Jammu & Kashmir Capital Interest Subvention
Industries & Commerce Department, Government of Jammu & Kashmir · Central government
J&K's 6% annual interest subvention funds new and expanding units on loans up to ₹500 crore for eligible investments.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 85 months
About this scheme
The Capital Interest Subvention (CIS) programme operates as a financial incentive under the Jammu & Kashmir Industrial Development Scheme, 2021. It seeks to bring down the cost of capital for industrial units, with the aim of encouraging investment, supporting economic growth and creating employment across the Union Territory of Jammu & Kashmir.
Both new industrial units and existing enterprises undertaking substantial expansion projects are eligible under the scheme, which offers an interest subsidy as financial relief. By making capital easier to access and more affordable, the CIS is intended to build an environment favourable to industrial establishment and sustained growth, in line with the wider goal of strengthening the region's industrial base.
The programme covers investment in key physical assets — plant, machinery, building and other durable assets — that are required for manufacturing and service sector operations.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Jammu & Kashmir
- New industrial units, and existing units carrying out substantial expansion, are eligible. - The loan must be availed for investment in eligible plant and machinery (manufacturing sector), or for construction of building and other durable physical assets (service sector). - Interest subvention is available on loan principal of up to ₹500 crore. - Service sector units must have an investment of not less than ₹1 crore. - Disbursement of the eligible amount shall commence only after commencement of commercial production.
How to apply
- Registration under the Jammu & Kashmir Industrial Development Scheme, 2021, has to be sought by units via the designated online portal. - Documentation covering the investment plan, loan details, and proposed or actual commercial production must be furnished by applicants. - A verification process is carried out by the administering authority to establish eligibility. - The eligible subvention amount is disbursed only once the unit has commenced commercial production and every condition has been fulfilled.
How applications are assessed
The administering authority screens each application against the eligibility conditions laid down under the Jammu & Kashmir Industrial Development Scheme, 2021. This scrutiny covers whether the unit is new or expanding, the type of investment made (plant, machinery, building and the like), whether it falls in the manufacturing or service sector, and whether it meets the minimum investment thresholds.
Subvention is released only once the unit has begun commercial production, which serves as confirmation that it is operationally ready.
Frequently asked questions
What is the Capital Interest Subvention (CIS)?
Under the J&K Industrial Development Scheme, 2021, eligible industrial units receive a 6% annual interest rate reduction on their loans through the Capital Interest Subvention.
Who is eligible for this subvention?
New industrial units, as well as existing units carrying out substantial expansion, qualify if their loans fund investment in plant and machinery for manufacturing, or in building and physical assets for the service sector.
What is the maximum loan amount eligible for subvention?
What amount of loan principal qualifies for the interest subvention? Interest on loan principal of up to ₹500 crore is eligible.
How long can a unit avail this subvention?
A unit may receive the subvention for up to seven years in a row, counted from the date it applies for registration under the scheme.
Is there a minimum interest I need to pay?
If the annual interest rate drops below 8%, the unit must still pay at least 2% interest per year.
When does the disbursement of the subvention begin?
Funds are released only once the eligible unit has begun commercial production.
Sectors
- Interest Subvention
- Industrial Development
- Jk
- Manufacturing
- Service Sector
- Loan Support
Details last verified on 14 September 2026. Source: the issuer's published information.