New Machinery Subsidy
Assistance of Capital and Interest Subsidy for New Machinery
Eligible new Unit:
- New enterprise during operative period of the scheme such enterprise has to commence production during the operative period.
- Moreover Existing enterprises carrying out new investment at other location to manufacture same / new end product which has filed Separate EM-II and commences commercial production during the operative period of the scheme will be consider as new enterprise.
- The new Enterprise should have separately identifiable capital investment.
- ‘Seperately identifiable capital investment’ means it should not have any production linkage with the existing manufacturing process and the product should be a separate product in itself with independent marketability. The new unit should be in a separate building, should maintain separate books of accounts and the project should be appraised independently by financial institution as a viable project.
- Such new enterprise will be eligible for assistance as a New enterprise and one time for expansion/diversification during the operative period of the scheme.
For Expansion means existing enterprises carrying out new investment at the same premises to expand plant capacity for the same product and commences commercial production of the said expansion during the operative period of the scheme.
For Diversification means existing enterprises carrying out new investment at the same location to expand plant capacity to manufacture new end product and commences commercial production of the said expansion during the operative period of the scheme.
For carrying out Modernization of 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 way of adopting new technology/ production process and/or improving quality of products.
One expansion/diversification and one modernization during operative period is eligible to new unit set up during 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.