TUS vs Capital Subsidy: What's the Difference?
| TUS | Capital Subsidy | |
|---|---|---|
| Who it's for | Existing units upgrading technology | New units or expansion/diversification |
| What it covers | Machinery tied to quality/environment/energy/testing upgrades specifically | Broader plant & machinery investment |
| Subsidy rate | 50% of machinery cost, capped at โน5 lakh | 10โ25% of investment, by category and district zone |
| Typical ticket size | Small โ machines in the โน5โ15 lakh range | Large โ lakhs to crores |
| Extra benefit | Separate interest subsidy on the machinery loan too | None built into this scheme |
Which to Pick
These aren't really competing โ they're for different situations. If you're running a unit and buying one or two new machines for quality/efficiency reasons, TUS is the simpler, faster claim. If you're setting up a new unit or making a large plant & machinery investment as part of an expansion, Capital Subsidy is the relevant scheme โ and its investment ceiling is much higher.
Can I claim both TUS and Capital Subsidy on the same machinery?
Generally no โ both are subsidies on the same kind of investment (machinery), so stacking them on one purchase isn't the intent. Confirm with your DIC which one applies better to your specific case.
Which is faster to get approved?
TUS's smaller ticket size and narrower documentation generally moves faster; Capital Subsidy's larger claims typically involve more verification given the bigger amounts.
Not sure which subsidy fits your investment?
ClaimDesk (a NorthStar Advisors brand) handles the paperwork end-to-end. The first conversation is completely free.
MSMEUP.com is independent information & tools โ free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional โ MSMEUP's guides and tools work the same with or without it.
Official portal: msme.up.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.