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Fund for SMEs under National Manufacturing Policy

By Niranjan Mudholkar,

Added 12 August 2016

Provides subsidy of up to 10% of capital expenditure incurred on new plant and machinery (on procuring plant and machinery)

The incentives consist of:

i. Five percent interest reimbursement of the nominal interest charged by lending agency;

ii. Ten percent capital subsidy;

iii. 25% grant to SMEs for expenditure incurred on Environmental and Water audits subject to a maximum of Rs. 1 lakh in NIMZs;

iv. Units practicing zero water discharge are eligible for 10% onetime capital subsidy on the relevant equipment/systems subject to actual usage for one year and third party certification; and

v. Access to the patent pool and/or part reimbursement of technology acquisition costs upto a maximum of Rs.20 lakh for acquiring appropriate technologies patented upto a maximum of 5 years generally, prior to the date of submission of the project.
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