To provide encouragement to textile industrial units for taking up technology up-gradation and to modernize their production facilities.
The scheme envisages 5% interest reimbursement (4 percentage for spinning industry) of the normal interest charged by the bank on the loans availed by the units from the bank for undertaking technology up-gradation/modernization.
New units set up with technology as per guidelines of the scheme would also be eligible for the above benefit, or, 15% Credit Linked Capital Subsidy for Small Scale Sector and 20% for Power-loom Sector, or, 5% interest reimbursement plus 10% capital subsidy for specified processing machinery, technical textiles machinery, garmenting machinery and for CAD, CAM, Design Studio, etc.
The scheme also provides 25% capital subsidy on purchase of new machinery and equipments for the pre-loom and post-loom operations, handlooms/up-gradations of handlooms and testing and quality control equipments for handloom production units.
Minimum 20% of the project cost.
Amount of Loan
- The scheme is in operation for a period upto 31.3.2022.
- Conditions apply.