The Hindu Business Line : Loan ceiling for small-scale units raised to Rs 1 cr

THE Cabinet Committee on Economic Affairs (CCEA) has approved a series of amendments to the on-going credit-linked capital subsidy scheme for the small-scale industries, including raising the ceiling for loans under the scheme to Rs 1 crore from the existing Rs 40 lakh.

The CCEA also decided to raise the rate of subsidy to 15 per cent from the existing 12 per cent for such units. Furthermore, it was decided that the capital subsidy available would be calculated on the basis of purchase price of plant and machinery instead of the term loan that has been disbursed to the beneficiary unit.

Besides, the CCEA also extended the validity of the scheme till March 31, 2007. At the meeting it was also decided to do away with the practice of categorisation of SSI units in different slabs on the basis of their present investment for determining the eligible subsidy.

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