A. Revision of Central Interest Subsidy Scheme for new units
The subsidy will be provided in terms of the scheme notified vide Notification No.10(3)/2007- DBA.II/NER dated 27.7.2007 except that the interest subsidy will be available only on term loans of 5-10 years maturity taken to finance capital expenditure on setting up of industrial units or for capital expansion on substantial upgradation / modernization. The interest subsidy will be limited to term loans up to Rs. 10 crore only to subsidize cost of borrowing above PLR to the extent of up to 3% p.a. so as to ensure that post-subsidy interest rate does not fall below the Prime Lending Rate of the concerned bank or financial institution. The subsidy due every year will be accumulated in a separate account and adjusted against the outstanding loan / interest due at the time of closure of the term loan.
B. Revision of Central Capital Investment Subsidy Scheme
The subsidy will be provided in terms of the scheme notified vide Notification No.10(3)/2007-DBAII/NER dated 27.7.2007 except that the subsidy for the new units (which commenced production after 1.12.2014) will be limited to Rs. 5 crore per industrial unit operating in manufacturing sector and Rs. 3 crore per industrial unit operating in services sector.