ORDER

Sub: Clarification of interest subsidy clause.

The Rajasthan Investment Promotion Policy Scheme 2003 was issued vide order of even no. dated 28.7.2003. Clause 7(ii) of the Scheme reads as :

“Subject to clause (i), interest subsidy shall be equal to five percent of the documented interest rate, however, an additional interest subsidy of one percent shall be available to the Schedule Caste /Schedule Tribe entrepreneurs. In case the documented rate of interest is less than 5% or less than 6% in case of SC/ST entrepreneurs, the entitlement of the interest subsidy will be limited to the documented rate of interest and the amount actually paid as interest but shall not include penal interest.”

The intention of the Government is to provide 5% interest subsidy. To avoid any confusion in this regard, it would be appropriate that the clause 7(ii) of the order dated 28.7.2003 is amended and may now be read as :

“Subject to clause (i), interest subsidy shall be 5% (percentage points). An additional interest subsidy of one percent shall be available to Schedule Caste /Schedule Tribe entrepreneurs. In case the documented rate of interest is less than 5% or less than 6% in case of SC/ST entrepreneurs, the entitlement of the interest subsidy will be limited to the documented rate of interest and the amount actually paid as interest but shall not include penal interest.”

(K.C. Gupta)

OSD, Finance (Tax)