Scheme for Promotion and Investment in Circular Economy
Empowering MSEs to Build a Greener India — One Sustainable Investment at a Time
Scheme for Promotion and Investment in Circular Economy
The Scheme for Promotion and Investment in Circular Economy is a government-backed initiative to encourage Micro and Small Enterprises (MSEs) across India to adopt sustainable practices that prioritize reuse, recycling, and waste reduction. With capital subsidies linked to term loans, the scheme is designed to catalyze green transitions in the manufacturing sector and boost India’s contribution to the global circular economy.
At DharmaSetu Goldschmidt Advisory, we help MSEs decode the regulatory framework, align with the eligibility norms, and secure capital-linked subsidies to implement eco-efficient technologies that reduce both waste and operational costs.
Scheme Objectives
- Promote environmentally sustainable practices among Indian manufacturers
- Support adoption of waste-reducing and recycling technologies
- Facilitate the transition to circular production models
- Align MSEs with ESG goals, green financing, and climate commitments
Eligible Beneficiaries
- Existing Micro and Small Enterprises (MSEs) operating in manufacturing
- Industries engaged in waste management, reuse, or upcycling
- Businesses planning to shift to low-waste, high-efficiency production models
Eligible Activities & Use Cases
- Setting up waste recycling or upcycling units
- Investment in eco-friendly manufacturing technologies
- Procurement of machinery that supports circular economy processes:
• Waste separation and reprocessing
• Energy recovery from waste
• Water and material conservation systems - Green factory retrofitting or sustainable process upgrades
Eligible Investment Components
- New Machinery and Equipment purchases (up to ₹50 Lakhs)
- Projects must be backed by a term loan through a recognized financial institution
Applicable Benefits
- 25% Capital Subsidy on eligible project cost
- Maximum Benefit: Up to ₹12.5 Lakhs
- Credit-Linked—disbursed after verification of capital investment through loan
- Additional benefits possible when aligned with other green financing or MSME schemes
Our Circular Economy Advisory Services Include
- Project structuring and eligibility validation
- Guidance on suitable machinery & vendors for circular operations
- DPR (Detailed Project Report) preparation
- Coordination with lending institutions for term loan linkage
- Capital subsidy application filing and departmental advisory
- ESG integration and carbon-reduction advisory
Why Partner with DharmaSetu Goldschmidt Advisory?
- In-house expertise on waste management, green manufacturing, and industrial sustainability
- Strong track record of enabling credit-linked subsidy approvals
- Trusted by MSMEs across agro-processing, packaging, plastic recycling, and textile upcycling
- Strategic ESG alignment that future-proofs your operations and attracts responsible capital
Frequently Asked Questions
We offer end-to-end support — from eligibility checks and project documentation to application filing and departmental coordination — ensuring maximum benefits with minimal hassle.
We provide consultancy for a wide range of government subsidies — including those for agriculture, manufacturing, MSMEs, technology upgrades, clean energy, exports, and infrastructure development.
Yes, we serve clients nationwide. We’ve successfully helped over 750+ enterprises across sectors and geographies secure government incentives and capital-linked support.
Timelines vary based on the type of subsidy and department workload. However, our team actively tracks and manages your application to ensure accelerated clearance and faster disbursal.
Requirements vary by scheme, but usually include:
- Business registration documents
- Financial statements and projections
- Project reports / DPRs
- Environmental or utility clearances (if applicable)
We provide you with a customized checklist and assist at every stage.