SIDBI Subsidy Scheme
As Small Scale Industries (SSI) units fall short of the fund in the aspect of rising competition, they continue with outdated technology, plant, and machinery. To decrease the price of production and stay price competitive at a time when inexpensive products are effortlessly available in the global market, liberalization of the economy is challenging modernization and technological up gradation of both the development of manufacture and equivalent plant. This is when Credit Lending Subsidiary Scheme (CLCSS) comes into the picture to offer them with the essential fund in order that they could cope up steps with the shifting technology.
Here, Small Industries Development Bank of India (SIDBI)along with other Financial Institutions are acting as Nodal Agency for implementation and release of the subsidy. Intec Capital Ltd has established a Credit Delivery Arrangement (CDA) with SIDBI where this channel partnership with SIDBI provides subsidy to SME customers.
The Credit Lending Subsidy Scheme (CLCSS) have been approved under the Scheme.
- The ceiling on loans under the SIDBI Subsidy Scheme is elevated to Rs. 1 crore;
- The amount of subsidy is 15 per cent;
- The admissible capital subsidy in credit lending subsidiary scheme is to be computed with reference to the purchase price of machinery and plant, instead of the term loan paid to the recipient unit.
The objective of the SIDBI scheme is to facilitate technology upgradation by offering 15 per cent upfront capital subsidy to SSI units, containing tiny, khadi, village and coir industrial units (hereinafter denoted to as SSI units), on institutional finance accepted of by them for introduction of well-established and enhanced technologies in the stated sub-sectors /products accepted under the scheme.
Scope of the Scheme
The scheme would cover the following technology products/sub – sectors:
- Drugs and Pharmaceuticals
- Plastic Moulded/Extruded Products and Parts/Components
- Rubber Processing including Cycle/Rickshaw Tyres
- Food Processing (including Ice Cream manufacturing)
- Leather and Leather Products including Footwear and Garments
- Wires & Cable Industry
- Auto Parts and Components
- Forging & Hand Tools
- General Engineering Works
- Steel Furniture
- Printing Industry
- Machine Tools
Who can benefit?
The eligible beneficiaries include :-
- Sole Proprietorships,
- Co-operative societies,
- Partnerships, and
- Private and Public limited companies in the small scale industries i.e. SSI sector.
- Copy of SSI Registration Certificate.
- Copy of Bank Term Loan Statement of account displaying release dates.
- Copy of Term Loan Sanction Letter.
- Audited Balance Sheet for the latest 3 years before to loan sanctions, or copy of project report submitted to bank.
- Copy of machinery invoice(s) with the bill of entry (imports).
- Stamp Paper – Rs. 200/- in the name of the unit.
- Company letter head – 6 Number.
- Owner’s Details: Name of proprietor/Directors of Company/partner. Their age, father’s/spouse’s name, housing address. Installation date of each machine and date of put to marketable use. Rise in Capacity after installation of Machinery – Monthly – Sales, Profit and Loss, etc.
Cap on amount of Subsidy:
|S.No.||Existing Investment Limit||Maximum calling of loan
eligible for support*
|Maximum subsidy available
under the scheme
|1.||Tiny units with investment in plant and machinery lower than Rs. 10 lakh||Rs. 8 lakh||Rs. 0.96 lakh|
|2.||Tiny units with Investment in
plant and machinery ranging in
between Rs. 10 lakh to Rs. 25 lakh
|Rs. 20 lakh||Rs. 2.40 lakh|
|3.||Small scale industries units with
investment in plant and
machinery higher than Rs. 25 lakh
|Rs. 40 lakh||Rs. 4.80 lakh|
* the eligible subsidy would be computed on the basis of the actual loan amount or highest ceiling on loan eligible for subsidy, whichever is lesser.