Investment Promotion Scheme (IPS) for Textile Sector: Assistance Of Interest Subsidy For Textile Sector

This scheme is applicable to both new enterprises and existing enterprises looking to expand or diversify during the scheme's operative period.

Loans sanctioned by a bank or financial institution as per RBI guidelines for industries located in the Union Territory (U.T.) are eligible for the subsidy.

The enterprise must apply through the online portal within one year from the date of eligibility.

The interest subsidy is eligible either from the date of the first disbursement of the loan or from the date of commencement of commercial production, whichever is later. However, reimbursement of the interest subsidy will be made only after the commencement of commercial production of the enterprise.

If the Enterprise defaults on the payment of interest or an installment of the term loan to the Bank or Financial Institution, as per the guidelines of the Reserve Bank of India (RBI) and as mentioned in the certificate of the Bank/Financial Institution, the period of default will be deducted from the subsidy period.

No, the interest subsidy is not available for penal interest or any other bank charges.

Yes, the eligible Enterprise must bear a minimum of 2% interest levied on the term loan by any Bank or Financial Institution. The Enterprise must submit details and an undertaking in this regard.

The interest subsidy will be directly credited to the Bank or Financial Institution where the term loan is held.

If a newly setup enterprise is sold or otherwise transferred to a new owner during the period of five years, the benefit of the incentive shall be available to such transferee or the new owner, only for the unexpired portion.

Expansion/Diversification means where an existing / New Enterprise increases its investment by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing Gross Fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme. Only one Expansion / Diversification will be eligible for assistance during the operative period of the Scheme.

Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

The operative period of scheme is from 20.05.2022 till 5 years that is 19.05.2027.

The enterprise can avail benefit commencing from date of production till 5 years even if that period falls beyond operative period.

The eligible unit can apply by visiting single window portal website which is "swp.dddgov.in", and once page pops-up the user have to go to departments tab and select district industries tab under which the user have to click on apply for investment promotion scheme: 2022 to 2027.