Central · Green Incentive
MSE Scheme for Promotion and Investment in Circular Economy
- Maximum benefit
- 25% of plant and machinery cost, up to ₹12.5 lakh
- Who can apply
- Micro, Small enterprises, for specific activities only
- Status
- Open; current term ends 31 March 2027
Is MSE-SPICE open? Key facts at a glance
MSE-SPICE (Central): 25% of plant and machinery cost, up to ₹12.5 lakh.
Last verified: 26 Oct 2026. How we check our information
| Status | Open. Confirm the status before you apply (see the note on this page). |
|---|---|
| Level | Central government scheme |
| Type of benefit | Credit-linked Capital Subsidy for Circular Economy Projects |
| Maximum benefit | 25% of plant and machinery cost, up to ₹12.5 lakh |
| Project cost range | Brownfield circular-economy projects financed by a bank term loan |
| Who can apply | Micro, Small enterprises (Manufacturing). Only for: Only for existing (brownfield) micro and small units expanding or upgrading a circular-economy project in one of 11 sectors: plastic, rubber, e-waste, municipal solid and liquid waste, compressed biogas, lithium-ion batteries, end-of-life vehicles, ferrous and non-ferrous scrap, solar panels, gypsum and toxic waste, and hazardous industrial waste and used oil. |
| Implementing agency | Ministry of MSME (RAMP); implemented by SIDBI through participating lending institutions |
| Where to apply | Green MSME portal (SIDBI) |
| Official notification | Read the notification (PDF) · notified 8 March 2024 |
| Current term ends | 31 March 2027 |
| Last verified | 26 Oct 2026 · How we check |
What is MSE-SPICE?
MSE-SPICE is a Ministry of MSME sub-scheme under RAMP, implemented by SIDBI, for micro and small enterprises adopting circular-economy practices such as recycling.
An existing unit upgrading or expanding a circular-economy project in one of 11 notified sectors can get a capital subsidy of 25% of the cost of new plant and machinery financed by a bank term loan, up to ₹12.5 lakh. The bank applies to SIDBI on the unit's behalf through the Green MSME portal.
The subsidy is held as an interest-free term deposit for three years while the unit stays in production.
Official notification (PDF) · notified 8 March 2024
What are the key benefits of MSE-SPICE?
- Capital subsidy of 25% on the cost of new plant and machinery for brownfield circular-economy projects, up to ₹12.5 lakh (Guidelines §5.I; SIDBI Circular 40/2023-24).
- Covers 11 sectors, including plastic, rubber, e-waste, lithium-ion batteries, end-of-life vehicles and scrap metal (SIDBI circular Appendix).
- A unit that has used part of the cap can claim the balance within the scheme period (Guidelines §9 XXIII).
What could a unit get under MSE-SPICE?
The ceiling the scheme sets. What a particular unit receives depends on its project cost, location and the conditions on this page, so no rupee figure is worked out here.
Up to the scheme’s limits: 25% of plant and machinery cost, up to ₹12.5 lakh
Illustrative only: this is the scheme’s maximum, not an estimate for your unit. Source: Guidelines for MSE SPICE (Ministry of MSME), §§4, 5, 8, 9; SIDBI GCFV Circular No. 40/2023-2024 (Ref. L002316415), 8 March 2024; PIB, 5 August 2024 (Rajya Sabha reply); RAMP portal MSE-SPICE page (read 20 Oct 2026).
Who can apply for MSE-SPICE?
- Micro and small enterprises registered on Udyam; brownfield projects only.
- Units must comply with Extended Producer Responsibility and waste-recycling targets (SIDBI FAQ).
- A unit can take either MSE-SPICE or MSE-GIFT for a project, not both, and no other circular-economy subsidy from the Centre or a State.
Eligible business types
MSME categories covered
Eligible industries
How do I apply for MSE-SPICE?
- Apply to a participating bank or NBFC for a term loan of at least three years. The lender checks the project against the Technical Working Group criteria, disburses the loan and recommends the subsidy to SIDBI on the Green MSME portal. A unit cannot apply on the portal itself.
- SIDBI releases the subsidy to the lender, which keeps it as an interest-free term deposit for three years.
Apply at: Green MSME portal (SIDBI)
Which documents are needed for MSE-SPICE?
- Udyam Registration
- Bank term loan sanction letter and disbursement details
- Invoices and specifications of the new plant and machinery
- Audited balance sheets for the last three years
- Project details: installed capacity, products, cost and funding
- EPR or waste-recycling compliance details
Can MSE-SPICE be combined with other schemes?
This scheme can be combined with the following for higher total benefits:
Why are MSE-SPICE applications rejected?
- Greenfield (new) unit
- Second-hand or fabricated machinery
- Machinery bought before the loan sanction
- Term loan shorter than three years including moratorium
- Same project already subsidised under MSE-GIFT or another circular-economy subsidy
- Account turns NPA
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about MSE-SPICE
- Is MSE-SPICE open?
- It is listed as open, but confirm the status before you apply: MSE-SPICE runs until 31 March 2027. SIDBI's circular sets ₹50 lakh as the maximum admissible project cost but admits larger projects, with the subsidy capped at ₹12.5 lakh; the RAMP portal mentions projects up to ₹2 crore. Ask your bank which project-cost limit it applies. Status last verified: 26 Oct 2026.
- Who can apply for MSE-SPICE?
- Micro, Small enterprises (Manufacturing). Only for: Only for existing (brownfield) micro and small units expanding or upgrading a circular-economy project in one of 11 sectors: plastic, rubber, e-waste, municipal solid and liquid waste, compressed biogas, lithium-ion batteries, end-of-life vehicles, ferrous and non-ferrous scrap, solar panels, gypsum and toxic waste, and hazardous industrial waste and used oil.
- What is the maximum benefit under MSE-SPICE?
- 25% of plant and machinery cost, up to ₹12.5 lakh.
- How do I apply for MSE-SPICE?
- 1. Apply to a participating bank or NBFC for a term loan of at least three years. The lender checks the project against the Technical Working Group criteria, disburses the loan and recommends the subsidy to SIDBI on the Green MSME portal. A unit cannot apply on the portal itself. 2. SIDBI releases the subsidy to the lender, which keeps it as an interest-free term deposit for three years. Apply at: Green MSME portal (SIDBI).
Guides on MSE-SPICE
Related schemes
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