The Scheme envisages grants-in-aid @ 35% of eligible project cost in general areas and @50% of eligible project cost in the North East States including Sikkim and difficult areas namely Himalayan States (i.e. Himachal Pradesh, Jammu & Kashmir and Uttarakhand), State notified ITDP areas, Islands and SC/ST entrepreneurs subject to max. of Rs. 10.00 crore per project.
The grants-in-aid is credit linked but not back-ended.
Release of Grant
First installment of 35% of the total approved grant is released to the PEA after incurring an expenditure of 35% of the bank term loan and 35% promoters contribution/ equity;
Second installment of 40% of the total approved grant is released after incurring an expenditure of 75% of the bank term loan and 75% of promoters’ contribution / equity;
Third installment of 15% of the approved grant is on 90% completion of the project and submission of requisite documents.
Fourth / Final installment of 10% of the approved grant is on completion of the project and submission of requisite documents.