Subsidy / Incentives for Micro, Small and Medium Enterprises

Sl. No. Subsidy Details

State Capital Subsidy 

(For further details refer G.O.Ms.No.14 dt.07.05.2008 of MSME Department, Govt. of Tamilnadu)

1. Capital Subsidy 15% on eligible plant and machinery value, subject to a maximum of Rs.30 lakhs (set up in 251 backward blocks – however micro enterprises are eligible in all areas)
2. Additional Capital Subsidy for select category of Entrepreneurs Additional Capital Subsidy of 5% subject to a maximum of Rs.2.00 lakhs to Enterprises located in backward areas / agro based industries & set up by Women / SC / ST / Physically handicapped / Transgender entrepreneurs.
3. Employment Intensive Subsidy Employment Intensive Subsidy of 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 for units set up in backward areas / agro based enterprises.
4. Subsidy for Agro based Enterprises Capital Subsidies 1-3 above are extended for setting up of Agro based enterprises in all 385 blocks in the State.
5. Special Capital Subsidy to Thrust Sector Enterprises notified by the State Government Micro / Small / Medium manufacturing enterprises in notified thrust sectors are eligible for 15% on eligible Plant and Machinery subject to maximum of Rs.30.00 lakhs. Such industries set up anywhere in the State are eligible.
6. Back-ended Interest Subsidy 3% Back Ended Interest Subsidy to a maximum of Rs.10.00 lakhs over a period of five years on loans up to Rs.100.00 lakhs for Micro / Small /Medium Enterprises under specific schemes like MSEF Scheme, CLCS eligible technology.
Generator Subsidy

(For further details refer G.O.Ms.No.27 Dt.21.5.2009 of MSME (D2) Department, Govt. of Tamilnadu)

1. Generator Subsidy 25% of the cost of Generator set upto the capacity of 125 KVA purchased on or after 11.11.2008 by all new &  existing Micro, Small and Medium manufacturing enterprises for their captive use subject to the maximum limit of Rs.1.50 lakhs.
Central Government. Subsidy
1. Credit Linked Capital Subsidy (CLCS). For further details, refer to www.dcmsme.gov.in 15% Subsidy on eligible plant and machinery for MSME enterprises subject to a maximum of Rs.15 lakhs for upgradation in technology by induction of specified technology / machinery in specified industrial sectors.
2. Restructured Technology Upgradation Fund            (RTUF) Scheme for Textile units & Jute                          industries given by Ministry of Textiles,          New Delhi.             For further details refer to www.txcindia.com Eligible textile units undertaking technology upgradation in conformity with the scheme can avail any one of the incentives below subject to eligibility criteria:- 
  • Reimbursement of 5% of interest charged for specified repayment period (4% for stand alone  spinning). 
  • 15% / 20% / 25% Margin Money Subsidy in lieu of 5%  interest reimbursement in case of select sub sectors.
  • 5% interest reimbursement plus 10% capital subsidy for specified textile  processing, garmenting units & brand new shuttleless looms.
3. Food Processing Subsidy given by MOFPI,           New Delhi. For further details, refer to www.mofpi.nic.in 25% of the cost of plant and machinery and technical civil works up to a maximum of Rs.50 lakhs is available for Fruits and Vegetables, Milk Products, Meat, Poultry, Fishery, Cereal / other consumer food products, Oil seed products, Rice Milling, Flour Milling, Pulse Processing, etc.

TIIC is the implementing agency for various capital subsidies of State Government in respect of its assisted units. TIIC is also the nodal agency for the select Central Government Subsidies like Credit Linked Capital Subsidy, Food Processing Subsidy, etc. in respect of its assisted units.  TIIC gives subsidy bridge loans against eligible subsidies to the eligible units assisted by it, helping them to implement their projects on schedule.

 

Page modified on 01.02.2012