Scheme for Textile Industry

Eligible fixed Capital investment

• New Building – 
• New plant and machinery / equipment 
• Electrification, tools, accessories, Utilities 
• Effluent treatment plant

LAND COST and Second hand machinery IS NOT AVAILABLE

Eligible activities of scheme

• Weaving, including preparatory (excluding woven sacks)
• Knitting, Dyeing and/or Printing (Processing)
• Machine Carpeting, Machine embroidery
• Technical Textile (excluding woven sacks in any form of packtech)
• Made-ups (article manufactured and/or stitched from any type of cloth, but does not include garment)
• Crimping, Twisting, Texturizing, Thread, sizing, winding
• Ineligible activities of scheme

• Ginning, Spinning
• Garment and Apparel (Eligible under separate policy)
• SEZ Units

Quantum – Credit linked interest Subsidy

1. Interest Subsidy

Category	No. of Employees	Interest subsidy
MSME	–	6%
Large Enterprise	Direct employment upto 100 persons	4%
Direct employment to more than 100 and upto 200 persons	4.5%
Direct employment to more than 200 and upto 500 persons	5%
Direct employment to more than 500 persons	6%

Maximum upto Rs. 20 crore p.a. for 5 years

Conditions for interest subsidy

• To determine number f direct employment, only employees registered under Employees’ provident Fund scheme will be considered
• Bank loan to be availed from commercial/coperative bank or financial institution approved by RBI
• Apply for interest subsidy within one year from disbursement of loan or starting commercial production which ever is later – if late application then proportionate claim reduce
• Upward revision in loan within one year from date of commencement of commercial production eligible for subsidy
• If default in payment of instalments to bank then not eligible for subsidy

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