For setting up new small scale units or expansion, modernisation, diversification etc. of existing units and for all activities eligible for assistance under the scheme including professional practice/consultancy venture and service sector units such as tourism related activities / hospitals / nursing homes / polyclinics / hotels / restaurants / marketing and industrial infrastructural projects.

All forms of organisations in the small scale sector (i.e.,proprietary, partnership, company, co-operative society) etc.

For infrastructure development - All forms of organisations such as public/ pvt ltd. cos., partnerships, sole proprietary, municipalities, SIDCs.

Scheme operated through SFCs/SIDCs/banks.

Cost of project in respect of service sector units not to exceed Rs.200 million for banks and as prescribed by IDBI/SIDBI for SFCs/SIDCs