Machinery Subsidy Under TUS: 50% or ₹5 Lakh, Whichever Is Lower
How the Machinery Subsidy Works
When you install advanced plant & machinery as part of a technology upgrade, TUS reimburses 50% of that installation cost, capped at ₹5 lakh — whichever figure is lower. On smaller purchases (up to ₹10 lakh), the 50% math applies directly; above that, the ₹5 lakh ceiling kicks in.
| Machinery Cost | Subsidy You Get |
|---|---|
| ₹4 lakh | ₹2 lakh (50%) |
| ₹10 lakh | ₹5 lakh (50%, hits the cap) |
| ₹20 lakh | ₹5 lakh (capped, not 50%) |
What Counts as "Installation Cost"
The machine’s purchase price plus reasonable, invoiced installation/commissioning charges. Freight and basic setup are usually included; unrelated civil work or building renovation is not.
Does the subsidy cover second-hand machinery?
The scheme’s language centers on "advanced plant & machinery" for technology upgradation — used or reconditioned equipment is generally not the intent, and is unlikely to be accepted; confirm with the portal before buying second-hand.
Can I claim the machinery subsidy without a bank loan, if I paid cash?
Yes — the capital subsidy applies to the purchase itself, via banking-channel payment and invoice, regardless of whether you financed it with a loan or your own funds. The separate interest subsidy, obviously, only applies if there’s a loan.
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Official portal: diupmsme.upsdc.gov.in Last reviewed: Aug 2026
This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.