Credit Linked Capital Subsidy Scheme (CLCSS)
Micro and Small Industries get 15% (max 15 Lakhs) of their investment in eligible machineries. This scheme is presently on hold and is expected to be announced soon.
Technology and Quality Upgradation (TEQUP)
Micro & Small Industries get 25% subsidy (max 10 Lakhs) for their investment in energy saving machines. This scheme is presently on hold.
Technology Upgradation Fund Scheme (TUFS)
This scheme is administered by the Ministry of Textile, Govt of India. Under this scheme Textile Industries in the value chain from farm to fabric get different capital subsidies depending upon their sector. Technical Textile Industries also get benefit under this scheme.
| Sr No | Segment | Rate of capital investment subsidy | Ceiling as per individual entity |
|---|---|---|---|
| 1. | Garmenting, Technical Textiles | 15% of Eligible Machines | Rs. 30 Crore* |
| 2. | Weaving for brand new Shuttle-less Looms (Including weaving preparatory and Knitting), Processing | 10% of Eligible Machines | Rs. 20 Crore* |
| 3.(a) | Composite Unit/ Multiple Segments – If the eligible Capital Investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost. | 15% of Eligible Machines | Rs. 30 Crore* |
| 3.(b) | Composite Unit/ Multiple Segments – If the eligible Capital Investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost. | 10% of Eligible Machines | Rs. 20 Crore* |
| 3.(c) | Spinning, Ginning & Pressing | 0% (Zero) |
This scheme expired on 31.03.22. A new policy announcement is expected with even better incentives.
Various NABARD Operated Schemes
NABARD administers various schemes from time to time for the benefit of agricultural and rural development and warehouses.
EPCG, Advance License
These schemes are run by DGFT wherein industries are able to import capital goods and raw material respectively under the above two schemes without any payment of import duty or IGST subject to some export commitment that they have to fulfil in the future. Export enterprises who fall under the inverted structure can also avail refund of GST under these schemes for the GST charged in their invoices during the purchase of capital goods.
Apeda Schemes
Agri based industries are eligible for capital subsidy for certain defined investments in certain machineries and equipment’s subject to a declaration that they would engage in export of the final produce of their industry
MOOWR scheme
Under this scheme industries are allowed to import capital goods without payment of import duty and IGST. These taxes are payable when the capital good is finally sold by the enterprise. Under the same license, the enterprises are also allowed to import raw materials without payment of import duty or IGST, again payable when the final product produced by these enterprises is sold in the domestic market of INDIA. These taxes are not payable at all if the final product produced by these enterprises are finally exported.
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