Micro, Small and Medium Enterprises Department
குறு, சிறு மற்றும் நடுத்தரத் தொழில் நிறுவனங்கள் துறை

தமிழ்
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GUIDELINES FOR AVAILING 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.
List of activities eligible for subsidy under the thrust sectors enterprises

Electrical and Electronic Industry

List of Electrical and Electronic items mentioned in the eligible list given in G.O. Ms. No. 14, MSME (B) Dept., dated 07.05.2008. Electrical and Electronic items with ISI certification or items manufactured by enterprises who have obtained ISO 9001 Certification alone will be considered eligible for subsidy.

Leather and Leather goods

Includes tanneries and leather processing enterprises, subject to the condition that the Enterprise has obtained necessary clearances from Tamil Nadu Pollution Control Board.

Auto parts and components

List of Auto parts and components mentioned in the eligible list given in G.O. Ms. No. 14, MSME (B) Dept. dated 07.05.2008. Auto parts and components manufactured by enterprises who have obtained ISO 9001 Certification alone will be considered eligible for subsidy.

Drugs and Pharmaceuticals.

All drugs and formulations including Allopathic, Siddha, Ayurvedha, Unani, Homeopathy etc., as approved by the Indian Pharmacopoeia , subject to the condition that the Enterprise has obtained required drug licenses under Drug Control Order from authorities concerned.

Solar Energy Equipment

Enterprises manufacturing the following Solar Energy Equipments are considered eligible for subsidy.

  • Flat -plate solar collectors
  • Concentrating and pipe type solar collectors
  • Solar water heaters and systems
  • Solar crop dryers and systems
  • Solar stills and desalination systems
  • Solar pumps based on solar thermal and solar photo-voltaic conversion
  • Solar power generating systems
  • Solar photo-voltaic modules and panels for water pumping and other applications
  • Solar cookers
  • Solar refrigerators, solar cold storage air conditioning systems

Pollution Control equipments

The enterprises manufacturing Pollution control equipments should submit a Certificate obtained from the TNPCB authorities duly indicating that the pollution Control equipments manufactured by them meets the standards prescribed by the Pollution Control Board.

Following list of Manufacturing Enterprises/activities are not eligible for capital subsidy
  • Sugar
  • Distilleries, Brewery and Malt Extraction
  • Units utilizing Molasses/rectified spirit/de-natured spirit as raw material for manufacture of potable alcohol
  • Fertiliser
  • Mining and Quarrying
  • Iron and Steels Smelting
  • Beedies / Cigarettes / Cigars / Gutka and Tobacco based products
  • All types of Saw Mills
  • Micro, Small & Medium Service Enterprises
  • Cement
  • Aluminium Smelting
  • Calcium Carbide
  • Slaughter House
  • Re-packing of Drugs/Medicine/Chemical, without any processing or value addition
  • Azoic/Reactive Dyes
  • Fire Crackers
  • Industries manufacturing and / or utilizing Ozone depleting substances
  • Poultry
  • Cyanide
  • Caustic Soda
  • Potassium Chloride
  • Nylon Fibre
  • Rayon Fibre
  • Polyester Fibre
  • Agro based industries set up in corporations and municipalities in the state
  • All capital subsidy applications filed after one year from the date of commencement of commercial production.