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Write a short note on Subsidy Consultancy Services.
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Solution:

Subsidy Consultancy Services:

  • Small entrepreneurs proposing to set up the rural, cottage, tiny scale units, or to expand/diversify/modernize their existing units can get consultancy services at a low cost from the technical consultancy organ is at ions (TCO) sponsored by All India and State level financial and promotional institutions and banks.

  • If an entrepreneur is unable to take effective steps to set up the project within one year from the date of completion of consultancy assignments he will not be entitled to prevent the use of the report in any form or manner by the TCA or other entrepreneurs.

  • They have to pay only 20% of the fees charged by a TCO for assignments such as preparation of feasibility studies, project reports, market studies, pre-investment studies, diagnostic studies, and special studies, and applications for seeking financial assistance from financial institutions' technical assistance, etc.

  • The entire balance of 18% or Rs. 5,000 whichever is lower is subsidized by IFCI in the case of assignments relating to the use of biogas or renewable/alternative sources of energy.

  • For units identified or assignments covering physically handicapped or scheduled caste/tribe entrepreneurs, 100 % of the fees of the TCO for the assignment or Rs. 6,000 whichever is lower is subsidized.

  • An entrepreneur who has already set up a project at one place and wishes to set up an entirely different project at another place may be considered eligible for a subsidy for the second project also.

  • In any case, the subsidy will not be made available to the same entrepreneur for more than two projects.

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