Rajasthan Interest Subvention Scheme: 5% Subsidy for Manufacturers — Frequently Asked Questions

A qualifying manufacturing enterprise gets a 5% interest subvention on its term loan for investment in plant and machinery, equipment or plant-related apparatus. The benefit continues for 5 years, subject to the caps that apply to the enterprise's category.

No. Applications are accepted on a rolling, always-open basis, so there is no fixed closing date. Units can apply as and when their term loan and capital investment are in place.

Manufacturing enterprises are eligible, provided the term loan has been taken specifically for plant and machinery or equipment and plant-related apparatus. The scheme is open to all manufacturing enterprises in Rajasthan, with dedicated provisions for the Textile, Garments & Apparel sector.

The loan must come from a Financial Institution, a State Financial Institution or a Bank recognised by the Reserve Bank of India. Loans from other sources do not qualify.

For general manufacturing enterprises, the benefit is limited to a maximum of 2.5% of the Eligible Fixed Capital Investment (EFCI), distributed equally over the 5-year period. For enterprises in the Textile, Garments & Apparel sector, the same 5% subvention applies for 5 years but the ceiling is 2.5% of EFCI per year.

No. This is an interest subvention — a subsidy paid against the interest on your term loan. It does not involve equity, shares or any ownership stake in the enterprise, so promoters retain full control.

It supports investment in plant and machinery, equipment and plant-related apparatus that forms part of the Eligible Fixed Capital Investment (EFCI). Interest on term loans raised for that purpose is what gets subsidised.

The scheme's published eligibility conditions centre on manufacturing status and a qualifying term loan from an RBI-recognised lender, and do not list DPIIT or MSME registration as a separate requirement.

Applications are typically submitted through the Government of Rajasthan's designated online portal (rajnivesh.rajasthan.gov.in). Applicants usually need company registration documents, project reports, loan sanction letters from the financial institution, and invoices for capital expenditure. The application is then reviewed by the relevant state authorities, who verify eligibility and compliance before approving the subvention.

Rajasthan Interest Subvention Scheme: 5% Subsidy for Manufacturers is offered by Department of Industries and Commerce, Government of Rajasthan, a government body. It is provided as non-dilutive funding.