Section 5 in Mukhya Mantri Swavlamban Yojana, 2019
5. Extent of admissible subsidy.
- All new industrial units would be eligible for :-(a)Investment Subsidy @ 25% of investment as follows:-A. For Manufacturing SectorInvestment in Plant & Machinery & technical civil worksB. For Service SectorThe plant & machinery includes cost of construction of building and all other durable physical assets basic for a running of that particular service industry but exclude cost of land and consumable, disposables or any other item charged to revenue; upto a maximum investment ceiling of Rs. 40 lakh in plant & machinery (or equipments) with total project cost not exceeding Rs. 60 lakh (including Working Capital). In case such units are set up by Bonafide Himachali women entrepreneur(s) the maximum amount of subsidy admissible would be @ 30%. In case of proprietary firms/ Corporate/ Legal entities like Companies/LLP's/ Partnership Firms wherein 100% equity is held by Eligible Bonafide Himachali and 100% shares are held by Women for availing Capital Investment Subsidy @ 30%.(b)Interest Subsidy@ 5% for three years on loan upto Rs. 40 lakh sanctioned by a 'Financial Institution' as defined under these Rules, would be admissible to such eligible industrial units. The interest subsidy will not be admissible on defaulted/ rescheduled investments and the period of default shall be counted for determining the period of eligibility. The subsidy will be given directly to the banks.The following conditions are to be fulfilled for disbursing incentives under Rule 5(a) & (b) :-(i)The Bank will sanction 90% of the project cost and disburse full amount suitable for setting up of the project.(ii)Bank will finance Capital Investment Subsidy in the form of Term Loan upto Rs. 40.00 Lakhs. Project can also be financed by the Bank in the form of Composite Loan consisting of Capital Expenditure and Working Capital.(iii)Repayment schedule may range between 5 to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial institution.(iv)Once the Subsidy is received in the Bank in favour of the eligible applicant within 24 hours it should be kept in the Term Deposit Receipt (TDR) of three years at branch level in the name of the beneficiary.(v)No interest will be paid on the TDR and no interest will be charged on loan disbursed to the corresponding amount of TDR.(vi)For being eligible for grant/adjustment of Capital Subsidy, the unit has to remain in commercial production for at least 03 years. Capital Subsidy will be adjusted/released only after physical verification of the unit by the concerned Joint Director of Industries/Deputy Director of Industries/General Manager, DIC or his representative after completion of 03 years.(vii)Bank has to obtain an undertaking from the beneficiary before the release of Bank Finance that, in the event of objection (recorded and communicated in writing) by the Department of Industries, the beneficiary will refund the subsidy kept in the TDR or released to him.(viii)Financial institutions will raise the demand for funds towards permissible interest subsidy after expiry of one year from the date of commercial production of the unit; and then subsequently after every completed one year for a total period of three years.(c)Government land with Department of Industries which includes plots, shops and sheds in Industrial areas/Industrial Estates established in C category areas only would be given @ 25% of the prevailing premium at the time of allotment. The Government land if available elsewhere would be made available on lease @1% of rate prevalent and applicable at the time of leasing out after such notification by the Revenue Department.(d)If an entrepreneur intends to buy private land under this Scheme then the stamp duty will be charged @3% of applicable rate.(e)The State Government will reimburse actual fee/expenses incurred on payment of guarantee fee of Credit Guarantee Fund Trust for Micro & Small enterprises (CGTMSE) of Government of India to provide collateral free loans under the Scheme. The reimbursement would be made on yearly basis by the concerned JDI/ DDI/GM, DIC on the basis of the demand raised by the bank to be credited in the loan account of respective borrowers.The incentive at Clause (c) and (d) would be available from the date of notification by the Revenue Department.
