3% interest sop on tech fund

The state government has announced an additional three per cent interest subsidy on the Technology Upgradation Fund (TUF), official sources said.

The president of the Southern Gujarat Chamber of Commerce and Industry, Dinesh Mandalaywala, said on Sunday, "This additional interest subsidy will be provided on term loans taken from banks or other financial institutions. The government will deposit this money directly with the concerned institution. This scheme is valid for five years and a maximum subsidy of Rs 3 lakh per year will be provided," said Mandalaywala.

"Small-scale industries which have permanent registration from the District Industries Centre and medium and large scale industries which are recognised under the Industrial Development and Relations Act, and whose total investment, including that of land, building, plant and machinery, does not exceed Rs 10 crore, are eligible for securing this 3 per cent interest subsidy," said the chamber president.

"Units, which are already getting subsidy from the state government under one or the other scheme, are not eligible for getting this interest subsidy. Any unit, getting benefits of central government schemes, however, will be eligible for this scheme," said Mandalaywala.

The state government has also announced incentives for encouraging research and development.

"The state government has announced 50 per cent subsidy in pattern registration fee. This amount will be reimbursed on producing pattern fee documents," said Mandalaywala.

"These schemes are very encouraging and will greatly benefit local industries, especially the textile industry. The central government is already providing five per cent interest subsidy to the textile industry on TUF. With the state government's announcement, the textile industry will now get eight per cent interest subsidy," Mandalaywala said.

"I appeal to the local business fraternity to take maximum advantage of these schemes, so that we can prepare ourselves for the stiff challenges that lay in store for us in the coming years," the chamber president said.