Overall Policy Impact (as on june 2025)

Capital subsidy (Base)

15% of FCI for investments up to INR 1,000 Cr.

Additional Capital Subsidy

For investment > INR 1,000 Cr, an additional 10% on excess FCI — capped so total subsidy may reach up to INR 250 Cr (max extra subsidy INR 100 Cr) and requires min 3,000 jobs.

Refurbished Plant & Machinery

Permitted up to 40% of FCI — allows reuse/rehabilitation of equipment within project costing.

Interest Subsidy

5% interest reimbursement up to INR 1 Cr p.a. per unit for 7 years (max INR 7 Cr per unit).

Stamp Duty & Land Rebates

100% Stamp Duty Exemption. Land rebate: 25% (Madhyanchal & Paschimanchal) and 50% (Bundelkhand & Purvanchal) — limited to 7.5% of project cost or INR 75 Cr, whichever is less.

FAR / Built-up

Floor area ratio: 3.0 with 1.0 purchasable — helps higher density development.

Lease Rental Support

25% of lease rentals for industrial sheds/buildings — up to INR 25 Lakh p.a. per unit for 5 years.

Patent Filing Reimbursement

Domestic patents up to INR 5 Lakh, international patents up to INR 10 Lakh.

Electricity Duty Exemption

Exemptions for 10 years: 50% for Paschimachal, 75% for Madhyanchal, 100% for Purvanchal & Bundelkhand.

Transport Reimbursement

50% of transport cost on imported manufacturing equipment, up to INR 2 Cr/unit for firms relocating from abroad.

Anchor Unit Bonus

5% additional capital subsidy if the investor acts as an anchor and brings ancillary units.

Focus-Area Bonus

5% extra capital subsidy for investment in focus areas like Defense Electronics, Strategic Electronics, Robotics, etc.

Remanufacturing & Repair

Units for remanufacturing, repair, or refurbishment of electronics are eligible for all policy incentives.

Capacity Expansion Eligibility

Units with minimum 25% increase in gross block qualify for incentives for capacity expansion/diversification/technology upgradation.