Subsidy -Grants


Overview

A Subsidy is a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low. Governments seek to implement subsidies to encourage production and consumption in specific industries. Since the government helps suppliers through tax credits or reimbursements, the lower overall price of their goods and services is more than offset by the savings they receive. A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities in order to achieve greater economic efficiency. When the government gives a tax break to a corporation who creates jobs in depressed areas, this is an example of a subsidy. When the government gives money to a farmer to plant a specific farm crop, this is an example of a subsidy. When you are given a partial scholarship to college, this is an example of a subsidy. The objective of subsidy is to bolster the welfare of the society. It is a part of non-plan expenditure of the government. Major subsidies in India are petroleum subsidy, fertiliser subsidy, food subsidy, interest subsidy, etc.

Ask To Expert

Why you Need A Subsidy Consultant?

Subsidies and grants from the Government of Ind. act as a huge motivator for various business and con often be the reason behind early success of various industries For many previous years people have been benefitted from acquiring subsidies, but on the other hand availing subsidies requires deep knowledge and Connection in the line of work. Without proper connections & knowledge trying to avail subsidies which you are entitled to. Is huge waste of tirne/economical resources and may result in failure too

Where is Subsidy Applicable?

Government of India provides subsides (Financial Assistance / Grant-in Aid for various sectors to support and promote its various initiatives Like Make-In-India, Go-vocal-for-Local, Minimum Support Prices, Agriculture developoment etc Government provides subsidy through various department like NABARD, MSME, NHB etc.



Subsidies Providing Bodies

National Bank for Agriculture and Rural Development (NABARD)

  • Micro , Small and Medium Enterprises (MSME)
  • Ministry of Food Processing Industry (MFPPI)
  • Small Industrial Development Bank of India (SIDBI)
  • Agricultural and Processed Food Products Export Development Audthority (APEDA)
  • National Horticultural Board (NHB)
  • National Horticultural Mission (NHM)
  • Ministry of Textiles (MOT-TUF)

Subsidy Scheme of Government of India

Scheme for Technology Upgradation/ Establishment/ Modernization for Food Processing Industries

Food Processing Industries, Govt. of India This Scheme covers the following activities: Setting up/expansion/modernization of food processing industries covering all segments viz fruits & vegetable, milk product, meat, poultry, fishery, oil seeds and such other agri-horticultural sectors leading to value addition and shelf life enhancement including food flavours and colours, oleoresins, spices, coconut, mushroom, hops. The assistance is in the form of grant subject to 25% of the plant & machinery and technical civil work subject to a maximum of 50 lakh in General Areas and 33.33% upto 75 lakh in Difficult Areas (J&K, HP, Uttarakhand, Sikkim, North Eastern States, Andaman & Nicobar Islan



Government Subsidy for Small Business for Cold Chain

y of Food Processing Industries, Govt. of India The objective of the scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities without any break from the farm gate to the consumer. It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centres which includes infrastructural facilities like Processing/Multi-line Processing/ Collection Centres, etc. for horticulture, organic produce, marine, dairy, meat and poultry etc. Individual , Groups of Entrepreneurs,Cooperative Societies, Self Help Groups(SHGs), Farmers Producer Organizations (FPOs),NGOs, Central/State PSUs etc. with business interest in Cold Chain solutions are eligible to setup integrated cold chain and preservation infrastructure and avail grant under the Scheme



Scheme for Extension of Financial Assistance for Generator Set / Diesel Eng

The purpose of the scheme is to give one time subsidy to fibre/ curled coir production units in the brown fibre sector to carry out production at periods of power cut/ low voltage and to ensure supply of brown fibre and curled coir to meet the requirements of rubberized coir products, coir rope, yarn and mats and matting sectors. The quantum of subsidy for one unit will be 25% of the cost of generator set subject to a maximum of 50000/-. This will be a one time financial assistance and will be granted on the basis of expenditure incurred by the un

Support for Entrepreneurial and Managerial Development of SMEs

The objective of the scheme is to provide early stage funding for nurturing innovative business ideas (new indigenous technology, processes, products, procedure, etc.) which could be commercialised in a year. Under this scheme financial assistance is provided for setting up of business incubators. Funding support for setting up of ‘Business Incubators (BI)’. The cost may vary between 4-8 lakh for each incubatee/idea, subject to overall ceiling of 62.5 lakh for each BI. Items at per BI (a) Upgradation of infrastructure 2.50 lakh (b) Orientation/Training 1.28 lakh (c) Administrative expenses 0.22 lakh Thus the total assistance per BI - 66.50


Lean Manufacturing Competitiveness Scheme for MSME

dia The scheme provides assistance for implementation of Lean Manufacturing techniques primarily cost of Lean Manufacturing consultant (80% by GoI and 20% by beneficiari

Prime Minister Employment Generation Programme (PMEGP)

try of MSME, Govt. of India The scheme is implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The subsidy under the scheme is routed by KVIC through the identified banks for eventual distribution to the bene