J&K Capital Interest Subvention (CIS)

Industrial and service units investing in Jammu & Kashmir can borrow at a lower cost through the Capital Interest Subvention (CIS) scheme, which operates under the New Central Sector Scheme 2021.

Units that qualify get interest subvention of 6% per annum, available for up to 7 consecutive years. The clock starts on any date following the date of application for registration. The benefit covers a term loan with a principal amount of Rs 500 crore, taken for investment in eligible new plant and machinery in the manufacturing sector, or in new building and all durable physical assets in the service sector.

The scheme is open to new units as well as existing units carrying out substantial expansion. Among the capital-cost offsets offered in the UT, it ranks among the larger ones.

1. Register under the New Central Sector Scheme 2021 through the J&K Single Window portal. This must be completed before any benefit is drawn. 2. Obtain sanction for a term loan from your lender, covering eligible new plant and machinery, or a new building and durable assets. 3. File the subvention claim together with the loan sanction letter, the disbursement schedule and proof of investment. 4. The department checks the eligible investment and disburses subvention against the interest paid. 5. Lodge the claim once every year, for a maximum of 7 consecutive years.

There is no competitive selection stage. The implementing department reviews each registration and claim, checking it against the scheme's eligibility conditions and the eligible investment that was actually made.