The Department for Promotion of Industry and Internal Trade (DPIIT) was established in the year 1995 and was reconstituted in the year 2000 with the merger of the Department of Industrial Development.
Eligible Units: - For both New and Expanding Units
Capital Interest Subvention, a key component of the UNNATI scheme, offers financial relief to eligible businesses. Interest on loan up to the principal amount of Rs. 250 crore for investment in eligible plant and machinery (for manufacturing sector) or building and all other durable physical assets (for service sector) shall be eligible for Capital Interest subvention. If the total principal amount of loan (loan being defined as a whole and not as per draw-down amount in each tranche) is more than Rs. 250 crore, then interest on the loan amount exceeding Rs. 250 crore would not be eligible for Capital Interest Subvention.
The Capital Interest Subvention would be eligible on the amount disbursed and not on the principal amount sanctioned for the term loan.
A unit will be eligible for this incentive only if it installs new plant and machinery (for manufacturing sector) or constructs new building and installs other new durable physical assets (for service sector) where purchases have been made based on Arm‘s Length Pricing.
All eligible units located in Zone A category blocks in the States of North Eastern Region can avail Capital Interest Subvention at the annual rate of interest of 3% for a maximum of 7 consecutive years from any date after the date of application for registration under this scheme. However, disbursement of the eligible amount under this incentive shall begin only after the commencement of commercial production.
All eligible units located in Zone B category blocks in the States of North Eastern Region can avail Capital Interest Subvention at the annual rate of interest of 5% for a maximum of 7 consecutive years from any date after the date of application for registration under this scheme. However, disbursement of the eligible amount under this incentive shall begin only after the commencement of commercial production.
Please refer to the guidelines of the scheme for more details.
*Disclaimer : The incentives under this scheme may be granted by the competent authority as laid out in the guidelines, subject to the availability of funds and discretion of DPIIT.
