MSE Scheme for Promotion and Investment in Circular Economy (MSE-SPICE)

About the Programme

MSE Scheme for Promotion and Investment in Circular Economy (MSE-SPICE) promotes circular-economy practices among Micro and Small Enterprises through resource efficiency, recycling, reuse, waste reduction and sustainable production systems. It encourages MSEs to comply with Extended Producer Responsibility and waste-recycling requirements and supports investment in circular solutions.

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green.msme.gov.in

Benefits

• Credit-linked capital subsidy of 25% of the eligible cost of plant and machinery.
• Maximum subsidy of ₹12.50 lakh.
• Support for eligible brownfield circular-economy projects.
• Assistance for waste-management and recycling systems.
• Support for resource-efficient technologies and cleaner production.
• Encouragement for sustainable manufacturing practices.
• Awareness generation, capacity building and consultancy support.
• Helps MSEs reduce waste, environmental impact, resource consumption and operating costs.

Eligibility

• Micro and Small Enterprises registered on the Udyam Registration Portal.
• Only brownfield projects, involving the expansion or upgradation of existing units, are eligible.
• Greenfield projects are not eligible.
• The enterprise should comply with applicable Extended Producer Responsibility and waste-recycling requirements.
• The investment should relate to circular-economy activities within the identified sectors or waste streams covered by the scheme.
• The maximum admissible project cost for calculating the subsidy is ₹50 lakh, with a 25% subsidy on plant and machinery. Projects costing more than ₹50 lakh may be considered, but the subsidy remains capped at ₹12.50 lakh.

How to Apply

1. Obtain or maintain a valid Udyam Registration.
2. Identify an eligible brownfield circular-economy project.
3. Approach a participating bank or Primary Lending Institution for a loan to finance the eligible investment.
4. The institution conducts due diligence and checks whether the project or technology meets the scheme criteria.
5. After loan sanction and disbursement, the institution verifies the acquisition and installation of plant and machinery through a site visit.
6. The lending institution submits and recommends the subsidy proposal to SIDBI through the online system.
7. SIDBI examines and sanctions the eligible subsidy.
8. The subsidy is released to the lending institution and adjusted in accordance with the scheme guidelines.

Documents

• Application form prescribed under the MSE-SPICE guidelines.
• Factory address and location details, including whether the unit is situated in a backward or non-backward area.
• Date of incorporation or commencement of production.
• Details of products, subsector and installed capacity.
• Audited financial statements and past performance for the preceding three years.
• Bank/FI-approved project cost and sources of funding.
• Project-completion timeframe.
• Details of expected incremental benefits from the project.
• Detailed list of eligible plant and machinery, including specifications, rates, quantities and total value.
• Loan sanction letter and disbursement details.
• Invoices relating to eligible plant and machinery.
• Any other document required by SIDBI during examination of the proposal.

FAQ

Beneficiary:

As mentioned above

Benefits:

Support for resource-efficient technologies and cleaner production.