Tariff Payroll Assistance

4. Who will be eligible?

• The New & Existing Enterprises which are registered as an industrial unit and as MSME with respective DIC are and obtained IEM form GOI, are eligible to get benefit under the scheme.
• The New Enterprise, which is engaged in manufacture, production, processing or job work of articles (i.e. Garment, Apparel) & started its commercial production within policy period, is eligible.
• Enterprise should have at least 75 Machines (including cutting, stitching, sewing machines) and 150 employees.
• Unit can avail incentive either as a New Unit or as expansion unit.
• Expansion of Unit means any unit engaged in garment manufacturing activity and proposed to increase its production capacity or quality enhancement is called expansion. Expansion must have to done within operative period of the scheme. Expansion will be consider after given below criteria will be fulfil.
  1. Unit must have to do expansion by installing minimum 75 Machines (including cutting, stitching, sewing machines) and generation of 150 additional jobs.
  2. Existing machinery production capacity must be utilized 75% of its installed capacity in any one of the preceding three financial years.

5. Assistance Available

• Interest subsidy @ 5% of term loan Maximum limit of Rs. 7.5 Cr. per annum, for 5 years.
• Power tariff subsidy @ Rs. 1 per unit for 5 years.
• Payroll Assistance @ 50% of Wages. Maximum Rs. 4000 per month for Female Employee and Rs. 3200 per month for Male Employee for period of 5 years.

6. Basic Conditions of Scheme

• Term loan is compulsory and unit will have to apply for registration within 3 months from date of
• term loan sanctioned.
• Non-Banking Financial Institution will not be eligible.
• The enterprise has to apply for sanction within 1 year from date of commercial production in case of both new and expansion.
• If fails to apply for the same then the benefit will be available for remaining period only.
• The eligible unit shall have remained in production at least for 10 years from the date of
• commencement of commercial production.
• Pay Roll Assistance shall be available only for the workers registered under EPF scheme.
• All machineries specified in TUF list would be eligible for benefit of the scheme.
• 2nd Hand Machineries not eligible.
• Investment in Land, Building and Plant & Machinery will be considered for Interest Subsidy.