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Machinery Subsidy Under TUS: 50% or ₹5 Lakh, Whichever Is Lower

Up to 50% of CostCap: ₹5 LakhAdvanced Plant & MachineryLast reviewed: Aug 2026

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 CostSubsidy 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.

This is the same subsidy the pillar TUS page calls the scheme’s easiest, smallest-ticket claim — garment, packaging and printing units routinely claim ₹4–5 lakh on machines in the ₹8–10 lakh range.
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 Source
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.