UK MSME capital subsidy

1. Manufacturing enterprises (service sector incl. tourism, and prohibited list like brick kilns, saw mills, stone crushers, furnace units, steel ingots, tobacco, pan masala excluded)
2. New unit (production after policy issue) or substantial expansion (FCI and capacity +25%)
3. Minimum 70% permanent employment to permanent residents of the state
4. Unit must keep working 5 years; closure over 6 months = recovery with 18% interest
5. Claim must be filed fully on portal within 1 year of commercial production
6. Splitting/reconstitution or shifted/used machinery not eligible
7. Land not counted

• Capital subsidy on workshop building + plant & machinery, by area category and size; extra 5-10% for priority categories

1. Category A: 50% of FCI (max ₹50 lakh) up to ₹1 crore P&M; ₹50 lakh + 25% above ₹1 crore (max ₹1.50 crore) for small up to ₹5 crore; ₹1.50 crore + 20% above ₹5 crore (max ₹2.50 crore) up to ₹10 crore; ₹2.50 crore + 3.75% above ₹10 crore (max ₹4 crore) for medium
2. Category B: 40% (max ₹40 lakh); ₹40 lakh + 20% (max ₹1.20 crore); ₹1.20 crore + 16% (max ₹2 crore); ₹2 crore + 2.50% (max ₹3 crore)
3. Category C: 30% (max ₹30 lakh); ₹30 lakh + 12.5% (max ₹80 lakh); ₹80 lakh + 8% (max ₹1.20 crore); ₹1.20 crore + 2% (max ₹2 crore)
4. Category D: 20% (max ₹20 lakh); ₹20 lakh + 10% (max ₹60 lakh); ₹60 lakh + 6% (max ₹90 lakh); ₹90 lakh + 1.50% (max ₹1.50 crore)
5. Extra 5% for Priority category (max ₹5/10/15 lakh micro/small/medium)
6. Most-Priority category: extra 10% in Cat A/B (max ₹10/15/20 lakh), 5% in Cat C/D
7. Anchor unit with 7+ ancillaries: extra 5%; SC/ST/women/Divyang-owned: extra 5% - only one special category per unit
8. PMEGP/PMFME/MSY margin money is deducted; balance given as top-up
9. Disbursement: micro in 2 equal yearly instalments; small and medium in 5 equal yearly instalments after production

DPR with application form

• Approved bank appraisal report (term loan) - per policy para 13.6; full list in Guidelines PDF (see the guideline)