Government of Tamil Nadu
Micro, Small and Medium Enterprises Department
Commissionerate of Industries and Commerce
தொழில் வணிக ஆணையரகம்

Incentives to Micro Small & Medium Enterprises

The Micro, Small and Medium Enterprises sector accounts for the major share in number of industrial units, output in manufacturing sector and exports in the State besides being a major employment provider next only to agriculture, the need for vitalising this sector assumes greater importance. Taking cognizance of the above factor and in order to give special impetus to MSMEs, the Tamil Nadu Government is extending the following incentives to Micro, Small and Medium Enterprises established in the State:-

1. Subsidy schemes for micro manufacturing enterprises

  • 25%Capital Subsidy on the value of eligible plant and machinery.
  • 20% low tension power tariff subsidy for the first 36 months from the date of commencement of commercial production or from the date of power connection, whichever is later.
  • Stamp duty exemption on mortgaged and pledged documents.
  • For detailed guidelines click (G.O.Ms.No.14, MSME (B) Dept., dt. 07.05.2008)

2. Subsidy schemes for Industrially Backward Blocks and Agro Based Enterprises

Micro, Small and Medium Manufacturing Enterprises established in 251 industrially backward blocks, all industrial estates promoted by the Government and Government Agencies like SIPCOT, SIDCO, etc., (excluding Industrial Estates located within a radius of 50 Kms from Chennai city centre) and agro based enterprises set up in all the 385 Blocks in the State are eligible for the following package of incentives:

  • 25% capital subsidy on the value of eligible plant and machinery subject to a maximum of Rs.30 lakh.
  • 5% additional employment intensive subsidy on the value of eligible plant and machinery for providing employment to 25 workers for 3 years within the first 5 years from the date of commencement of commercial production, subject to a maximum of Rs.5 lakh.
  • 5% additional capital subsidy on the value of eligible plant and Machinery for enterprises  set up by women, SC/ST, differently abled and transgender entrepreneurs subject to a maximum of Rs.2 lakh.
  • 25% additional capital subsidy on the value of eligible plant and machinery installed to promote cleaner and environment friendly technologies subject to a maximum of Rs.3 lakh, if certified by the Tamil Nadu Pollution Control Board.
  • 20% low tension power tariff subsidy for the first 36 months from the date of commencement of commercial production or from the date of power connection whichever is later.
  • For detailed guidelines click (G.O.Ms.No.14, MSME (B) Dept., dt. 07.05.2008)

3. Special Capital Subsidy for Thrust Sector Enterprises

A Special Capital Subsidy of 25% on the eligible plant and machinery subject to a maximum of Rs.30 lakh is extended to 13 thrust sector enterprises setup anywhere in the State viz., Electrical and Electronic Industry, Leather and Leather goods, Auto parts and components, Drugs and Pharmaceuticals, Solar Energy Equipment, Gold and Diamond Jewellery for exports, Pollution Control equipments, Sports Goods and Accessories, Cost effective building materials, Readymade Garments, Food Processing, Plastic and Rubber Industries.
For detailed guidelines click (G.O.Ms.No.14, MSME (B) Dept., dt. 07.05.2008)

4. Generator Subsidy

The Micro, Small and Medium manufacturing enterprises anywhere in the State, which purchase Generator sets up to 320 KVA capacity are eligible for a Generator Subsidy at 25% of the cost of the generator set, subject to a maximum of Rs.5 lakh.
For detailed guidelines click (G.O.Ms.No.27 MSME (D2) Dept. dt. 21.05.2009)

5. Back-ended Interest Subsidy

Back-ended interest subsidy at the rate of 3%, subject to a maximum of Rs.10.00 lakh for a period of 5 years is being provided to Micro, Small and Medium Manufacturing Enterprises for term loans up to Rs.1 crore obtained for Technology up-gradation / modernization and Credit Guarantee Fund Trust Scheme (CGFTS).
For detailed guidelines click (G.O.Ms.No.14, MSME (B) Dept., dt. 07.05.2008)

 

 

                   Unit assisted under Capital Subsidy