Capital Goods Scheme
The Capital Goods Scheme is a central-sector initiative run by the Ministry of Heavy Industries , Government of India. The scheme was launched to strengthen and modernise the Indian capital goods sector, promote indigenisation, technology development, and global competitiveness. The purpose of the scheme is to support creation of infrastructure for capital goods manufacturing , technology acquisition by units, and ecosystem development. For MSMEs and start‐ups operating in the capital goods sector , the scheme offers assistance so you can upgrade technology, reduce costs, and access higher value markets.
Key Features
- Support for CEFCs and shared infrastructure: Under the scheme, clusters or industry associations can establish engineering facility centres that provide shared manufacturing services (e.g., tool manufacturing, machine-assembly, special testing) which many small units cannot afford individually. This helps MSMEs access high-end machinery via shared facilities.
- Assistance for technology acquisition/assimilation: Eligible units can receive grant support to acquire new technologies (equipment, know-how) or adapt them in-house, improving their productivity, capability and competitiveness. This helps you upgrade from older machinery to modern standards.
- Support for testing/certification infrastructure: The scheme includes setting up or upgrading testing labs and certification centres so that capital goods can meet global standards and reduce imports of test services. For you, this means better access to quality assurance and export readiness
- Grants for R&D/innovation/mother-technologies: The scheme encourages development of “mother manufacturing technologies” (basic technologies that underpin many types of capital goods) via research institutions and industry collaboration. This long-term support creates a stronger ecosystem for your business.
- High subsidy levels & broad eligibility: In certain components, central assistance is available up to 80% of project cost for infrastructure setups like CEFCs. MSME units, industry associations, consortiums, R&D labs can apply.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Capital goods manufacturers registered in India.
- MSME and Non-MSME units in the capital goods sector.
- Industry associations and technology development organizations.
- PSUs, R&D institutions and academic organizations engaged in capital goods R&D.
- SPVs formed for Common Facility Centres or Testing Centres.
- Organizations engaged in developing specialized machinery or industrial equipment.
Who Cannot Apply:
- Entities not engaged in capital goods manufacturing or related activities.
- Unregistered enterprises lacking statutory compliance.
- Units with unresolved fraud, misuse of government funds, or non-performance history.
- Organizations seeking support for non-capital goods production.
- Entities proposing projects unrelated to approved scheme components.
Documents Required
- Company registration documents
- Project proposal and DPR
- Financial statements and cash flow projections
- Machinery or technology details
- Implementation plan and timelines
- ID and address proof of authorized signatories
- Bank account details
- Compliance declarations
- For SPVs: MoA, shareholding pattern and governance structure
Application Process for the Scheme
Option 1: Apply with Bullit (Recommended)
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Option 2: Apply Through DPIIT (Official Process)
- Identify relevant components such as technology development, CFCs, testing centres or skilling.
- Prepare a detailed project proposal along with financials and technical specifications.
- Submit the proposal to DPIIT or the designated programme management agency.
- Undergo technical and financial appraisal by expert committees.
- Receive approval and execute the project as per sanctioned norms.
- Submit utilisation certificates and claim reimbursements as per scheme guidelines.