MSME Subsidy in Tamil Nadu - Schemes, Benefits and Incentives

The MSME Subsidy in Tamil Nadu provides financial assistance to promote the Micro, Small, and Medium Enterprise under the MSME Policy 2020. Businesses employ people and assist in overall beneficial growth and development of the industrial sector of the state. The MSME Subsidy in Tamil Nadu as the financial assistance, incentives and loans for a firm to boost technology, skill and infrastructure.

Several of the state’s entrepreneurs take benefit of the MSME Subsidy in Tamil Nadu which has the primary objective of enhancing the condition in the state for the development of new MSME related to different types of sectors. The MSME Subsidy in Tamil Nadu was designed to provide a measure of affirmative rates of subsidization in efforts for innovation, competitiveness and productivity drive within the Micro, Small and Medium Enterprises business environment.

The objectives of the MSME Subsidy in Tamil Nadu has various incentives for the Micro, Small, and Medium Enterprises for the development of economy in the state. Some of the benefits of MSME Subsidy in Tamil Nadu are listed below:

1. Economic Development: The MSME Subsidy in Tamil Nadu provides grants to the Micro, Small, and Medium enterprises to develop it further which in turns the business, opens up new employment opportunities and boosts the economy.
2. Financial Aid: The MSME Subsidy in Tamil Nadu reduces the cost of capital and operation among MSMEs through incentives.
3. Encourage Entrepreneurship: The MSME Subsidy in Tamil Nadu gives an opportunity to fund Micro, Small and Medium Enterprises and hedges start- up financial risks.
4. Regional Growth: The MSME Subsidy in Tamil Nadu is to encourage Micro, Small, and Medium Enterprises for industrialization in the less developed area to reduce the gap between economic sectors, Urban and Rural.
5. Generate Employment: The MSME Subsidy in Tamil Nadu supports these kinds of businesses and you are able to grow and create employment in manufacturing, handicrafts and services industries.

The MSME Subsidy in Tamil Nadu provides financial assistance and incentives to Micro, Small, and Medium Enterprises under 9 categories which are listed below:

• Capital Subsidy

  Incentive	Details
  Capital Subsidy	25% on the value of eligible plant and machinery, max ₹150 lakh.
  Additional Capital Subsidy for Specific Groups	5% for enterprises set up by Women, SC/ST, Differently Abled, and Transgender entrepreneurs, max ₹5 lakh.
  Additional Capital Subsidy for Micro Enterprises	10% on investment in plant and machinery, max ₹5 lakh.
  Scaling Up Subsidy	5% additional capital subsidy for existing Micro and Small Enterprises graduating to a higher category, max ₹25 lakh.
  Subsidy for Cleaner Technologies	25% on plant and machinery value for promoting cleaner technologies, max ₹10 lakh.

• Eligibility Criteria for Capital Subsidy

  Criteria	Details
  New Micro Enterprises	Established anywhere in Tamil Nadu.
  New Small and Medium Enterprises	Established in 24 thrust sectors anywhere in Tamil Nadu.
  Manufacturing Enterprises in Backward Blocks	Established in any of the 254 industrially backward blocks.
  Agro-Based Manufacturing Enterprises	Established in any of the 388 blocks in the state.
  Existing Enterprises	Those that have taken substantial expansion/diversification.

• Power Subsidy

  Incentive	Details
  LTPT Subsidy	20% for 36 months from the commencement of production or power connection for new micro manufacturing enterprises.
  Generator Subsidy	25% subsidy on the cost of generators (up to 320 KVA), max ₹5 lakh, for micro manufacturing enterprises in rural areas.

• Interest Subsidy

  Incentive	Details
  BEIS Interest Subsidy	5% back-ended interest subsidy on term loans for 5 years: - Up to ₹20 lakh for loans up to ₹2 crore under CGTMSE. - Up to ₹25 lakh for loans up to ₹5 crore for technology upgradation/modernization.

• Energy Efficiency Incentives (PEACE)

  Incentive	Details
  Energy Audit Reimbursement	75% of the cost of conducting energy audits, max ₹1 lakh per unit.
  Machinery and Equipment Reimbursement	50% reimbursement for replacing machinery to improve energy efficiency, max ₹10 lakh.

• Quality Certification Incentives (Q-CERT)

  Incentive	Details
  Certification Reimbursement	Reimbursement for consultancy and certification costs: - Up to ₹2 lakh for national level certifications. - Up to ₹10 lakh for international level certifications.

• Payroll Subsidy

  Incentive	Incentive
  EPF Contribution Reimbursement	Reimbursement of employee EPF contributions for 3 years, max ₹24,000 per employee per annum, for enterprises employing more than 20 persons.

• Reimbursement of Stamp Duty & Registration Charges

  Incentive	Details
  Stamp Duty Reimbursement	50% reimbursement of stamp duty and registration charges for new Micro and Small enterprises in 254 industrially backward blocks.

• Additional Scaling Up Subsidy

  Exemption Type	Details
  Scaling Up Subsidy	5% additional capital subsidy for existing Micro and Small Enterprises scaling up, max ₹25 lakh.