The beneficiaries would be offered subsidy of up to 35 per cent of loan settlement amount, the notification said.
The scheme would benefit owners of trucks, barges and mining equipment, who were left in the lurch when iron ore extraction was halted following a Supreme Court order. The ban was revoked earlier this year.
Under the scheme, the 35 per cent subsidy will be given on the one-time settlement (OTS) amount.
The subsidy would be capped at Rs 15 lakh for truck owners, Rs 25 lakh for mining machinery owners and Rs 35 lakh for barge owners.