What you get
- Subsidy @ 50% on the cost of diagnostic study by technical institutions initiated through Financial Institutions/Banks/Government with a maximum of ₹50,000/-. | - 50% of fees (maximum ₹50,000/- per unit) will be reimbursed on implementing suggestions given by the experts in the field of technology, marketing and finance engaged to advise sick units. | - Interest subsidy @ 5% per annum limited to ₹3,00,000/- per year for 3 years on additional finance disbursed by Banks/Financial Institutions for Rehabilitation. | The interest subsidy will be paid through the financial institution. | The financial institution shall mean and include PIPDIC or any other Government Corporation, Scheduled Banks including Co-operative Banks.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
Who makes the final decision regarding the assistance for rehabilitation of sick enterprises?
The Committee for Rehabilitation of Sick Enterprises, chaired by the Secretary to Government (Industries and Commerce), makes the final decision regarding assistance for rehabilitation.
What institutions are considered as financial institutions for the purpose of this scheme?
Financial institutions include PIPDIC, Government Corporations, Scheduled Banks, and Co-operative Banks.
Are there any additional persons who may be involved in the decision-making process?
Yes, the Chairman of the Committee may co-opt the Branch Manager of Financing Banks, President/Secretary of Industrial Association, or any other relevant persons to the industry for assistance in decision-making.
Can other firms taking over sick units for rehabilitation also receive assistance?
Yes, other firms taking over sick units for rehabilitation are also eligible for assistance under this scheme.
What is the procedure for applying for assistance under this scheme?
Sick industrial enterprises meeting the criteria must apply to the Director of Industries for rehabilitation in the prescribed form. The application will be reviewed by a Committee constituted for the Rehabilitation of Sick Enterprises.
What assistance is provided to sick enterprises under this scheme?
Sick enterprises can avail a subsidy of 50% on the cost of diagnostic studies, reimbursement of fees for engaging experts in technology, marketing, and finance, as well as an interest subsidy of 5% per annum for three years on additional finance disbursed for rehabilitation.
How is 'sickness' defined within the context of this scheme?
Sickness within the scheme refers to various criteria including a continuous decline in gross output over two financial years, delayed repayment of loans, and erosion in net worth due to accumulated losses.
What is the official name of the scheme, and when did it come into effect?
The scheme is officially titled "Motivation of Entrepreneurs and Financial Assistance for Rehabilitation of Sick Industries" and has been in operation since April 1, 2017.
How are funds disbursed to eligible enterprises under this scheme?
Funds are disbursed through the respective financial institutions or banks, with the interest subsidy being paid directly to the financial institution based on the claim submitted by the enterprise.
Can sick enterprises apply directly to financial institutions for assistance under this scheme?
No, sick enterprises must apply to the Director of Industries for rehabilitation, and the application will be processed through the Committee for Rehabilitation of Sick Enterprises.
Can sick enterprises outside the MSME sector apply for assistance under this scheme?
No, only Micro, Small, and Medium Enterprises (MSMEs) are eligible for assistance under this scheme.
How long is the interest subsidy provided for additional finance disbursed for rehabilitation?
The interest subsidy of 5% per annum is provided for three years on additional finance disbursed for rehabilitation purposes.