Interest Subvention on Working Capital under the Assam Tea Industries Special Incentives Scheme
By Finance (Institutional Finance) Department, Government of Assam
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Quick Answer
This scheme provides a 3% interest subvention on working capital loans to eligible tea plantations and manufacturing units in Assam, promoting financial sustainability and a shift to Orthodox tea production.
About this subsidy
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.
Eligibility
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Subsidy providers
Benefits & Funding
- Amount
- Up to ₹20L
What You Get
- Interest Subvention: Eligible units receive an interest subvention of 3% per annum on their working capital loans. This directly reduces the cost of borrowing for critical operational needs.
- Maximum Annual Benefit: Each eligible tea manufacturing unit (garden) can claim a maximum of ₹20,00,000/- per annum.
- Long-Term Support: The scheme is extended for five financial years, covering 2023-24 to 2027-28, providing sustained financial relief.
- Direct Benefit Transfer: The subvention amount is disbursed directly into the beneficiary's bank account as a reimbursement, ensuring efficient and transparent transfer of funds.
- Strategic Incentive: Beyond financial relief, the scheme encourages the modernization and diversification of the Assam tea industry by incentivizing the shift towards Orthodox tea production.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The application undergoes a multi-stage verification process. Initially, the application is automatically routed to the concerned bank. The bank verifies the interest amount at 3%, borrower credentials, loan account classification (ensuring it's 'Standard'), and the interest servicing status. Upon successful verification by the bank, the application is approved on the portal. Following this, if claims are found to be in order, the Commissioner, Industries & Commerce Department, forwards these claims to the Finance Department. The Finance Department then processes the claim for online reimbursement, ensuring the Direct Benefit Transfer of the subsidy amount to the beneficiary's registered bank account.
Application Process
- 1
Register
Register on the dedicated portal by providing personal and unit details, including uploading supporting documents.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of this scheme?
The scheme aims to ensure the long-term financial sustainability of the tea industry in Assam and to incentivize manufacturers to move from Crush, Tear, Curl (CTC) tea to Orthodox tea production.
What is the maximum interest subvention I can claim?
You can claim an interest subvention of up to ₹20,00,000/- per annum per unit (garden).
How is the interest subvention disbursed?
The subvention is disbursed directly to the beneficiary's bank account through a Direct Benefit Transfer (DBT) mechanism as a reimbursement, typically after the completion of each financial year.
Which financial years are covered by this scheme?
The scheme is applicable for the financial years 2023-24, 2024-25, 2025-26, 2026-27, and 2027-28.
What kind of loans are eligible for this subvention?
Working Capital Loans taken from a Scheduled Commercial Bank or a Public Financial Institution, specifically for activities directly related to tea plantation or manufacturing, are eligible.
Can I apply if my loan account is classified as NPA?
No, the applicant must not have loan accounts declared as Non-Performing Asset as per Reserve Bank of India guidelines on the date of filing the claim.
Sources
Data on this page is compiled from official program and provider references.
