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

Introduction

The “Scheme for Additional Interest Subsidy over and above RIPS 2024 and Reimbursement of Annual Credit Guarantee Fee” is a pivotal initiative under the Rajasthan MSME Policy 2024. This scheme, introduced by the Department of Industries and Commerce, aims to bolster the establishment and growth of Micro, Small, and Medium Enterprises (MSMEs) in Rajasthan. By providing financial support through interest subsidies and the reimbursement of guarantee fees, the scheme seeks to facilitate easier access to credit while reducing financial burdens for entrepreneurs.

About the Scheme

Launched as part of the Rajasthan MSME Policy 2024, this scheme is designed to assist selected projects focused on establishing new MSMEs or enhancing, diversifying, or modernizing existing ones. The initiative will remain active until March 31, 2029. Its core objective is to generate employment opportunities across various sectors and simplify the process of setting up businesses within the state.

Objectives

The primary goals of the scheme include:

• Facilitating the creation of new jobs for diverse groups within the community.
• Encouraging the establishment of new enterprises in Rajasthan.
• Providing additional interest subsidies and collateral-free loans for MSME development.

Implementation of the Scheme

This initiative will be executed through the District Industries & Commerce Centers (DICCs) under the supervision of the Department of Industries & Commerce. The Commissioner of Industries & Commerce will serve as the nodal authority overseeing the scheme’s implementation and monitoring at the state level.

Benefits of the Scheme

Eligible projects can receive an additional interest subsidy beyond what is available under RIPS 2024. The benefits are structured as follows:

Note: The duration of the additional interest subsidy aligns with the terms specified under RIPS 2024 for MSMEs. Enterprises obtaining a collateral-free term loan for plant and machinery/equipment (for amounts below INR 5 crores) from Member Lending Institutions (MLIs) under CGTMSE can also receive full reimbursement of the Annual Guarantee Fees paid to MLIs for a duration of seven years.

Eligibility Criteria

To qualify for the additional interest subsidy, applicants must meet the following criteria:

• Approval of interest subvention under RIPS 2024 is mandatory.
• The beneficiary enterprise must belong to one of the following categories:
• One District One Product (ODOP) enterprises in their respective districts.
• Enterprises owned by Scheduled Caste (SC), Scheduled Tribe (ST), or women entrepreneurs.
• Young entrepreneurs aged between 18 and 45 years launching a new enterprise with a maximum loan amount of up to ₹10 crores.
• New MSMEs or existing ones undergoing expansion, diversification, or modernization in Area Category 3 as outlined in RIPS 2024.

Application Process

How to Apply Offline

The application process involves several steps:

• Step 1: Download the application form (Annexure 1.1) from the official website.
• Step 2: Complete all mandatory fields in the application form and attach necessary documents (self-attested if required).
• Step 3: Submit the filled and signed application form along with documents to:
• The General Manager, District Industries & Commerce Centre (DICC), for loans up to ₹10 crores.
• The Commissioner, Industries & Commerce, for loans exceeding ₹10 crores.

Note: Applications must be submitted within six months of receiving approval for interest subvention under RIPS 2024.

Post-Application Procedures

• Step 1: The District Level Task Force Committee (DLTFC) reviews applications for loans up to ₹10 crores, while the High-Level Task Force Committee (HLTFC) handles those above ₹10 crores, chaired by the Commissioner of Industries and Commerce.
• Step 2: After approval, applicants can claim the subsidy and reimbursement quarterly by submitting a CA Certificate (Annexure 1.2) to the General Manager, DICC.
• Step 3: The General Manager, DICC will then disburse the sanctioned funds.

Condonation of Delay: In cases of delayed application submissions, the approval committee (DLTFC or HLTFC) may allow a delay of up to six months if valid reasons are provided in writing.

Disbursement of Benefits

Applicants need to submit claims to the respective General Manager, DICC for the release of interest subsidies and reimbursement of the Annual Credit Guarantee Fee according to the prescribed CA Certificate. The concerned General Manager, DICC will be authorized to process the release of interest subsidies based on the DLTFC/HLTFC’s approval.

Note: Claims for interest subsidies and annual credit guarantee fee reimbursements are only eligible following the release of interest subsidies under RIPS 2024 for that particular quarter.

Official Source

For further details, please visit myScheme.gov.in.