Category guide

Capital Subsidies in India

Direct capital investment subsidies - a percentage of eligible fixed-capital investment reimbursed by central or state government, often the single largest line item in an incentive package.

Schemes tracked

Currently active

Nodal authorities

9 Sept 2026

Last updated

Schemes

Capital Subsidies schemes

Each scheme page gives you the key facts publicly; full application detail unlocks with credits.

Capital Subsidy

National Investment Policy for Urea-2026 for Atmanirbhar Bharat (NIPU-2026)

The National Investment Policy for Urea-2026 (NIPU-2026) aims to facilitate fresh investments in India's urea sector. It provides a structured floor and ceiling price mechanism based on delivered gas prices to ensure a minimum return on equity for Greenfield, Brownfield/Expansion, and Revival projects. Eligible units receive price-support subsidies for a period of 8 years from the start of commercial production, provided production commences within 5 years of the policy notification.

Incentive

Greenfield/Revival: Floor USD 281/MT, Ceiling USD 296/MT (at gas ≤ USD 6.5/MMBtu), recognized at 95% IPP; Expansion/Brownfield: Floor USD 263/MT, Ceiling USD 276/MT (at gas ≤ USD 6.5/MMBtu), recognized at 90% IPP; 8-year subsidy duration

Department of Fertilizers, Ministry of Chemicals & Fertilizers, Government of IndiaActive

Capital Subsidy

Bharat Audyogik Vikas Yojna (BHAVYA) Scheme

Bharat Audyogik Vikas Yojna (BHAVYA) is a Central Sector Scheme by DPIIT to develop 100 world-class, investment-ready industrial parks across India with an outlay of ₹33,660 crore over 6 years (FY 2026-27 to 2031-32). The scheme provides financial assistance of up to ₹1 crore per acre (or ₹50 lakh per acre for private developer-led projects) in the form of equity contribution to project-specific SPVs.

Incentive

Equity contribution up to ₹1 crore per acre for general projects; Equity contribution up to ₹50 lakh per acre or 50% of infrastructure cost for private developer-led projects; External infrastructure funding capped at 25% of external works cost

Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India· Up to ₹33660 CrActive

Capital Subsidy

Semicon India Programme 2.0

Semicon 2.0 is a landmark national initiative by the Government of India with a massive fiscal outlay of ₹1,27,500 crore. It aims to build a robust and resilient semiconductor and display ecosystem in India by offering up to 40% capital subsidy on a pari-passu basis for setting up silicon fabs, and up to 35% for compound semiconductor fabs and advanced packaging (ATMP/OSAT) units.

Incentive

Capital subsidy 40% of Capex for CMOS Silicon Fabs; Capital subsidy 35% of Capex for other Fabs (compound, display, discrete); Capital subsidy 35% of Capex for Advanced Packaging; Capital subsidy 25% of Capex for Conventional Packaging; DLI support (Risk Capital, EDA tools, and deployment incentives for tape-outs)

Ministry of Electronics & Information Technology (MeitY), Government of India· Up to ₹127500 CrActive

Capital Subsidy

Modified UDAN Scheme

Modified UDAN is a 10-year central scheme (FY 2026-27 to FY 2035-36) with an outlay of ₹28,840 crore aimed at strengthening India's regional aviation network. It provides viability gap funding (VGF) for airlines for up to 5 years, O&M support for up to 3 years, and funds the development of 100 airports and 200 modern helipads.

Incentive

Viability Gap Funding for up to 5 years (tapered from year 3); O&M support up to ₹306 Lakhs/year per airport and ₹90 Lakhs/year per heliport/water aerodrome (for 3 years); 100% funding for 100 airports and 200 helipads (₹1,500 Lakhs per helipad)

Ministry of Civil Aviation, Government of India· Up to ₹28840 CrActive

Capital Subsidy

Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

The Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme provides financial assistance for setting up world-class infrastructure and Common Facility Centres (CFCs) to attract investments in the ESDM sector. It offers grant-in-aid of up to 50% of project cost for EMC projects (capped at ₹35,000 lakhs) and up to 75% for CFCs (capped at ₹7,500 lakhs). The scheme targets State Governments, public sector units, and industrial corridor corporations, requiring a committed anchor unit with significant investment.

Incentive

Grant-in-aid up to 50% of project cost for EMC projects (ceiling of ₹7,000 lakhs per 100 acres, max ₹35,000 lakhs per project); Grant-in-aid up to 75% of project cost for CFCs (ceiling of ₹7,500 lakhs per project)

Ministry of Electronics and Information Technology (MeitY), Government of India· Up to ₹350 CrActive

Capital Subsidy

PM GatiShakti - National Master Plan 2021

PM GatiShakti is a transformative National Master Plan for multi-modal connectivity integrating 16 ministries to coordinate infrastructure planning. With an investment outlay of Rs. 100 lakh crore, it targets holistic development across key economic zones, including industrial corridors, textile parks, pharma clusters, and defense corridors by 2024-25.

Incentive

Financing of common facilities worth Rs. 2,000 Lakhs (Rs. 20 Crore) per pharma cluster; Plug-and-play facilities for 10 mega textile parks and 23 Electronic Manufacturing Clusters; Infrastructure development across 11 industrial corridors, 2 defense corridors, 197 mega food parks, and 202 fishing clusters.

Ministry of Commerce & Industry, Government of India· Up to ₹10000000 CrActive

See all schemes — free

Create a free account to unlock the remaining 9 schemes in this category and full detail on every one.

Create free account Log in

Compare at a glance

Compare in full

Scheme	Incentive type	Rate	Min. investment	Deadline
National Investment Policy for Urea-2026 for Atmanirbhar Bharat (NIPU-2026)	Urea price-support subsidy (floor and ceiling price protection based on gas cost and IPP)	Greenfield/Revival: Floor USD 281/MT, Ceiling USD 296/MT (at gas ≤ USD 6.5/MMBtu), recognized at 95% IPP; Expansion/Brownfield: Floor USD 263/MT, Ceiling USD 276/MT (at gas ≤ USD 6.5/MMBtu), recognized at 90% IPP; 8-year subsidy duration	₹9000 Cr	Upcoming
Bharat Audyogik Vikas Yojna (BHAVYA) Scheme	Central equity contribution and infrastructure funding for industrial park development	Equity contribution up to ₹1 crore per acre for general projects; Equity contribution up to ₹50 lakh per acre or 50% of infrastructure cost for private developer-led projects; External infrastructure funding capped at 25% of external works cost	₹10 Cr	Open
Semicon India Programme 2.0	Composite central package (pari-passu capital subsidy + design incentives + ecosystem support)	Capital subsidy 40% of Capex for CMOS Silicon Fabs; Capital subsidy 35% of Capex for other Fabs (compound, display, discrete); Capital subsidy 35% of Capex for Advanced Packaging; Capital subsidy 25% of Capex for Conventional Packaging; DLI support (Risk Capital, EDA tools, and deployment incentives for tape-outs)	—	Open
Modified UDAN Scheme	Viability Gap Funding (VGF) & Infrastructure Development Subsidy	Viability Gap Funding for up to 5 years (tapered from year 3); O&M support up to ₹306 Lakhs/year per airport and ₹90 Lakhs/year per heliport/water aerodrome (for 3 years); 100% funding for 100 airports and 200 helipads (₹1,500 Lakhs per helipad)	—	Open
Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme	Capital Grant-in-Aid for Infrastructure and Common Facilities	Grant-in-aid up to 50% of project cost for EMC projects (ceiling of ₹7,000 lakhs per 100 acres, max ₹35,000 lakhs per project); Grant-in-aid up to 75% of project cost for CFCs (ceiling of ₹7,500 lakhs per project)	₹150 Cr	Upcoming

The full comparison covers 15+ parameters including SGST, stamp duty and power tariff. Open the full comparison →

Compare schemes side by side — free

Create a free account to compare 15+ parameters — SGST, stamp duty, power tariff and more — across every scheme.

Create free account Log in