Home India Ministry of Commerce and Industry Central Interest Subsidy Scheme, 2007...
Date: 31-Jan-2023 Category: Extra Ordinary State: Union Government Country: India

Central Interest Subsidy Scheme, 2007

Issued by Ministry of Commerce and Industry · DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

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Executive Summary & Key Takeaways

What it means

  • This notification from the Ministry of Commerce and Industry announces amendments to the Central Interest Subsidy Scheme, 2007. The amendments pertain to the extent of admissible interest subsidy for industrial units in the North East Region.
  • The notification clarifies the interest subsidy available to new units and existing units undergoing substantial expansion, effective from June 18, 2014.

Key Changes

  • For new industrial units located in the North East Region, an interest subsidy of 3% will be provided on the working capital advanced by Scheduled Banks or Central/State financial institutions. This subsidy is applicable for a maximum period of 10 years from the date of commencement of commercial production.
  • For existing industrial units undergoing substantial expansion, the interest subsidy will be 3% of the increase in working capital loan, calculated over and above the average working capital loan availed during the two financial years immediately preceding the commencement of commercial operation after the expansion.
  • Interest subsidy claims already considered/recommended by the SLC (State Level Committee) do not need to be reopened.
  • The calculation methodology outlined in the letter/circular dated June 18, 2014, will be used for clarity and to resolve any doubts regarding the subsidy calculation.

Impact Analysis

Suggested Action Items

  • Industrial units should refer to the calculation methodology outlined in the letter/circular dated June 18, 2014, for accurate subsidy calculation.

Stakeholders

  • Government (Ministry of Commerce and Industry): The notification reflects the government's commitment to promoting industrial development in the North East Region through financial incentives.

Key Entities Referenced

Central Interest Subsidy Scheme, 2007: The original scheme that this notification amends. It provides interest subsidies to industrial units in the North East Region. Ministry of Commerce and Industry (Department for Promotion of Industry and Internal Trade): The government ministry responsible for issuing this notification and overseeing the Central Interest Subsidy Scheme. Scheduled Banks: Banks listed in the Second Schedule of the Reserve Bank of India Act, 1934. Central/State Financial Institutions: Financial institutions owned or controlled by the Central or State Governments. State Level Committee (SLC): Committee responsible for considering/recommending interest subsidy claims.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-31012023-243303 xxxGIDHxxx CG-DL-E-31012023-243303 xxxGIDExxx असाधारण EXTRAORDINARY भाग I—खण्ड 1 PART I—Section 1 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 33] नई ददल्ली, मगं लवार, िनवरी 31, 2023/माघ 11, 1944 No. 33] NEW DELHI, TUESDAY, JANUARY 31, 2023/MAGHA 11, 1944 वाजणज्य और उद्योग मत्रं ालय (उद्योग संवधनध और आतं ररक व्यापार जवभाग) अजधसचू ना नई ददल्ली, 31 िनवरी, 2023 फा. स.ं पी-44020/3/2021-डीबीए-II.—केन्द्र सरकार 'केन्द्रीय ब्याि सजब्सडी स्ट्कीम, 2007’ िीर्धक वाली भारत सरकार की ददनांक 27 िलु ाई, 2007 की अजधसूचना संख्या 10(3)/2007-डीबीए-II/एनईआर म ें एतद्द्वारा जनम्नजलजखत संिोधन करती ह।ै 2. ददनांक 18.06.2014 स ेअनुमत सजब्सडी की सीमा के खंड-5 को जनम्नानुसार पढा िाएगा: “5. अनमु त सजब्सडी की सीमा.” नई इकाइयों के जलए: पूवोत्तर क्षत्रे में कहीं भी जस्ट्थत सभी पात्र औद्योजगक इकाइयों को वाजणजज्यक उत्पादन िुरू करने की तारीख स ेअजधकतम 10 (दस) वर्ों की अवजध के जलए अनुसूजचत बैंकों या केंरीय राज्य जवत्तीय संस्ट्थानों द्वारा उनको दी गई कायधिील पूंिी पर 3% की सीमा तक ब्याि सजब्सडी दी िाएगी। पयाप्तध जवस्ट्तार करन े वाली मौिदू ा इकाइयों के जलए: पयाधप्त जवस्ट्तार करन े वाली मौिूदा औद्योजगक इकाई के मामले म ें ब्याि सजब्सडी की लाग ू मात्रा, पयाधप्त जवस्ट्तार के बाद वाजणजज्यक संचालन िरूु होन े की तारीख स े ठीक पहले दो जवत्तीय वर्ों के दौरान औद्योजगक इकाई द्वारा प्राप्त कायधिील पूंिी ऋण के औसत के अजतररक्त कायधिील पूंिी ऋण म ें वृजि की 3% होगी। 668 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC.1] तथाजप, एसएलसी द्वारा पहल ेही जवचार/जसफाररि की िा चुकी इसी प्रकार के ब्याि सजब्सडी दावों को उन्द्ह ें पनु : खोलने की आवश्यकता नहीं ह।ै संदेहों को दरू करन/े स्ट्पष्टता के जलए, ददनांक 18.06.2014 के पत्र/पररपत्र म ें संलग्न/प्रजतपाददत गणना की पिजत लाग ू होगी। रािेंर रत् न,ू संयुक्त सजचव MINISTRY OF COMMERCE AND INDUSTRY (Department for Promotion of Industry and Internal Trade) NOTIFICATION New Delhi, the 31st January, 2023 F. No. P-44020/3/2021-DBA-II.–The Central Government hereby makes the following amendments in the Government of India Notification No. 10(3)/2007-DBA-II/NER dated the 27th July 2007 titled ‘Central Interest Subsidy Scheme, 2007’ respectively. 2. W.e.f. 18.06.2014, clause 5 of the extent of admissible subsidy shall be read as under: ―5. The extent of admissible subsidy.‖ For new units: all eligible industrial units located anywhere in the North East Region shall be given an interest subsidy to the extent of 3 % on the working capital advanced to them by the Scheduled Banks or Central State financial institutions for a maximum period of 10(ten) years from the date of commencement of commercial production. For existing units undergoing substantial expansion: the quantum of interest subsidy eligible in the case of an existing industrial unit which has gone for substantial expansion will be 3% of the increase in working capital loan over and above the average of the working capital loan availed by the industrial unit during two financial years just preceding the date of commencement of commercial operation after undergoing substantial expansion”. However, similar interest subsidy claims that have already been considered/recommended by the SLC need not be reopened. For the removal of doubts/for the sake of clarity, the methodology for calculation as appended/enunciated in the letter/circular dated 18.06.2014 shall prevail. RAJENDRA RATNOO, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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