will operate in two phases viz. for establishment of pre-proof of concepts of innovations and for product and process development. In both the phases, projects will be implemented at the industry site. However, in any case the actual project cost would not involve cost of land and building but only capital investment and recurring costs.
The following structure of funding will be available to industry depending on the project cost and own resources brought in by the promoter to the project.
- If the actual project cost is upto Rs. 25 lakhs, 80% of the project cost will be available as a government grant.
- If the actual project cost is between Rs. 25 lakhs and Rs. 100 lakhs, 50% of the project cost will be available as government grant subject to a minimum of Rs. 20 lakhs and maximum of Rs. 50 lakhs.
- If the project cost is beyond Rs. 100 lakhs, in addition to the Govt. grant of Rs. 50 lakhs, the unit will be eligible for interest free loan upto 50% of the amount (subject to a limit of Rs. 50 lakhs as loan) by which the total project cost exceeds Rs. 100 lakhs.
It is proposed to provide soft loan upto Rs. 10 crores for a project as per its requirement. Soft loan upto Rs. 100 lakhs will carry a simple interest of 1% while the interest rate will be 2% (simple interest) on the amount of loan beyond Rs. 100 lakhs. The role of public R&D institution at this stage too is critical, as many of the projects would continue to require technical support from the public funded R&D institutions. The partner in the public institution at this stage will get the R&D support as grant.