The Government of India is operating Credit Linked Capital Subsidy Scheme to facilitate the upgrading of technology in SSI units in respect of 48 specified products / sub-sectors. Under this scheme, 15% capital subsidy is granted for induction of of proven technologies approved under the Scheme.

New or existing SME units - including units in cotton ginning and processing sector - are eligible 5% / 4% interest reimbursement and the interest actually charged. Additional option available for Capital subsidy in lieu of interest rebate for selected sectors.

More info visit Website of Technology Upgradation Fund Scheme: www.txindia.com

The Govt. of Tamil Nadu is offering Mega Project Subsidy for the projects with investment in Fixed Assets above 5.00 crores and upto 200 crores as back ended ranging between 30.00 lakhs to 100.00 lakhs depending upton the investment and direct employment to the workers.

More info visit Website of Mega Project : www.tn.gov.in

The Ministry of Food Processing, Government of India with a view to accelerate the growth in this sector is providing grants for setting up of food processing units (including meat and fish processing / milk products / spices / coconut / walnut /cashew nut ) or upgradation and expansion of such unit and for establishing Food Parks. Grant is available at 25% of the cost of capital equipment and technical civil works upto a maximum of Rs.50.00 lakhs.

More info visit Website of Ministry of Food Processing : www.mofpi.nic.in

STATE CAPITAL SUBSIDY - MSME POLICY 2008 ANNOUNCED BY GOVT. OF TAMIL NADU

• Capital Subsidy 15% on eligible plant and machinery subject to a maximum of Rs.30.00 lakhs (set up in 251 backwards blocks -- however micro enterprises are eligible in all areas)
  
  
• Additional Capital Subsidy for select category of entrepreneurs Additional Capital Subsidy of 5% to a maximum of Rs.2.00 lakhs to Enterprises set up by Woman / SC/ST/Physically Handicapped / Transgender enterpreneurs
  
  
• Employment Incentive Subsidy Employment Incentive Subsidy of an additional 5% subject to a maximum of Rs.5.00 lakhs will be granted, if at least 25 workers have been employed for a minimum period of 3 years within the first 5 years from the date of commencement of production.
  
  
• Special Capital Subsidy to thrust sector enterprisesMicro/Small/Medium manufacturing enterprises in the dthe following Thrust Sectors are eligible plant and machinery subject to a maximum of Rs.30.00 lakhs
  
  1. Electiral & Electronics Industry
  2. Leather & Leather Goods
  3. Auto Parts and components
  4. Drugs and Pharmaceuticals
  5. Solar Energy Equipments etc.
  
  
• Back ended interest subsidy 3% Back ended interest subsidy to a maximum of Rs.10.00 lakhs for enterprises overa period of five years on loans taken upto Rs.100.00 lakhs for modernisation / ISO Certification / MSEF Schemes.
  
  
• Low tension power tariff(LTPT) subsidy Flat rate of 20% for the first 36 months from the data of commencement of production or from the data of power connection, after allotment of an Entrepreneur Memorandum from District Industries Centre.
  
  

  More info visit Website of MSME : www.tn.gov.in