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 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.

Central Government Subsidy
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 31.03.2013.

2. Restructured Technology Upgradation Fund            (RTUF) Scheme for Textile units & Jute                          industries given by Ministry of Textiles,          Mumbai, for the FY 2012-2013. 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 and cap fixed to the different sectors by the Ministry of Textiles. 

  • Reimbursement of 5% or 4% Interest Subsidy for standard category borrowers for a period of 7 years including 2 years of implementatin and moratorium. 

  • 15% Margin Money Subsidy (MMS) on investment in TUF eligible machinery subject to a ceiling of Rs.45.00 Lakhs.

  • 20% Margin Money Subsidy (MMS) on investment in TUF eligible machinery subject to a ceiling of Rs.60.00 Lakhs or Rs.1.00 Crore (whiever is applicable).

  • 25% Capital Subsidy for purchase of new machinery for upgradation of Silk Sector and Handloom Sector, etc. on the basic value of the machineries excluding the tax component in lieu of 5% Interest Reimbursement.

  • 5% interest reimbursement plus 10% capital subsidy for specified textile  processing, garmenting units, technical textile machinery & brand new shuttleless looms, on the basic  value of the machineries excluding the tax component.

  • TUF benefits will be made available on First-cum-First-Serve basis.

  • Operation of the scheme is upto 31.03.2013.

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 17.09.2012