Scheme for Additional Interest Subsidy over and above RIPS 2024 and Reimbursement of Annual Credit Guarantee Fee

DETAILS The "Scheme for Additional Interest Subsidy over and above RIPS 2024 and Reimbursement of Annual Credit Guarantee Fee" has been introduced under the Rajasthan MSME Policy 2024 by the Department of Industries and Commerce, Government of Rajasthan. Under this scheme, support will be provided to selected projects for establishment of new MSMEs or for expansion/ diversification/ modernization of existing MSMEs through the provisions given in the policy. The scheme will remain in force until 31st March 2029. Objective: The scheme’s objective is to create new employment opportunities for all sections of society in the state and to ease the establishment of enterprises in the state. The policy envisages supporting the creation of new MSMEs or the expansion/diversification/modernization of existing MSMEs through additional interest subsidies and collateral-free loans. Scheme Implementation: This scheme will be implemented through the respective District Industries & Commerce Centers in their districts under the aegis of the Department of Industries & Commerce. Office of the Commissioner, Industries & Commerce will be the nodal agency for the implementation and supervision of the scheme at the state level. BENEFITS Additional Interest Subsidy support over and above RIPS 2024 will be provided to eligible projects for establishment of new MSMEs or for expansion/ diversification/ modernization of existing MSMEs as per below: Loan Amount for plant and machinery/equipment or apparatus Interest Subvention as per RIPS 2024 Additional Interest Subvention under the scheme Up to INR 5 crores 6% 2% INR 5 crores-10 crores 4% 1% INR 10 crores-50 crores 3% 0.5% Note 1: The duration of the additional interest subsidy will be the same as prescribed under RIPS’2024 for MSMEs. Note 2: Enterprises availing collateral free term loan for plant and machinery/ equipment or apparatus (for loan amount below INR 5 Cr. only) from Member Lending Institutions (MLIs) under CGTMSE will be eligible to avail assistance as reimbursement of 100% Annual Guarantee Fees paid to MLIs for the period of seven (7) years. ELIGIBILITY Following type of beneficiaries would be eligible for additional interest subsidy as per the scheme: Interest subvention subsidy should have been approved for the applicant under RIPS 2024; and Beneficiary enterprise should fall under any of the following categories: One District One Product (ODOP) enterprises in respective districts. Enterprises owned by Scheduled Caste (SC)/Scheduled Tribe (ST) or women entrepreneurs. Young entrepreneurs in the state in the age group of 18 to 45 years for starting their new enterprise for a maximum loan amount of up to ₹10 crore. Establishment of new MSMEs or expansion/ diversification/ modernization of existing MSMEs in Area Category 3 as defined in RIPS 2024.