The STHAPAN Scheme aims to promote capital investments in the MSME sector by assisting Greenfield Manufacturing units. It provides financial assistance in the form of a term loan for plant & machinery, purchase of land, construction of factory buildings, purchase of equipment, miscellaneous fixed assets, installation of rooftop solar projects, etc., under the product-linked incentive schemes. This scheme is valid up to 31st March 2022 and may be extended based on demand.
Eligibility Criteria:
- The main objective of STHAPAN is to provide financial assistance to Greenfield units for setting up new units.
- The Promoters of the new entity should have 5 years of experience in the business.
| List of Sectors under STHAPAN Scheme | |
|---|---|
| Automobiles and Auto Components (excluding dealership but including general Engg.) | Specialty Steel |
| White Goods (including ACs and LEDs) | Textile Products: MMF Segment and technical textiles |
| High-efficiency solar PV modules | Advanced Chemistry Cell (ACC) Battery |
| Drugs and Pharmaceuticals (including ingredients) | Food Products |
| EV Charging Stations | Medical Devices |
| Healthcare Centers (including Hospitals, nursing homes, and diagnostic centers) | Mobile Phones and accessories |
| Agri allied sectors | Renewable sectors (including rooftop solar) |
| Aerospace and defense | Garmenting |
| Paper & Paper Products | Rubber and Rubber Products |
| Plastic & Plastic Products (excluding single-use plastic) | Chemical and Chemical Products |
- MSMEs projects other than the above-mentioned sectors may also be covered under the scheme subject to in-principle approval from RO In-charge.
Quantum of Assistance:
- Term Loan up to Rs.1500 Lakh per unit/borrower, subject to a maximum of 75% of the project cost.
- Higher Term Loan for plant & machinery, purchase of land, and construction of buildings, etc., up to Rs.2000 Lakh per unit shall be subject to in-principle approval as per the Loan Policy.
- Promoters have to contribute a minimum of 25% of the project cost.
Interest Rate and Repayment:
- The interest rate will be 6.00% to 7.30% p.a for the first year. From subsequent years, it will be based on internal rating.
- Repayment up to 7 years, including a moratorium of up to 2 years.
Conclusion:
This scheme will boost capital investment in Greenfield manufacturing units. The attractive interest rate, term loan up to Rs. 2000.00 lakhs, and quick sanctions are the main benefits under the scheme. MSMEs setting up new units in identified sectors are beneficiaries under this scheme.
For further clarification, we at SDS Fin Advisory LLP specialize in Project Finance, MSME Loan, Term Loans, Machinery Loans, Working Capital Loans, Unsecured Loans, and Government Subsidy services, with over 20 years of experience. We provide top-quality project finance consultancy services and MSME subsidy services in Ahmedabad, with over 1000 happy clients.
Feel free to contact us at 848596003 or sdsfinadvisory305@gmail.com.