation in the international fairs/exhibitions for one fair in a year. This would be in addition to the yearly support being provided by GOI for one fair.
Collateral Free Credit Guarantee Scheme
One time contribution of Rs.100 crore to CGTMSE of GOI for Collateral Free Guarantee cover of Rs.1000 crore shall be made for advancing loans upto maximum of Rs.1 crore by the lending institutions to Micro & Small enterprises.
Power Tariff Subsidy
Rs.2 per unit only for Micro and Small Enterprise in ‘D’ Category blocks for 3 years from the date of release of electricity connection.
