Tamil Nadu state is the second largest contributor to the Indian GDP and the second most industrialized state in India. Good infrastructure backed by the easy availability of skilled or unskilled manpower makes it an ideal State for setting up manufacturing units or service units. In order to attract Foreign Direct Investment and boost domestic investment in businesses, Tamil Nadu government has announced various subsidies and schemes. In this article, we cover a list of business subsidies and schemes popular in Tamil Nadu. The following subsidies are only available for SSI units or MSME units.
To know more how to obtain SSI Registration or MSME Registration, visit the following:
•MSME Registration in India
•How to obtain online SSI Registration
Capital Subsidy
All Micro Manufacturing units or Micro SSI units that are set up anywhere in the state of Tamil Nadu and investing in capital assets (plant and machinery) are eligible to receive a capital subsidy of 15% on eligible plant and machinery, subject to a maximum of Rs.30 lakhs. Micromanufacturing units are those manufacturing units having less than Rs.25 lakhs of investment in plant and machinery.
In 251 blocks identified as backward regions as well as industrial estates encouraged by the Government and the Government Agencies such as SIPCOT, SIDCO, and others., with the exception of industrial estates situated in the radius of about 50 Kms from the Chennai city centre, the tangible subsidy will be ready for every SSI Unit, Micro, Medium as well as small size businesses. Further, an extra capital-subsidy of five percent (5%), that is subject to the maximum of Rs.2 lakhs are to be given to business enterprises started by the Women, SC / ST, disabled people and also Transgender entrepreneurs.
An extra capital subsidy of twenty-five percent (25%) is also provided on the value of a plant & machinery fixed to encourage cleaner & environmentally friendly technologies, that are subject to the maximum amount of Rs.3lakhs as well as certification by “Tamil Nadu Pollution Control Board” which the devices installed tend to serve such purposes.
List of all the Backward Blocks in Tamil Nadu.
The Employment Intensive Business Subsidy
For those sector setup in the Backward Blocks of the industrial estates encouraged by the State Government, an extra capital subsidy of up to five percent (5%) which is subject to the total of Rs.5 lakhs is to be given if more than twenty-five (25) workers have been engaged to work for them in a minimum period of three years in the 1st five years from commencement date of their production activities. The evidence for proving the employment of their workers should be the related statutory remittances like the returns that are filed under the “Employees Provident Fund” Act, etc.,
Agriculture Subsidy
Capital subsidy as well as “Employment Intensive Business” subsidy are open for those that are setting up any agricultural business in the 385 blocks of Tamil Nadu state.
New Entrepreneur Enterprise Development Schemes [NEEDS]
The NEEDS scheme is made known by the state Government to aid the learned youth in Tamil Nadu to set up their own businesses as the first generation entrepreneurs. Learned youth with Degree, or Diploma, ITI/Vocational or Training via any recognized college of higher learning or institution as well as in their peer group of twenty-one to thirty-five (21-35) years under the General Category or twenty-one to forty-five (21 to 45) years under a Special Category aiming to be entrepreneurs are eligible for help under the scheme as stipulated. The project value shall not be more than Rs.1.00 crore. The Capital subsidy which is twenty-five percent (25%) of the cost of the project of a maximum of Rs.25.00 lakhs is to be provided by the Government of the state. If you need more information, check up on the article about NEEDS Scheme in Tamil Nadu.
Interest Subsidy Scheme [Interest Subvention Scheme]
All the term pertaining to a loans sanctioned from 03.09.2012 by the “Tamil Nadu Industrial Investment Corporation Limited” [TIIC] for the SSI units or Small, Medium and Micro Enterprises both in manufacturing and the service sectors, that are under different types of the schemes such as the General Term Loan, the Term Loan for Windmill, the Working Capital Term Loan, or Open Term Loan, etc. are liable for the three percent (3% ) interest subsidy. All the Individual beneficiaries can gain a maximum interest subvention which is up to Rs.30.00 lakhs under this stated scheme not minding the number of such loans.
Back-ended Interest Subsidy
A three percent (3%) back-ended interest subsidy will be made provision of to the maximum of Rs.10.00 lakhs for a period of (5) five years on any loans that is up to Rs.100.00 lakhs and Micro, Small, or Medium Enterprises under this specific schemes.
Generator Subsidy
Tamil Nadu government gives the subsidy of about twenty-five (25%) of the market cost of the Generator to a capacity of 320 KVA which is purchased on/after the 11.11.2008 day by every new and existing Micro, or Small as well as Medium production companies for the captive use subject to maximum of Rs.5.00 lakhs.
