The maximum grant extended per project is Rs 5.00 crore @ 35% of the eligible project cost for general areas and @ 50% for North East States, Himalayan States, ITDP Areas and Islands respectively. The grant is provided only in respect of technical civil work and eligible plant & machinery.
Release of Grant
The grant-in-aid under the scheme is released in three installments of 25%, 40% and 35% as per following schedule.
The first installment of 25% of the approved grant is released after ensuring that 25% of the promoter’s contribution and 25% of the term loan is spent on the eligible project cost;
The second installment of 40% of grant is released after ensuring utilization of first installment of grant released, 65% of promoter’s contribution and 65% of term loan;
The third and final installment of remaining 35% of the approved grant under the scheme is released after ensuring utilization of the second installment, 100% of promoter’s contribution and 100% of term loan.