Eligibility:
- New units, as well as Expanding units of both the manufacturing and service sectors will be eligible to avail this incentive.
- Interest on loan up to the principal amount of Rs. 250crore for investment in eligible plant and machinery (manufacturing sector) or Building and all other durable physical assets (for service sector) shall be eligible for Capital Interest subvention. If the total principal amount of the loan (loan being defined as a whole and not as per draw-down amount in each tranche) is more than Rs.250 crore, then interest on the loan amount exceeding Rs. 250 crore would not be eligible for Capital Interest Subvention.
- The Capital Interest Subvention would be eligible on the amount disbursed and not on the principal amount sanctioned for the term loan.
- All eligible units located in Zone A category blocks in the States of North-Eastern Region can avail of Capital Interest Subvention at the annual rate of interest of 3% for a maximum of 7 consecutive years from any date after the date of application for registration under this scheme. However, disbursement of the eligible amount under this incentive shall begin only after the commencement of commercial production.
- This incentive is applicable on the loans availed from Scheduled Commercial Banks or Financial Institutions registered by Reserve Bank of India.
