Capital Subsidy

Capital Subsidy

The following incentives and concessions are being extended to micro, small and medium enterprises in the State:

• 25% capital subsidy on the value of eligible plant and machinery, subject to a maximum of Rs.150.00 lakh
• Additional capital subsidy for enterprises set up by Women / Scheduled Caste / Scheduled Tribe / Differently Abled and Transgender entrepreneurs at the rate of 5% on the value of eligible plant and machinery, subject to a maximum of Rs.5.00 lakh.
• Additional Capital subsidy 10% for micro enterprises on the investment made in plant and machinery value, subjected to a maximum of Rs.5.00 lakh.
• All existing Micro and Small Manufacturing Enterprises setup anywhere in Tamil Nadu graduating to higher category by undertaking expansion/diversification are eligible for 5% additional capital subsidy subject to a maximum of Rs. 25 lakhs for scaling up.
• Additional Capital Subsidy at the rate of 25% of plant and machinery value installed to promote such technology subjected to maximum of Rs.10.00 lakh for new and existing enterprises promotes cleaner and environmental friendly technologies.

Eligible Enterprises

• All new micro manufacturing enterprises established anywhere in the state.
• All new small and medium enterprises under following 24 thrust sectors established anywhere in the state (excluding additional capital subsidy and employment generation subsidy):
Electrical and electronic industry
Leather and leather goods
Auto parts and components
Drugs and pharmaceuticals
Solar energy equipment
Gold / Diamond jewellery for exports
Pollution control equipments
Electric Vehicle components, charging infrastructure and components
Cost - effective building material
Readymade garments
Food processing
Plastic (except ‘one-time use and throw away plastics’)
Rubber
Bio Technology
Petro Chemicals and Speciality Chemicals
Medical Devices, Equipment and Components
Sports goods and accessories
Technical Textiles and Medical Textiles
Aero Space, Defence Applications and Components
Electronic System Design and Manufacturing
Alternate products for ‘one time use and throwaway plastics
Electronic Waste Processing
Industry 4.0
Traditional Industries
• All new small and medium manufacturing enterprises established in any of the 254 industrially backward blocks in the state.
• All new agro based small and medium manufacturing enterprises established in any of the 388 blocks in the state.
• Existing manufacturing enterprises of the above categories which have taken up substantial expansion / diversification of the existing activities.
• During the financial year 2020-21, a sum of Rs.26999.37 lakhs has been disbursed to 3491 MSMEs in the State.

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