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 31.03.2017.

2. Ministry of Textiles, Government of India had introduced and implemented a new scheme "AMENDED TECHNOLOGY UPGRADATION FUND SCHEME (ATUFS)" for granting One Time Capital Investmernt Subsidy (CIS) for the  period from 13/01/2016 to 31/03/2022. For further details, refer to  www.txcindia.gov.in 

Sl. No.

Rate of Capital Investment Subsidy (CIS)

The Eligible Non-MSME Entities/Units registered under Companies Act with the Registrar of the Companies and MSME Entities/Units registered with the concerned Directorate of Industries/relevant Department of the State Government in the following line of textile segments undertaking technology upgradation in conformity with the scheme can avail One Time Capital Subsidy in any one of the incentives below subject to Eligibility Criteria and Unique ID (UID) allotted by O/o The Textile Commissioner, Mumbai  with cap available for the different sectors by the Ministry of Textiles.

Maximum CIS Per Indidvidual entity (Rs.)

1.

15% on Eligible Machines

Garmenting, Technical Textiles

Rs.30 Crores

2.

10% on Eligible Machines

Weaving for brand new Shuttle-less Looms (including Weaving Preparatory and Knitting) Processing, Jute, Silk and Hand Loom

Rs.20 Crores

3 (a).

15% on eligible machines

Composite unit/Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost.

Rs.30 Crores *

3 (b).

10% on Eligible Machines

Composite unit/Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is less than 50%, then the subsidy cap will be Rs.20 Crore.

Rs.20 Crores *

*   In case the applicant had availed subsidy earlier  under RRTUFS, he will be eligible for only the balance amount within the overall ceiling fixed for an individual entity.

The Maximum subsidy for overall investment by an Individual entity under ATUFS will be restricted to Rs.30.00 Crore.

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 27.10.2016