New Machinery Subsidy

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Assistance of Capital and Interest Subsidy for New Machinery

Eligible New Unit

• New enterprise during the operative period of the scheme must commence production during the operative period.
• Existing enterprises carrying out new investment at other locations to manufacture the same/new end product, which has filed a Separate EM-II and commences commercial production during the operative period of the scheme, will be considered as a new enterprise.
• The new enterprise should have separately identifiable capital investment.
• ‘Separately identifiable capital investment’ means it should not have any production linkage with the existing manufacturing process, and the product should be a separate product with independent marketability. The new unit should be in a separate building, maintain separate books of accounts, and the project should be appraised independently by a financial institution as a viable project.
• Such new enterprises will be eligible for assistance as a New enterprise and can apply for one-time assistance for expansion/diversification during the operative period of the scheme.

For Expansion refers to existing enterprises carrying out new investment at the same premises to expand plant capacity for the same product and commencing commercial production of the said expansion during the operative period of the scheme.

For Diversification refers to existing enterprises carrying out new investment at the same location to expand plant capacity to manufacture a new end product and commencing commercial production of the said expansion during the operative period of the scheme.

For carrying out modernization of an existing unit with investment in plant, machinery, and equipment by more than 25% of its existing gross fixed capital investment, such modernization should be carried out by adopting new technology/production processes and/or improving the quality of products.

One expansion/diversification and one modernization during the operative period are eligible for new units set up during the operative period of the scheme.

One expansion/ Diversification and one Modernization during operative period shall be eligible to existing enterprises as on 1st January 2015.

Old & second-hand machinery will not be eligible for assistance.

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