Finance & Subsidy
Before you spend a rupee on a new unit
Subsidy work rewards sequence far more than persistence. Registering after the spending starts is the most expensive mistake we see.
A promoter came to us last year having built a very good project, entirely ineligible for the incentive it should have received. Nothing was wrong with the plant. The registration had simply been done after the machinery was bought.
Sequence is the whole game
Several schemes require registration, or in-principle approval, before eligible expenditure is incurred. Expenditure before that date is usually outside the eligible period, and there is no appeal against arithmetic.
Plan finance and subsidy together
Credit-linked schemes flow through the lending bank, which means the term loan has to be structured correctly from the outset. A business that arranges its funding first and asks about incentives afterwards frequently qualifies for one and not the other.
Treat the subsidy as a reimbursement
Claims typically follow commercial production and an inspection, and release depends on the nodal agency's own cycle. Build the project's cash flow so it stands up without the subsidy, and treat the receipt as recovery of capital rather than working capital.
This article is general information, not advice on your circumstances. Positions change with each notification — please confirm before acting.
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