Can an MSME Claim Capital Subsidy on Replacement of Old Machinery?
Short answer: Sometimes, but not always. Many capital subsidy schemes are designed for new capacity or technology upgradation, and some do not cover plain replacement of old machinery. Whether you can claim depends on the exact scheme guidelines, so read the eligibility rules and confirm with the implementing agency before you buy. Introduction An old machine breaks down often, and you want to replace it with a newer one. Naturally, you ask whether you can claim a capital subsidy on the new machine, just like a new unit would. The answer is not the same for every scheme. Some schemes support modernisation and technology upgradation, while others focus on setting up new units or adding new capacity. Whether a replacement qualifies depends on how the scheme defines eligible investment. At Sharda Associates , we prepare CA-certified project reports and CMA data, and we help MSMEs with bank loan documentation. In this guide, we explain how subsidy schemes usually treat replacement...
