Description

Launched in 2008, this scheme aimed to create a healthy environment for setting up new industrial units and reviving sick ones by providing subsidies focused on local employment. The scheme was in force until 31st March 2011.

Benefits

Subsidies

• New units in developed talukas: 25% subsidy.
• New units in less developed talukas: 35% subsidy.
• Existing micro/small units: 10% to 15% subsidy.
• Sick units: Up to 25% subsidy.
• Total subsidy capped at 40% including additional benefits.

Additional Incentives

• 5% additional benefit under Local Employment Subsidy.
• Interest subsidy increased from 1% to 2% (capped at ₹8,00,000).

Disbursement

50% of the amount paid upon agreement. The remaining 50% paid via 6% interest bonds maturing after 5 years, provided the unit remains functional and maintains 80% local employment.

Eligibility

• Only manufacturing units (Micro, Small, Medium, Large).
• Must employ 80% local manpower (excluding contract/daily wage).
• Units must fall under “Green” or specified “Orange” categories.
• Relatives of promoters are not counted as employees for subsidy.

Application Process

Offline
Step 1: Register with the Directorate of Industries, Trade and Commerce (DITC).
Step 2: Submit half-yearly claims (Jan-Jun by Sep 30; Jul-Dec by Mar 31).
Step 3: DITC scrutinizes and forwards to Task Force Committee for finalization.

Documents Required

• Registration details and Proof of Commercial Production.
• Half-yearly Salary details.
• Magistrate-executed declaration of employee eligibility.
• Green Social Security Card for employees.