Subsidies and  Incentives

Sl. No. Subsidy Details

State Government Subsidies / Incentives

A. Subsidy / Incentives for Micro, Small and Medium Enterprises
(For further details, refer G.O.Ms.No.14 dt.07.05.2008 of MSME Department, Govt. of Tamilnadu)
 

1. Capital Subsidy 25% 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 25% on eligible Plant and Machinery subject to maximum of Rs.30.00 lakhs. Such industries set up anywhere in the State are eligible.
6. New Entrepreneur cum Enterprise Development Schemes [NEEDS] Government of Tamilnadu has formulated a Special Scheme for New Entreperneur cum Enterprise Development Scheme [NEEDS] in order to assist the  educated youth to become first generation entrepreneurs.  Educated youth with any Degree, Diploma, ITI/Vocational Training from a recognized institution and in the age group of 21-35 years under General Category and 21 to 45 years under Special Category aspiring to become entrepreneurs would be eligible for assistance under this scheme.  The project cost shall not exceed Rs.1.00 crore. Capital subsidy of 25% of the project cost upto a maximum of Rs.25.00 lakhs will be provided by the State Government.  Besides, a 3% interest subvention will also be extended by the State Government. For further details, refer G.O.(Ms).49, MSME (D2) Department, dated 29.10.2012.
7. 3% Interest Subvention Scheme All term loans sanctioned with effect from 03.09.2012  by Tamilnadu Industrial Investment Corporation Limited for Micro, Small and Medium Enterprises both manufacturing and service sectors, under various types of schemes like General Term Loan, Term Loan for Windmill, Working Capital Term Loan, Open Term Loan, etc. are eligible for the 3% interest subvention.  Individual beneficiary can avail maximum interest subvention of Rs.30.00 lakhs irrespective of the number of loans. For further details, refer to G.O.Ms.No.156 Industries (M.I.F.2) Department, dated. 03.09.2012 & G.O.(Ms).No.173, Industries (M.I.F.2) Department, dated. 04.10.2012
8. 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.


B. Generator Subsidy

(For further details, refer G.O.Ms.No.27 Dt.21.5.2009 and G.O. (Ms) No.12 dt. 19.03.2012 of MSME (D2) Department, Govt. of Tamilnadu) 

1. Generator Subsidy

25% of the cost of Generator set upto the capacity of 320 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.5.00 lakhs.


C. Incentives to Medium / Mega / Large Scale Industries 
(For further details, refer G.O.Ms.No.15 of Industries (MIB 1) Department dated 04.02.2008)

1. Incentives to Medium / Mega / Large Scale Industries

TIIC has been nominated as the Nodal Agency for sanction and disbursement of incentives / subsidies for Medium / Mega / Large Scale Industries in Tamilnadu whose investments upto Rs.300 crores.              For eligibility norms, please click here.


Central Government Subsidies / Incentives

1. Credit Linked Capital Subsidy (CLCSS) for Technology upgradation of Small and Micro Industries given by Commissioner, Ministry of Small, Micro and Medium Enterprises [MSME], New Delhi for the FY 2012-2013. For further details, refer to www.dcmsme.gov.in

Eligible Small and Micro units undertaking technology up-gradation in conformity with the scheme for the specified sectors mentioned in the MSME Guidelines can avail CLSC as follow:-

  • Ceiling on loans for the eligible machinery is Rs.1.00 Crore.

  • The Rate of Subsidy is 15%  or Rs.15.00 lakhs on the eligible machinery. 

  • Operation of the scheme is upto 31.03.2014.

2. Revised Restructured Technology Upgradation Fund (RR-TUF) Scheme implemented  by  Ministry  of  Textiles, Mumbai for the  period from 2012 to 2017. For further details  refer to www.txcindia.gov.in

Sl. No.

Type of Subsidy

The following Eligible  line of textile units undertaking technology upgradation in conformity with the scheme can avail any one of the incentives below subject to Eligibility Criteria(ECN)  issued by  IDBI and SIDBI and Unique ID (UID) allotted by O/o The Textile Commissioner, Mumbai  with cap available for the different sectors by the Ministry of Textiles.

1.

2% IR

Stand alone spinning machinery

2.

2% IR (or) 8% MMS

Weaving Second hand imported Shuttle-less Loom

3.

5% IR (or) 15% MMS

(a) Spinning with matching capacity
(b) Processing of fibers, yarn, fabrics, garmenting and made ups;
(c) Garmenting
(d) Technical Textiles & Non-Woven and converted of non-woven
(e) Cotton Ginning & Pressing 
(f) Wool sector Synthetic Filament Yarn texturising/Crimping/Twisting
(g) Mfg. Viscose Filament Yarn/Viscose staple yarn Independent Weaving
(h) Knitting
(i) Embroidery on Stand alone
(j) Made up manufacturing
(k) Jute Sectors
(l) Carpet
(m) CAD, CAM & Design Studio

4.

5% IR + 10% CS (or) 15% MMS

(a) Processing of Fibers, Yarn Fabrics, Garments & Made-up
(b) Garmenting
(c) Technical Textiles,
(d) Non-Woven & Converters of Non-Woven

5.

6% IR + 15% CS (or) 30% MMS

Weaving Brand New Shuttle-less loom.

6.

5% IR (or) 30% CS

Handloom and Silk Sectors.

  • IR - 2% or 5% or 6% Interest Reimbursement Subsidy will be available for the period of maximum 7 years including 2 years Implementation and moratorium.

  • CS - 10% or 15% Capital Subsidy can avail along with the Interest Reimbursement Subsidy for the specified textile machinery in the scheme

  • MMS - 15% Margin Money Subsidy will be available subject to a ceiling of Rs.75 Lakhs and 30% Margin Money Subsidy will be available subject to a ceiling of Rs.150 Lakhs for MSME units with a Capital ceiling of Rs.500 Lakhs.

  • RR-TUFS benefits will be made available on First-cum-First-Service basis.

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 viz. Food Processing Subsidy  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 10.02.2014