Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the country's GDP, 45 percent of the manufacturing output and 40 percent of the exports. They provide the largest share of employment after agriculture. They are the nurseries for entrepreneurship and innovation. They are widely dispersed across the country and produce a diverse range of products and services to meet the needs of the local markets, the global market and the national and international value chains.
All MSMEs will be eligible as per definition of MSME act 2006 for setting up a new unit or expansion or diversification or modernization / technology up-gradation in existing unit.
Interest Subsidy @ 7% for Micro enterprises and 5% for small and medium enterprises with maximum limit of Rs. 25 lakhs per annum.
1% additional interest subsidy to youth having less than 35 years of age in case of first project & women entrepreneurs will be accorded priority.
The industrial unit will get interest subsidy once during the operative period of the scheme. This scheme is expiring on 26/02/2014 after the completion of five years from the date of issue of Government Resolution. The Industrial Unit which have gone into production on or before 26/02/2014 & obtained term loan from the bank would be eligible under the scheme.