Claiming a government subsidy cleanly: eligibility, EFCI, documentation and timing

Most subsidy applications don’t fail on eligibility — they fail on process. Here is how to capture central and state government incentives cleanly, whether under MP’s IPP, the MSME policy, export and EV schemes, or central programmes.

1. Map eligibility early

Match your project to the right scheme before you commit capital. Location, sector and investment size all move the benefit, and some schemes can be combined while others cannot.

2. Get EFCI right

Eligible Fixed Capital Investment is the base most incentives are calculated on. Know what qualifies — plant and machinery, factory buildings, eligible in-house R&D — and what is excluded, such as old machinery, land and certain equipment.

3. Time the claim

Many benefits must be claimed at a specific stage — before capitalisation, or within a defined window after commercial production begins. Miss the window and the benefit simply lapses.

4. Build a defensible file

Applications are scrutinised. Clean books, correct classifications and complete documentation are what get a claim through without repeated queries and delays.

5. Follow it through

Sanction is not disbursement. Someone has to manage the liaison and follow-up until the money actually lands in the account.

This is exactly what our Subsidies & Government Incentives practice does, end to end. See the service →