Subsidy for Technology Up-gradation

Subsidy for Technology Up-gradation

How to Get Maximum Subsidy Under State Credit Linked Interest Subsidy for Technology Up-gradation?

 

“State Credit Linked Interest Subsidy for Technology Up-gradation” has been notified under the provisions of “Haryana Enterprises & Employment Policy, 2020”, with an objective to improve the access to finance for enterprises investing in modernization and technology up-gradation.

1. Have you started your Business After Ist Jan 2021 ?

The Scheme shall commence with effect from the date of notification of the Haryana Enterprises and Employment Promotion Policy, 2020 i.e. 01.01.2021 and shall remain in operation for a period of 5 years. The assistance shall be available on term loan (Plant and Machinery) sanctioned after 01/01/2021 but before 31/12/2025.

2. Objective of scheme

The objective of Credit Linked Interest Subsidy Scheme for Technology Up- gradation is to improve the access to finance for enterprises investing in modernization and technology up-gradation.

3. Your Business Eligibility for subsidy under this scheme.

All the existing Micro and Small Units located anywhere in the State, who have filed Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM) shall be eligible under the Scheme.

Only the list of technologies approved by the Government of India under CLCSS from time to time shall be eligible for subsidy.

The eligible units must also comply with the following conditions:

1. The unit must upgrade their existing plant and machinery with State of Art Technology with or without expansion/ diversification as per guideline under CLCSS Scheme of GOI.
2. Industry also graduating from small scale to medium scale on account of sanction of additional loan under CLCSS shall be eligible for assistance. The units shall provide a certificate from Small Industries Development Bank of India (SIDBI)/National Bank for Agriculture and Rural Development (NABARD) regarding their eligibility under the CLCSS of GOI.
3. The item of manufacture of unit should not have been placed in the restrictive list as notified by the State Government from time to time.
4. Technology upgrade shall fall under – new, latest, clean, green and energy efficient technologies in different sectors.
5. Unit should have obtained NOC/CLU from competent authority, if applicable.
6. The unit should be in commercial production.
7. Unit should be in regular production at the time of disbursement and the subsidy shall not be released to a closed unit.
8. The units who have applied under GoI’s Credit Linked Capital Subsidy Scheme (CLCSS) but have not been able to avail capital subsidy due to revision in CLCSS by GoI are also eligible only after fulfilling the terms and conditions under State Credit Linked Interest Subsidy scheme.

 

4. Your Business Can get Maximum Subsidy.

The State Government shall provide 6% subsidy in ‘C’ and ‘D’ category blocks and 5% subsidy in ‘A’ and ‘B’ category blocks on term loan taken to finance technology up- gradation up to a maximum of INR 10 Lakh per year for a period of 3 years to an eligible unit in specified sectors/products (appraisal by HSIIDC/Small industries development bank of India.)

5.  Non Applicability of the scheme on some loans.

The subsidy under this scheme shall not be applicable to any foreign currency term loan, multiple loans or transferred loans.

6. Non Applicability of the scheme on Replacement of Existing Equipment.

Replacement of existing equipment/technology with the same equipment/technology will not qualify for subsidy under this scheme, nor would the scheme be applicable to units upgrading with fabricated, second-hand machinery.

7. Definitions are important For right subsidy claims:

• Small Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 10 crore and turnover does not exceed INR 50 crore as amended under the MSMED Act, 2006 or as amended by GoI from time to time.
• Micro Enterprise: Investment in Plant and Machinery or Equipment does not exceed INR 1 crore and turnover does not exceed INR 5 crore as amended under the MSMED Act, 2006 or as amended by GoI from time to time.
• Plant & Machinery: For availing subsidy under this scheme Plant & Machinery means Machinery, tools, fittings, installations, equipment (including Generating Set) installed by the Enterprise for induction of well-established and improved technology in specified sub-sectors/products.
• Financial institution(s): means a commercial bank for the time being included in the second Schedule to the Reserve Bank of India Act, 1934, Regional Rural Banks, NBFCs and Small Finance Banks as may be specified by the Trust from time to time, or any other institution(s) as may be directed by the of India from time to time.

8. Documents Required:

The following documents are required in order to apply for the scheme:

• Copy of Udyam Registration Certificate (URC) and Haryana Udhyam Memorandum (HUM).
• Certificate of Incorporation/ Partnership deed
• Board resolution/ Power of attorney
• Change of Land Use (CLU)/ NOC from competent authority, if applicable
• Declaration on non-judicial stamp paper of INR50
• Certificate on Financial Institution/Bank’s letterhead
• CA Certificate regarding investment in plant & machinery for new unit/expansion/ diversification
• Audited balance sheet of the unit of last year (if Applicable)
• Copy of first sale bill

If you are planning for this then contact us at- 9017151780

We at KIP provide assistance in new business opportunity and many subsidy schemes applicable on various businesses. So, if you want to know more subsidy schemes visit-

• Collateral Free Credit Guarantee Scheme- https://kipfinancial.com/collateral-free-credit-guarantee-scheme/
• Electric Duty Exemption– https://kipfinancial.com/electric-duty-exemption/
• Testing Equipment Scheme– https://kipfinancial.com/testing-equipment-scheme/
• Employment Generation Subsidy Scheme- https://kipfinancial.com/employment-generation-subsidy/

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