CS-TN

"Capital Subsidy" by the MSME Dept, Govt of Tamil Nadu, assists MSMEs in reducing their burden of capital procurement. The subsidy is provided for 25% of eligible plant and machinery costs for MSMEs, with an additional capital subsidy for MSMEs set up by Women/SC/ST/Transgender/PwD entrepreneurs.

The scheme "Capital Subsidy" by the Micro Small and Medium Enterprises Department, Government of Tamil Nadu, is introduced to assist MSME enterprises in reducing their burden of capital procurement. The subsidy is provided for 25% of eligible plant and machinery costs for Micro Manufacturing Enterprises and Small and Medium Enterprises, with an additional capital subsidy for enterprises set up by Women / Scheduled Caste / Scheduled Tribe / Differently Abled and Transgender entrepreneurs.

• 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.

Check your Eligibility for the Scheme here

• 25% capital subsidy on the value of eligible plant and machinery, subject to a maximum of ₹ 150,00,000.
• 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 ₹ 5,00,000.
• Additional Capital subsidy of 10% for micro-enterprises on the investment made in plant and machinery value, subjected to a maximum of ₹ 5,00,000.
• All existing Micro and Small Manufacturing Enterprises set up anywhere in Tamil Nadu graduating to higher category by undertaking expansion/diversification are eligible for a 5% additional capital subsidy subject to a maximum of ₹ 25,00,000 for scaling up.
• Additional Capital Subsidy at the rate of 25% of plant and machinery value installed to promote such technology subjected to a maximum of ₹ 10,00,000 for new and existing enterprises promotes cleaner and environmentally friendly technologies.

Following list of Manufacturing Enterprises/activities are not eligible -

• Sugar.
• Distilleries, brewery and malt extraction.
• Units utilizing Molasses/ rectified spirit/ de-natured spirit as raw material for manufacture of potable alcohol.
• Fertiliser (except bio-fertilisers).
• Mining and quarrying.
• Iron and steel smelting.
• Beedis/ cigarettes/ cigars/ gutka and tobacco-based products.
• All types of Saw Mills.
• Cement.
• Aluminium smelting.
• Calcium carbide.
• Slaughter house.
• Re-packing of drugs/ medicine/ chemical, without any processing or value addition.
• Azoic/ reactive dyes.
• Fire cracker.
• Industries manufacturing and or utilizing Ozone depleting substances.
• Poultry.
• Cyanide.
• Caustic soda.
• Potassium chloride.
• Nylon fibre.
• Rayon fibre.
• Polyester fibre.
• One time use and throw away plastics.
• All service MSMEs.
• Any other enterprise/ activity as may be notified by Government.