The 'Interest Subvention on Working Capital' component, part of the broader 'Assam Tea Industries Special Incentives Scheme (ATISIS)', is an initiative by the Finance (Institutional Finance) Department, Government of Assam. Its primary objective is to bolster the long-term financial sustainability of the vital tea industry in Assam. Furthermore, the scheme actively incentivizes tea manufacturers to transition from the traditional Crush, Tear, Curl (CTC) tea production method to the more premium Orthodox tea production, which often commands better market prices and offers diversification. This strategic move is aimed at enhancing the competitiveness and value proposition of Assam tea on a global scale. The scheme offers an interest subvention of 3% per annum on working capital loans, directly reducing the financial burden on eligible units.
The implementation of this crucial component is a collaborative effort involving the Finance Department and the Industries & Commerce Department, Government of Assam. They work through a network of multiple implementing agencies, primarily comprising various Scheduled Commercial Banks and Public Financial Institutions, as well as the District Industries & Commerce Centres across Assam. This multi-agency approach ensures broad reach and efficient processing of applications and claims.
A key feature of the scheme is its modern, transparent application process. Applications are accepted exclusively online through a dedicated portal, streamlining the submission and verification stages. The interest subvention is disbursed directly to the beneficiary's bank account via a Direct Benefit Transfer (DBT) mechanism, ensuring that the financial support reaches the intended recipients efficiently and without intermediaries. This reimbursement-based system allows eligible tea units to claim the subvention on completion of every financial year, covering working capital loans sanctioned or renewed from April 1st of the applicable financial years up to FY 2027-28.
