UNIDO Subsidy for MSMEs:
Eligible MSMEs can avail of a substantial 50% subsidy when installing high-temperature solar water heating systems under specific UNIDO programs. This initiative significantly reduces the upfront capital expenditure for industrial heating solutions.
Accelerated Depreciation Benefits:
Investments in solar projects qualify for major tax relief. Businesses can claim 40% depreciation on installation costs in the first year. When combined with the additional 20% allowance for new manufacturing machinery, the total eligible depreciation can reach up to 60%. Note: To claim the full benefit, the asset must be operational for more than 180 days within the fiscal year. Usage of less than 180 days attracts proportional depreciation.
Capital Subsidy via DIC
Through the District Industries Centre (DIC), Micro, Small, and Medium Enterprises (MSMEs) are eligible for a 25% Capital Subsidy, providing direct financial support to offset project costs.
SIDBI – 100% Green Financing:
The Small Industries Development Bank of India (SIDBI) offers specialized green financing with up to 100% funding for solar project costs.
- Low Interest: Attractive rates tailored specifically for MSMEs.
- Interest Subvention: Avail an additional 2% interest reduction under government-supported sustainability schemes.
- Ease of Payment: Features flexible repayment tenures and accelerated processing for renewable energy projects.