The Scheme was announced by the Hon'ble Prime Minister o­n 30th August, 2000 at the National Conference o­n SSI at New Delhi. The Scheme is effective from 01.10.2000 and provides for 12% back ended capital subsidy o­n loans advanced to SSI units by Banks for technology upgradation in certain select sectors. Through the financial assistance by banks for technology upgradation will be need based, the 12% subsidy support would be restricted to the loan amount as follows:

(Amt. Rs. in lakhs)

Sr. No	Investment Limit	Minimum ceiling of loan eligible for subsidy	Maximum Subsidy available
1	Tiny units with investment in P&M less than Rs. 10 lakh	8	0.96
2	SSI units with investment in P&M between Rs. 10 lakh to Rs. 25 lakhs	20	2.4
3	SSI units with investment in P&M above Rs. 25 lakhs	40	4.8