Interest Subsidy Scheme for Textile MSMEs aimed at supporting textile Micro, Small, and Medium Enterprises (MSMEs) across the state. This initiative is designed to lower the cost of financing for textile businesses by subsidizing the interest on term loans. This strategic move is intended to foster the growth and expansion of textile enterprises by making financial resources more affordable. Interest Subsidy Scheme for Textile MSMEs The primary goal of the scheme is to reduce the financial burden on textile MSMEs by providing an interest subsidy on term loans.The assistance varies by the category of the block: B category blocks: 6% subsidy, up to INR 20 lakh per year. C category blocks: 7% subsidy, up to INR 30 lakh per year. D category blocks: 7% subsidy, up to INR 50 lakh per year. These subsidies are available for a period of seven years and apply to new projects as well as expansion, diversification, and modernization of existing projects. Eligibility Criteria for Interest Subsidy Scheme for Textile MSMEs Eligible enterprises are those that engage in various textile-related activities, from ginning and pressing to technical textiles and apparel manufacturing. To qualify, enterprises must:· Be registered with Udyam and have a Haryana Udyam Memorandum.· Have availed a term loan from a recognized financial institution after the commencement of the scheme.· Being commercial production and not listed as a non-performing asset (NPA) with any financial institution. Application and Documentation Applications must be submitted through the Directorate of MSME’s web portal within three months of the financial year-end for which the subsidy is claimed. Required documents include the Udyam Registration Certificate, proof of term loan disbursement, and financial statements among others. Procedure and Time Limits for Claims The scheme outlines a clear process handled by the District MSME Centers, where applications are scrutinized for eligibility and compliance. Enterprises can appeal against any adverse decisions to the Director General of MSMEs or the Administrative Secretary, Industries & Commerce, ensuring that there is a fair process for addressing grievances. Competent Authority and Sanctioning Process The Additional Director of the Department of Industries and Commerce is designated as the competent authority for the sanctioning of subsidies, ensuring a centralized and streamlined process for the evaluation and approval of applications. Penalties and Recourse Strict penalties, including the repayment of subsidies with interest, are imposed for any misrepresentation or fraud in accessing the scheme. This is intended to ensure that only deserving enterprises benefit from the scheme and that the funds are used appropriately. Conclusion The Interest Subsidy Scheme is a significant initiative by the Haryana Government to promote sustainable growth in the textile sector by making credit more accessible and affordable. By reducing the cost of borrowing, the scheme aims to encourage investment in the textile industry, thereby boosting job creation and economic development in the state. Rapid Consulting’s Role in Facilitating the Process Rapid Consulting provides specialized assistance to textile MSMEs in Haryana under the ‘Interest Subsidy Scheme for Textile MSMEs’ as outlined in the Haryana Aatma Nirbhar Textile Policy 2022-25. They assist enterprises by clarifying the scheme’s eligibility requirements, aiding in the preparation and submission of applications, and ensuring that enterprises comply with the guidelines to maximize financial benefits through interest subsidies on term loans for various textile-related projects. Impact of the Scheme on Industrial Growth The scheme significantly boosts Haryana’s textile sector by providing interest subsidies to reduce the financial burden on textile MSMEs engaging in new projects or expanding, diversifying, and modernizing existing operations. This financial support enables textile enterprises to invest more aggressively in innovative and high-value textile solutions, thereby driving industrial growth, enhancing competitiveness, and supporting sustainable economic development in the region. Future Prospects and Enhancements Looking ahead, potential enhancements to the scheme might include expanding the eligibility to include additional forms of textile-related activities, increasing the subsidy caps to accommodate larger projects, or extending the duration of the scheme to provide long-term support. Additionally, linking this subsidy more closely with other state or national economic development initiatives could further enhance its impact, helping to create a more robust textile sector in Haryana. Target Sectors in Haryana The “Interest Subsidy Scheme for Textile MSMEs” is part of the Haryana Aatma Nirbhar Textile Policy 2022-25. It supports a wide range of textile activities such as spinning, weaving, dyeing, processing, technical textiles, and garment manufacturing across Haryana. This scheme aims to bolster investments and technological advancements in the textile industry by reducing the financial burden of interest on loans. Eligibility for Existing Businesses and New Ventures Eligibility includes new, existing, and expanding textile enterprises that have obtained a Udyam Registration Certificate (URC) and Haryana Udyam Memorandum (HUM). These enterprises must have availed term loans from financial institutions after the policy’s notification and be in regular production without being classified as non-performing assets (NPAs). Integration with Other Subsidies and Incentives This scheme integrates with the broader objectives of the Haryana Enterprises and Employment Policy-2020, aiming to enhance the competitiveness of textile enterprises while promoting sustainable industrial growth within the state. Application Process: Applications must be submitted through the MSME web portal within three months from the end of the financial year or after completing the relevant financial transactions. The process is managed by the district MSME center, ensuring adherence to the policy’s guidelines and verification of the operational status of the enterprise. Geographical Preferences in Haryana: The financial assistance varies based on the location of the textile unit within the state. Higher subsidies are provided in less developed ‘D’ category blocks, followed by ‘C’ and ‘B’ categories, encouraging equitable economic development across different regions. Summary The Interest Subsidy Scheme for Textile MSMEs offers significant financial incentives to textile MSMEs across Haryana, promoting the adoption of advanced technologies and practices. By subsidizing the interest on term loans, the scheme helps businesses manage costs more effectively, contributing to the state’s economic and environmental sustainability goals. How to Reach Us ? Website: Visit our official website for detailed information, and service offerings, and to schedule an online consultation. Direct Contact: Call us at +91-9467248028 / 9416506136 or
