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Agriculture,Rural & Environment; Banking,Financial Services and Insurance

"Interest Subvention on Working Capital" under the "Assam Tea Industries Special Incentives Scheme"

The scheme aims to ensure long term financial sustainability of the Tea industry and incentivize Orthodox tea production over Crush, Tear, Curl tea. It provides interest subvention, production subsidies, plant & machinery subsidies, tax holidays to tea plantations and manufacturing units in Assam.

Authority

State/ UT

Region

Assam

Status

Verified 2026

Updated

March 2026

What you get

Benefit Amount: Interest subvention of 3% per annum on Working Capital Loan. | Maximum Claimable Amount: ₹20,00,000/- per annum per unit (garden). | Validity Period: Extended for five years till the end of the Financial Year 2027-28. | Applicable Financial Years: 2023-24, 2024-25, 2025-26, 2026-27, and 2027-28. | Disbursement Mode: Direct Benefit Transfer as reimbursement. | Claim Period: On completion of every financial year.

Who can apply

The applicant must be a tea plantation across all sizes; The applicant must be a tea manufacturing unit manufacturing Crush, Tear, Curl Tea, Orthodox Tea, or Speciality tea including Green tea, Oolong Tea, White tea, Yellow tea and Purple tea; The applicant must be located entirely in Assam; The applicant must not have any part of the plantation or manufacturing facility located outside the State of Assam; The applicant must have taken loan from a Scheduled Commercial Bank or a Public Financial Institution.; The applicant must have taken Working Capital Loan for activities directly related to plantation or manufacturing of Tea.; The applicant must have Working Capital sanctioned or renewed on or after 1st April of the financial year in which claim is to be made (2023-24, 2024-25, 2025-26, 2026-27 and 2027-28).; The applicant must not have loan accounts declared as Non-Performing Asset as per Reserve Bank of India guidelines on the date of filing claim.; The applicant must not have availed any interest subsidy under any other scheme.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What types of tea plantation sizes are eligible to apply for the interest subvention benefit on working capital loans?

Tea plantations of all sizes are eligible to apply for this benefit, with no minimum or maximum size restrictions specified.

Can manufacturing units producing different varieties of tea beyond the traditional types qualify for this working capital interest subvention?

Yes, manufacturing units producing Crush, Tear, Curl Tea, Orthodox Tea, or Specialty tea including Green tea, Oolong Tea, White tea, Yellow tea and Purple tea are all eligible.

Is it mandatory for both the tea plantation and manufacturing facility to be located entirely within the state boundaries for eligibility?

Yes, the applicant must be located entirely in Assam and must not have any part of the plantation or manufacturing facility located outside the State of Assam.

What is the specific interest rate reduction provided on working capital loans under this financial assistance program?

The scheme provides interest subvention of 3% per annum on Working Capital Loan taken from eligible financial institutions.

What is the maximum financial benefit amount that can be claimed per unit annually under this working capital support scheme?

The maximum claimable amount is ₹20,00,000/- per annum per unit or garden under this interest subvention component.

Which specific financial years are covered under the current validity period of this working capital interest subvention scheme?

The scheme covers financial years 2023-24, 2024-25, 2025-26, 2026-27, and 2027-28, extending till the end of Financial Year 2027-28.

What types of banking institutions are acceptable for taking working capital loans to qualify for this interest subvention benefit?

Applicants must have taken loans from a Scheduled Commercial Bank or a Public Financial Institution to be eligible for the interest subvention.

What specific activities or purposes should the working capital loan be used for to qualify for this interest subvention?

The Working Capital Loan must be taken for activities directly related to plantation or manufacturing of Tea to qualify for the benefit.

What is the minimum timing requirement for working capital loan sanction or renewal to be eligible for claims in specific financial years?

The Working Capital must be sanctioned or renewed on or after 1st April of the financial year in which the claim is to be made.

What loan account status is required to maintain eligibility for this interest subvention benefit throughout the claim period?

The applicant must not have loan accounts declared as Non-Performing Asset as per Reserve Bank of India guidelines on the date of filing claim.

Can applicants who have already received interest subsidies from other government schemes apply for this working capital interest subvention?

No, applicants must not have availed any interest subsidy under any other scheme to be eligible for this benefit.

When is the appropriate time to submit claims for reimbursement under this working capital interest subvention scheme?

Claims can be submitted on completion of every financial year for reimbursement of the interest subvention amount.