J&K Working Capital Interest Subvention

The Working Capital Interest Subvention (WCIS) scheme forms part of the New Central Sector Scheme 2021. It is intended to encourage industrial growth and economic development in Jammu & Kashmir. The scheme offers a subsidy on the interest payable on working capital loans, easing the financial load on newly set up industrial units as well as existing enterprises that undertake substantial expansion. It supports fresh investment, business expansion and the continued operational viability of businesses in the region. Through this relief, the Government of Jammu & Kashmir aims to make the business environment more supportive, which in turn contributes to job creation and economic prosperity in the Union Territory.

Eligible industrial units receive a 5.5% interest subvention on their approved working capital loans. The benefit runs for a maximum of five consecutive years, starting from the date the unit is registered under the scheme. Assistance to any single unit under WCIS is capped at ₹5 crore across the entire five-year period. This ceiling allows the scheme to extend meaningful support to larger enterprises pursuing significant growth, improving their liquidity and reducing operational costs, and helping build a more competitive industrial landscape in Jammu & Kashmir.

Under the New Central Sector Scheme 2021, this scheme is implemented. Applications must be submitted through the procedure prescribed for the parent policy, most probably through Jammu & Kashmir's single window portal, by New Units as well as Existing units carrying out substantial expansion. Subvention takes effect from the date on which registration under this scheme is granted.

The authority tasked with implementing the New Central Sector Scheme 2021 in Jammu & Kashmir handles the processing of applications. Whether an applicant qualifies — especially as a 'new unit' or under 'substantial expansion' — is determined in line with the policy's guidelines. Those whose applications succeed are granted registration, from which point their eligibility for the interest subvention begins.