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The STHAPAN Scheme aims to promote capital investments in the MSME sector by assisting Greenfield Manufacturing units. It provides financial assistance by way of term loan for plant & machinery, purchase of land, construction of factory building, purchase of equipment, Misc. fixed assets, installation of rooftop solar projects, etc. under the product-linked incentive schemes. This scheme is valid up to 31st March 2022 and may be extended on a need basis.

Eligibility Criteria:

  • The main objective of STHAPAN is to provide financial assistance to Greenfield units for setting up new units.
  • The Promoters of new entity should have 5 years of experience in the business. 
List of sectors under STHAPAN Scheme
Automobiles and Auto Components (excluding dealership but including general Engg.) Specialty Steel
White Goods (including ACs and LEDs) Textile Products: MMF Segment and technical textiles
High-efficiency solar PV modules Advanced Chemistry Cell (ACC) Battery
Drugs and Pharmaceuticals(including ingredients) Food Products
EV Charging Stations Medical devices
Healthcare Centers (including Hospitals, nursing homes, and diagnostic centers) Mobile Phone and accessories
Agri allied sectors Renewable sectors (including rooftop solar
Aerospace and defense Garmenting
Paper & Paper Products Rubber and Rubber Products
Plastic & Plastic products (excluding single-use plastic Chemical and Chemical Products
  • MSMEs projects other than the above-mentioned sectors may also be allowed to be covered under the scheme subject to in-principle approval from RO In-charge.  

Quantum of Assistance:

  • Term Loan up to Rs.1500 Lakh per unit/ borrower, subject to a maximum of 75% of the project cost.
  • Higher Term loan for plant & machinery, purchase of land and construction of the building, etc. up to Rs.2000 Lakh to one unit shall be subject in-principle approval as per Loan Policy.
  • Promoters have to contribute a minimum of 25% of the project cost.

Interest rate and Repayment:

  • Interest rate will be 6.00 % to 7.30 % p.a for the first year. From the next years, it will be as per internal rating.
  • Repayment up to 7 years including moratorium up to 2 Years.


This scheme will boost capital investment in Greenfield manufacturing units.  Attractive rate of interest, term loan up to Rs. 2000.00 lakhs and quick sanctions are the main benefits under the scheme. MSME setting up their new units in identified sectors are benefited under this scheme.

If you need further clarification/query, you can contact us on 9825373707 or mail at info@djshahca.com or officeidk@gmail.com

M/s Dinesh J. Shah & Associates is a practicing CA firm in Ahmedabad in the field of Taxation, GST, Audit, Project Finance, and Government Subsidy for more than 20 years.