Programme To Accelerate Development for MSME Advancement (PADMA)
Dear-Businessman/Investors,
In Series of KIP: Business and Subsidy Update, today we are going to share with you an informative series i.e., “PADMA Interest Subsidy Scheme” under Programme to Accelerate Development for MSME Advancement (PADMA) notification dated 29th November 2022 and re-notified in Gazette vide No. 12/2/2022-1IB-II dated 17th August 2023.
Objective :
The major objective of the scheme is to increase the productivity and reduce the cost of credit for micro and small enterprises related to PADMA identified products. Through this scheme, the State Government will provide financial assistance to micro and small enterprises inside/outside the approved PADMA cluster.
Quantum of Assistance:
For units inside the PADMA Cluster:
A financial assistance shall be provided on the term loan to micro and small enterprises inside the approved PADMA cluster by the way of reimbursement of interest @6% p.a. or actual rate of interest paid, whichever is less, up to a maximum of Rs.20 lakh per financial year for new/expansion/ diversification/modernization projects.
The PADMA interest subsidy shall be allowed for 05 consecutive financial years, from the date of
re-notification of said policy or date of loan sanctioned/disbursed, whichever is later.
Eligible Entities:
Under this scheme incentives can avail by an entity/organisation such as Proprietary, Partnership, Pvt. Ltd. Company, Public Ltd., LLP (Limited Liability Partnership) and Co-operative society etc.
Eligibility/key points of scheme:
- The unit should have filed Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM).
- The unit should be in commercial production i.e., benefit under the scheme may be availed only after commencement of commercial production.
- The unit should be in regular production at the time of disbursement and the subsidy shall not be released to the closed unit.
- The unit may avail the benefit every year till 05 consecutive financial years, from the date of re-notification of said policy or date of term loan sanctioned/disbursed, whichever is later or as extended by State Government from time to time.
- The applicant should not be defaulter or NPA with any of the bank.
- The unit availing incentive under this scheme will not be eligible to obtain incentives under similar scheme of other Policies of the State Government.
- The unit should be engaged in manufacturing & allied activities of PADMA approved products across the entire value chain. The units offering services which are directly related to the manufacturing of products within the PADMA cluster, like Skill Development Centre, Marketing & Branding, Service and Repair Centre, Logistics and Supply Chain Services, Business Development Services, Testing Centre Tool room, etc. or any service as approved by SLSC-PADMA with the reason to be recorded are also eligible to avail the benefits under this scheme.
- The CLU/NOC/Industrial License as applicable obtained by IA for the said PADMA cluster, will be applicable for all the units inside the PADMA cluster.
- The Agricultural/ Agri based MSMEs for better seeds are also included under this scheme so That availing loans shall be made simple and shall be done under one roof.
Commencement and Applicability:
The scheme shall commence with effect from the date of re-notification of PADMA policy i.e., 17.08.2023 and shall remain in operation for a period of 5 years up-to 16.08.2028 or till the validity of the PADMA policy.
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