Subsidy for Orthodox & Speciality Tea Unit for Plant & Machinery under the Assam Tea Industries Special Incentives Scheme
By Finance (Institutional Finance) Department, Government of Assam
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Quick Answer
A subsidy for tea manufacturing units in Assam covering 25% of plant and machinery costs, up to ₹30 lakh, for orthodox and speciality tea production.
About this subsidy
The "Subsidy for Orthodox & Speciality Tea Unit for Plant & Machinery" is a vital component of the comprehensive "Assam Tea Industries Special Incentives Scheme (ATISIS)," which was initiated by the Finance (Institutional Finance) Department, Government of Assam, in 2020. This overarching scheme is strategically designed to bolster the long-term financial viability and promote the modernization of Assam's iconic tea industry. A primary goal is to encourage a significant shift among manufacturers from the traditional Crush, Tear, Curl (CTC) tea production method towards the more value-added Orthodox and Speciality tea varieties. This move is crucial for enhancing the competitiveness and premium positioning of Assam tea in global markets.
The ATISIS scheme, including this specific plant and machinery subsidy, is jointly implemented by the Finance Department and the Industries & Commerce Department of the Government of Assam. Its operational reach extends through various implementing agencies at the ground level, notably commercial banks and District Industries & Commerce Centres (DICCs), ensuring broad accessibility and efficient disbursal. The entire application process for this subsidy has been streamlined through a dedicated online portal, emphasizing ease of access for tea producers. A Direct Benefit Transfer (DBT) mechanism ensures that eligible reimbursements are directly credited to the beneficiaries' bank accounts, fostering transparency and reducing delays. This incentive aims to drive capital investment into advanced processing technologies, thereby improving product quality, increasing export potential, and securing the economic future of the thousands of livelihoods dependent on the Assam tea sector.
Eligibility
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Subsidy providers
Benefits & Funding
- Amount
- Up to ₹30L
What You Get
The scheme offers a significant financial incentive in the form of a reimbursement. Eligible tea manufacturing units can claim 25% of the total cost of new plant and machinery purchased for the production of Orthodox and Speciality teas. This reimbursement is capped at a maximum of ₹30,00,000/- (Rupees Thirty Lakhs), ensuring substantial support while maintaining fiscal prudence. The benefit is disbursed directly to the beneficiary's bank account via Direct Benefit Transfer (DBT) once the claim is processed and verified. To be eligible, units must have commenced production on or after April 1, 2020, and before March 31, 2028. Claims must be submitted within 12 months from the start of commercial manufacturing activities. A key condition post-selection is that the manufacturing unit must not sell the subsidized machinery for a minimum period of five years from the commencement of manufacturing, ensuring the long-term impact of the investment. Beyond the direct financial support, the scheme indirectly facilitates access to modern technology and enhances operational efficiency, contributing to the overall growth and sustainability of the tea industry.
- Disbursement
- Reimbursement
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
Applications are reviewed by the implementing agencies, including the Finance Department, Industries & Commerce Department, and District Industries & Commerce Centres, based on the submitted documentation and eligibility criteria. Applicants are notified of their application status through the online portal and SMS alerts. The process involves stages of verification, culminating in the approval and disbursement of funds to eligible units.
Application Process
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New User Registration
Visit the dedicated portal, fill in basic details, create credentials, verify mobile number, complete captcha, and submit registration form.
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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 subsidy?
The main objective is to incentivize tea manufacturers in Assam to transition from Crush, Tear, Curl (CTC) tea production to Orthodox and Speciality tea production by subsidizing the cost of necessary plant and machinery. This aims to enhance the financial sustainability and competitiveness of the Assam tea industry.
Who is eligible to apply for this subsidy?
Any tea plantation or tea manufacturing unit located entirely within Assam, producing or expanding capacity for Orthodox or Speciality tea (excluding CTC), and having started production on or after April 1, 2020, and before March 31, 2028, is eligible. The machinery purchased must be new.
What is the maximum financial benefit I can receive?
The scheme provides a reimbursement of 25% of the cost of eligible new plant and machinery. The maximum amount an applicant can receive is ₹30,00,000/- (Rupees Thirty Lakhs) or 25% of the actual cost, whichever is less.
How will the subsidy amount be disbursed?
The subsidy amount will be disbursed directly to the beneficiary's registered bank account through the Direct Benefit Transfer (DBT) mechanism, ensuring a transparent and efficient process. You will receive SMS alerts regarding the fund disbursement.
Is there a deadline to apply for this subsidy?
While there isn't a single fixed application deadline, the scheme is open for units that started production on or after April 1, 2020, and before March 31, 2028. Claims must be submitted within 12 months of the start of commercial manufacturing activities. Applications are accepted online on a rolling basis.
Can I sell the machinery after receiving the subsidy?
No, there is a post-selection condition that the manufacturing unit shall not sell the subsidized machinery before the expiry of at least 5 years from the start of commercial manufacturing. This condition ensures the long-term benefit and utilization of the subsidized assets.
What kind of documentation is typically required for the application?
While specific requirements will be detailed on the portal, generally, you would need to upload documents proving your unit's location, type of tea production, production start date, details of the new machinery purchased, cost invoices, and a declaration that no similar subsidy has been claimed.
Sources
Data on this page is compiled from official program and provider references.
