MAHARASHTRA INTEREST SUBSIDY POLICY

ELIGIBILITY

The scheme comes in effect from 1^st MARCH, 2012. Duration of the scheme is from 1^st APRIL, 2011 to 31^st MARCH, 2017. The projects which are eligible under TUFS scheme are only eligible under this scheme. Whether it is new unit or expansion is done in existing unit, both units are eligible for this scheme. This scheme does not applicable to JUTE INDUSTRY.

NOTE:-

1.     As per TUFS guidelines, a basic criterion for a project to eligible under TUFS scheme is it must be sanctioned on or after 28^th APRIL, 2011.

2.    Project eligible under TUFS scheme means those projects which received UID NO from textile commissioner or those projects for which UID NO is not applicable.

LOCATION

Any unit situated in any part of MAHARASHTRA is eligible under this scheme. Only the basic criterion is it must be eligible under TUFS scheme.

APPLICABLE RATE OF INTEREST

Rate of interest applicable under this scheme is either bank primary lending rate or actual interest charged or 12.5%, whichever less is taken into consideration. (It means a unit can maximum avail benefit of 12.5%, i.e. 5% from central government and 7.5% from state government.)

BENEFITS

The scheme provide benefit in such a way that either 0% interest will be payable by unit or 2% interest will be payable by unit. If units covered under any of the particulars of TABLE-A, than rate of interest payable by unit will be 0% and if unit is covered under any of the particulars of TABLE-B, than rate of interest payable by unit will be 2% (subject to maximum rate of interest 12.5%). The TABLE’S are as follows:-

S.NO.	TABLE-A	TABLE-B
1.	All eligible textile units in vidharbha, marathawada, north Maharashtra, konkan and D+ industrial areas.	Private cotton mills in areas other than vidharbha, marathawada, north Maharashtra, konkan and D+ industrial areas.
2.	Garmenting in the entire State.	-
3.	New Powerloom industries based on modern technology in the whole state.	Private Processing Units.
4.	Modernisation of Powerlooms in the whole State.	Private Knitting Units.
5.	All types of silk projects in the entire State.	-
6.	All eligible textile units in the cooperative sector.	All other eligible private textile units.

NOTE: - A SEPERATE LIST OF DISTRICT COVERED UNDER REGION VIDHARBHA, MARATHAWADA, NORTH MAHARASHTRA, KONKAN AND D+ ZONE HAS BEEN ATTACHED.

If the unit has not taken benefit of 5% interest subsidy from central government than also it will be assumed as the unit has taken benefit of 5% interest subsidy from central government.(“Agar kisi ne central government ka 5% ka benefit nahi liya ho to bhi esa mana jayega jaise usne benefit liya hai”). 

There is no maximum limit for cost of project. (It means kitne ka bhi project ho, if TUFS mein eligible hai to yeh scheme mein bhi eligible hoga).

Period of reimbursement of interest subsidy is maximum 7 years, which includes 2 years of moratorium period. (7 years first disbursement date se count hoga, but if first disbursement 28^th APRIL, 2011 k pehle le liya to wo bhi 7 years ki limit mein count hoga, This point has no meaning until circular for eligibility of project under TUFS which is sanctioned from 1^st APRIL, 2011 to 28^th APRIL, 2011 will come.

EXAMPLE

Suppose Bank of India prime lending rate is 9.5% and actual charged interest rate is 13.25%. What benefit will be available for units covered under (1.) TABLE-A and (2.) TABLE-B?

STEP-1

Rate of interest applicable is either prime lending rate or actual interest rate charged or 12.5%, whichever is less. Thus from the above 9.5% is taken, i.e. 9.5 or 13.25 or 12.5 whichever is less is taken.

STEP-2

If the unit is covered under TABLE-A than the unit has to pay 0% rate of interest, i.e. the unit can avail 5% interest subsidy from central government and remaining 4.5% interest subsidy from state government.

If the unit is covered under TABLE-B than the unit has to pay 2% rate of interest, i.e. the unit can avail 5% from interest subsidy from central government, unit has to pay 2% interest to bank and remaining 2.5% can be claimed from state government.

SUBMISSION

The proposal for claiming interest subsidy is to be submitted in FORM-A and FORM-B. The nodal agency of banks has ID and PASSWORD to online update the same FORM’S.

The time limit to submit FORM-A is within one week after receiving UID NO from Central Government.

The time limit to submit FORM-B is within one week after receiving interest subsidy from Central Government, for the relevant quarter.