The Industrial Infrastructure Upgradation Scheme, recently announced by Department of Industrial Policy & Promotion, under the Ministry of Commerce & Industry, Govt. of India, envisages providing central assistance by way of one time grant-in-aid (not equity) to the Special Purpose Vehicle (SPV) formed by the cluster association for development of the infrastructure so as to make industries in the clusters/ industrial locations globally competitive. The assistance will be restricted to 75% of the project cost subject to a ceiling of Rs. 50 crore. The remaining 25% will be financed by other stakeholders of the respective cluster/location with a minimum industry contribution of 15% of total project cost. Administrative expenses will be restricted to 3% of the central assistance in the project.
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